European Investment Bank lends EUR 400 mln to finance Ukrainian agriculture

On Monday, December 28, Prime Minister of Ukraine Arseniy Yatsenyuk signed a financing agreement (in the frame of Ukraine Agri-Food Apex Loan) between Ukraine and the European Investment Bank, Joinfo.ua reports with reference to the press service of the Cabinet.

Implementation of the Agreement will allow attracting EUR 400 mln for 12 years with 4-year grace period to support the agricultural sector in Ukraine. The funds will support projects in the field of growing grain and oilseeds, the fishery sector and aquaculture in Ukraine.

Ukrainian government as a borrower will act through the Ministry of Finance, which in cooperation with the Ministry of Agriculture and Food and JSC “Ukreximbank” will carry out project selection and monitoring their implementation.

The EIB will cover up to 50% of the identified projects. The rest will be financed by own funds of participating banks or by final beneficiaries. Therefore, the Project aims to accumulate financial resources in an amount equivalent to at least EUR 800 million.

Project implementation will ensure the achievement of the following results:

– Involvement in the agricultural sector medium- and long-term financial resources;

– Support for SMEs;

– The introduction of measures to modernize existing plants and new production facilities;

– The development of infrastructure and logistics;

– Improving the balance of payments by increasing export potential (of cereals and oilseeds) and the reduction of imports (of fisheries and aquaculture);

– An increase in tax revenues to the budget enterprises;

– Improvement of the business climate and create conditions to stimulate investment.