Financial support measures in agriculture through cheaper loans

Implemented in accordance with the program:  Financial support of agricultural producers: partial compensation of the interest rate on bank loans attracted in the national currency, approved by the Resolution of the Cabinet of Ministers of Ukraine for №300 dated 29.04.15.

Who is eligible for compensation

Legal entities of the agro-industrial complex, regardless of the organizational and legal form and form of ownership as well as entrepreneurs who are:

• engaged in livestock industry,
• other participants of agro-industrial complex.

Compensation amount

Accrued and paid in the current year interest (for January-October) on (1) short-term loans to cover working capital, (2) medium- and long-term loans for the purchase of fixed assets, financing expenses related to the construction and reconstruction of production facilities, remaking production in the amount of 1.5 NBU discount rate (effective on the date of accrual) but not higher than the amount stipulated by the loan agreement, reduced by 5 percentage points.

How to receive

1. To obtain a loan in the Bank in national currency.

2. To submit an application to the Bank (which includes information on related parties who are recipients of state support in the budget year):

• assets purchase contract and documents to it: consignment note, payment order, specification, acceptance and transfer certificate, invoice etc;
• contract for the provision of services / performance of works and documents to it: consignment note, payment order, specification, work completion certificate, invoice etc;
• extract from the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Associations confirming the enterprise is not in the process of liquidation / bankruptcy proceedings have not been initiated;
• recipient's consent to provide his/her/its information to the the Ministry in the form defined by the Bank.

3. The Bank creates the register and submits it to the Ministry by the 10th of each month.

4. The Ministry transfers budget funds to the Bank by the 25th of each month. The Bank credits them to the current account of the customer within 3 banking days.

Limitations on compensation amount per calendar year

• For borrowers and related parties operating in the livestock industry - UAH 15 million;
• For other borrowers and related parties - UAH 5 million.

NOTE

• Compensation is not provided to borrowers under concluded loan agreements, the interest on which is reduced at the expense of funds provided by other government programs (for example, 5-7-9 program etc.).

Program Restrictions

Financial support is not provided to recipients:

• in respect of which bankruptcy proceedings have been initiated,
• which are declared bankrupt,
• who are in the process of liquidation,
• who have overdue more than six months arrears of payments, the control  of which is provided of State Tax Service.