News
25.05.2009
Peasants obtained just 20% of necessary funds
Agroindustrial enterprises obtained almost UAH 995.4 Ml of borrowed money as of early May that is nearly 20% of needed for the spring field works, said Grygoriy ZUB, Director of the Finance Department of Ukraine’s Agriculture Ministry.
According to him, this is almost three times lower than registered for this same time in 2008. Today, agro-industrial enterprises obtain credits on interest rates reaching 34% per annum. At the same time, G.ZUB noted that, according to forecasts of the regions, UAH 26.5 Bl would be needed for conducting the spring field works. Over 60% of this amount (about UAH 16 Bl) falls to input supplies, including UAH 4.7Bl (17.8%) for fuels and UAH 4.5 Bl (17.1%) for mineral fertilizers. At the same time, farms are provided with own circulating assets just at 36% (UAH 9.5 Bl). In other words, farmer needs for bank credits presently total over UAH 5 Bl. “With the uncovered funding deficit of over UAH 3.8 Bl, farmers are forced to turn to banks for credits,” added Mr. ZUB.
