Ukraine: Ag Ministry proposes to change its approach to distributing agricultural subsidies – 23.06.2010

According to the Minister, the way agricultural subsidies and loans are distributed will change.

The Cabinet of Ministers is going to cancel the subsidies and interest rate compensations. Instead, it will introduce a system of lending through the Agrarian Fund and UkrTransLeasing, which will receive 50% government agricultural support funds.

Those entities will be transformed into AgroFinFund and AgroFinLeasing. Supposedly, AgroFinFund will extend short-term loans on 5-6% per annum and AgroFinLeasing long-term ones (3-7 years) on 4-5% per annum. The changes are expected as soon as the Y2011 Budget is passed.

The program’s envisages that agriculture shall be financed solely from the State Budget’s general fund.

UkrAgroConsult

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