Ukrainian farmers are increasing their interest in investment lending – P. Huzyr
OTP BANK JSC records the growth of interest of Ukrainian farmers in lending for investment purposes. This was stated by the head of alternative sales channels "Agro Factory" of OTP BANK Pavlo Huzyr during the round table "Agricultural lending: how farmers can get funds for sowing", held by the "Financial Club".
"We see an improvement in the financial condition of borrowers. We see that farmers are more confident in attracting investment loans. Agricultural producers are updating their agricultural machinery, irrigation machines, tractors, combines, switching to more modern equipment, investing in energy-efficient solutions, and there will be processing lines. This speaks of stability and growing confidence. According to our calculations, currently about 30% of loans are taken specifically for investment purposes," - Huzyr said.
He added that within the framework of the program "Affordable Loans 5-7-9%" the Bank provides a loan for the renewal of the fleet of agricultural machinery and/or vehicles at 5-7% per annum for a period of up to 5 years. Also, within the framework of the program "Affordable Loans 5-7-9%" the Bank provides financing for the purchase of equipment for drying crop products, grain storage elevators, as well as for investments in processing. The program provides financing at 5-7% per annum for a term of up to 5 years. Each of these programs can be combined with a cashback of up to 10% from the European Bank for Reconstruction and Development, subject to compliance with EBRD requirements.
"Combining several programs into one is a solution that allows farmers to attract loans on the most favorable terms. We believe that combining investment lending programs with cashback from the EBRD is very profitable and is of greatest interest to farmers. In addition, OTP BANK is a participant in the state program "Made in Ukraine", which provides for 25% compensation for the cost of agricultural machinery of Ukrainian production. Which can also be combined with the same program 5-7-9", - said P. Huzyr.
He noted that OTP BANK offers clients a loan program to attract funds for the purchase of agricultural land. Financing is provided for a period of up to 7 years, with an advance payment of 20%. At the same time, the Bank's clients can use the state program "Affordable Loans 5-7-9%" to attract credit funds for the purchase of land. Also, financing can be obtained under the Risk Sharing Program, which OTP BANK implements in cooperation with the European Bank for Reconstruction and Development.
At the same time, the Bank implements a number of programs on special terms to enhance the energy independence of Ukrainian companies, including agricultural ones. In particular, you can get a loan to finance a project to enhance the energy independence of enterprises at a reduced rate of 5, 7 or 9% per annum. OTP BANK lends to projects to provide enterprises with all types of decentralized generation sources: solar panels with energy accumulation and storage systems, powerful diesel or gas piston (cogeneration) generators, as well as wind power plants and biogas plants.
As part of the co-financing program with the European Bank for Reconstruction and Development, borrowers will be able to receive an additional benefit in the form of cashback of up to 15% of the project cost.
Details: https://www.otpbank.com.ua/agribusiness/.
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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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