KYIV, Apr. 2 (Ukrainian News) – Agricultural enterprises are proposing that the government increase the amount of budget funds intended to refund part of the interest payments that they make on commercial bank loans, several regional representatives said Monday.
“True, such a proposal exists. The funds have been exhausted in certain districts [of this region],” said Anatoly Novakovsky, head of the Odesa regional administration’s agriculture department.
During the first three months of this year agricultural enterprises have used nearly all of the Hr 150 million in budget funds intended to refund part of their interest payments on loans.
On January 27, the Cabinet of Ministers decided to compensate 70 percent of interest payments on loans that agricultural enterprises obtain from commercial banks.
According to Agricultural Policy Ministry, agricultural enterprises have thus far obtained Hr 900 million in bank loans.
Representatives of regional governments say that unlike last year, agricultural enterprises are more actively attracting loans this year.
According to regional government specialists, banks are also far more willing to provide loans to agricultural enterprises this year than they were last year.
Agricultural producers attracted about Hr 1 billion in loans last year.
They took advantage of the interest-payment compensation to attract loans mainly for harvesting crops and for the autumn crop-sowing campaign.
A total of about Hr 50 million was spent as compensation payments on loan interest payments.
The government discontinued providing commodity loans to agricultural enterprises last year. However, the government began assisting agricultural enterprises in obtaining the resources that they required for sowing and harvesting crops.
An estimated Hr 2-2.5 billion is required for financing this spring’s crop-sowing campaign.
