The Verkhovna Rada of Ukraine ratified an agreement with the European Investment Bank (EIB) on attracting a 12-year loan for EUR 400 million, to be used to support the fishing industry, as well as small and medium agribusiness.
”The borrower is the Ukrainian State, which with the participation of the Ministry of Agrarian Policy and Ukreximbank will be transferring the money through the banking system to the ultimate beneficiaries in order to finance projects… The annual interest rate will be about 1.6% in the euro, or the Euribor rate, which now stands at -0.2% , plus 1%. No one-time commission is provided,” Deputy Finance Minister Yuriy Butsa said, while presenting the document.
According to him, the project will be implemented in 2016-2020. At the same time, the grace period is 4 years, and the total maturity is 12 years, including a grace period.
As UNIAN reported earlier, the EIB funds can cover up to 50% of project costs. The source of financing of the remaining 50% of the cost will be own assets of participating banks or the assets of agribusinesses.
The Ministry of Agrarian Policy intends to allocate funds from the EIB loan to SMBs, mainly producers of grain and oil, to the development of aquaculture and other projects in the agricultural sector. A special feature of the program is that the agribusinesses will receive loans at a lower rate than the rate on loans set by Ukrainian banks.