Development of agro-processing and support for small agricultural producers: OTP BANK joined the meeting with minister of agrarian policy and food of Ukraine
Head of Corporate Finance Directorate of OTP BANK JSC Nataliia Kondratchuk and project manager of alternative sales channels of OTP BANK Pavlo Huzyr took part in a working meeting between Ukrainian banks and minister of agrarian policy and food of Ukraine Vitalii Koval. The discussions focused on the development of agro-processing and support for small agricultural producers.
OTP BANK representatives emphasized that investment loans for purchasing equipment for processing, storage, and packaging agricultural products remain a crucial aspect of developing the agro-processing sector.
Specifically, within the state program “Affordable Loans 5-7-9%”, OTP BANK actively provides financing for processing investments with terms of up to 5 years at rates of 5–7%. For businesses located in high-risk war zones, the rate is reduced to 1%. Under this program, OTP BANK accepts loan applications for purchasing equipment for processing plant and animal products, elevator equipment, storage systems, and other resources needed to enhance agro-business processing capacities.
“Additionally, OTP BANK actively finances projects to strengthen energy independence for Ukrainian businesses, including processing enterprises. The Bank provides financing for projects involving the purchase and installation of solar panels for self-consumption, cogeneration systems for combined electricity and heat production, as well as wind turbines and biogas plants. We are ready to offer expert advice on each of these technologies and collaborate closely with the International Finance Corporation (IFC) in this area,” said - N. Kondratchuk.
A key part of OTP BANK work is implementing joint programs with international partners, enabling Ukrainian agribusinesses to access more financial resources. Through the loan program for upgrading agricultural machinery and equipment, the Bank’s clients can receive up to 15% cashback from the European Bank for Reconstruction and Development (EBRD).
Furthermore, OTP BANK participates in the state program Made in Ukraine, which offers a 25% reimbursement for the cost of Ukrainian-made agricultural machinery and equipment, if it was purchased from a manufacturer accredited by the Ministry of Agrarian Policy and Food.
“Collaboration with international partners allows us to expand our financing capabilities for Ukrainian agribusinesses. For instance, through the credit risk-sharing program, we attract portfolio guarantees from the IFC and EBRD to provide loans to small agricultural producers. Thanks to this, OTP BANK finances Ukrainian farmers cultivating as little as 200 hectares of land and employs a highly flexible approach to collateral requirements,” - added P. Huzyr.
Participants of the meeting also discussed increasing agricultural export volumes from Ukraine, particularly by boosting the share of value-added products in the structure of foreign shipments.
For more details on OTP BANK loan programs supporting Ukrainian agribusiness, please follow the link.
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Public Joint Stock Company OTP Bank is a subsidiary of OTP Bank, which is the largest independent Central-Eastern-European banking group. JSC OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. The bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standard.
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