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The growth of processing in Ukraine is hindered by the lack of unsecured lending

Published Jan 23, 2025

Tridge summary

Ukraine's Minister of Agrarian Policy and Food, Vitaly Koval, has identified the slow growth of processing in the country's agro-industrial complex as being due to a lack of unsecured lending. He pointed out that Ukrainian banks are not providing project financing, which is necessary for the construction of processing plants. Koval urged for a shift in banking philosophy from collateral financing to project financing. The Minister also mentioned the operation of the Fund for Partial Guarantee of Loans in Agriculture in Ukraine for the past year and its provision of guarantees for the first 13 loans.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Minister of Agrarian Policy and Food of Ukraine Vitaly Koval admitted that the slow growth of processing in the agro-industrial complex of Ukraine is due to the lack of unsecured lending. This is reported by Delo.ua. According to Koval, Ukrainian banks are not yet ready to provide project financing. He noted that even if the construction of a deep corn processing plant in Ukraine is objectively profitable, which is confirmed by calculations, no bank will risk financing the construction with a grace period of several years. The Minister added that farmers also do not have the opportunity to repay the loan before the plant is launched. According to the head of the Ministry of Agriculture, Ukrainian business can still implement a small processing project with a budget of $3 million. We must change the philosophy of banks from solid collateral financing to project financing. The Fund for Partial Guarantee of Loans in Agriculture has been operating in Ukraine for a year, ...
Source: Agropolit
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