Agro bank to open in Ukraine in 2010

Ukraine should see an agro bank come on line in 2010, established on the initiative of the Government using a state-owned financial institution as its basis.

According to Premier Tymoshenko, this agro bank will offer farm sector businesses collateral-free loans for terms of 5–7 years to buy equipment and to build processing plants and elevators. The Government promises to also direct such discounted into the construction of wholesale farmers’ markets and the development of service cooperatives that specialize in the primary processing of agricultural products.

Premier Tymoshenko noted, “The AgroBank will finance the farm sector in those areas that need development and not more than at world levels for credit resources—around 4–5%. We will change the current system, which subsidizes interest payments out of the State Budget.”