Agrarians are increasing their interest in lending secured by agrarian receipts – I. Yerko
The popularity of financial agricultural receipts (FAR) as collateral for attracting credit funds is growing among Ukrainian agricultural producers. This told head of Agro Factory of OTP BANK JSC Ivan Yerko “How farmers can get a loan for sowing campaign from OTP BANK secured by the future harvest: the story of a company from Volyn”, published on Agroportal.ua.
“We at OTP BANK note the growing interest in such a financial instrument as agricultural receipts. Therefore, this year we have already issued 76 financial agricultural receipts for the total amount of UAH 814 million. Our clients are actively issuing loans against the collateral of agricultural receipts. For entrepreneurs, this is a reliable and fast way to attract funds, especially in the extremely difficult conditions in which Ukrainian business is currently operating. In this way, farmers can adapt to the current conditions on the market and, for example, keep the sale of products at better prices. We have the opportunity to lend with minimal risks for us and thus support Ukrainian business», - noted I.Yerko.
Financial agrarian receipts are a tool that allows farmers to attract credit funds if they do not have sufficient solid collateral. In case of lending under the guarantee of FAR, the future crop of agricultural crops, even not yet sown, is taken as security for the loan.
According to Yerko, it is important for OTP BANK that clients receive only the best conditions and have access to all necessary resources. For this purpose, the Bank implements a number of various credit programs in cooperation with both Ukrainian and international partners. The head of the Agro Factory project added that lending secured by the FAR greatly expands opportunities for Ukrainian agribusiness. In particular, with the use of such an instrument, OTP BANK can obtain up to UAH 20 million in credit funds.
Agro Factory is a scoring project of OTP BANK, which offers a flexible and unique approach to collateral conditions, as well as implements special tools for automating and evaluating clients' creditworthiness. In particular, a preliminary decision is provided within one working day, and credit funds to the account can be received in nine working days.
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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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