Banking sector under current conditions remains the main source of additional funding for Ukrainian farmers – P. Huzyr
During wartime, the banking sector continues to be the key source of additional financing for Ukraine’s agricultural sector, including for the modernization of production, renewal of agricultural machinery fleets, and development of processing capacities. Pavlo Huzyr, head of alternative sales channels at Agro Factory, OTP BANK JSC, stated this during the international conference Black Sea Grain. Kyiv – 2025, organized by UkrAgroConsult.
Huzyr took part in the panel discussion “Crossroads and Shifts in Agricultural Export Regulation 2024–2026” alongside Oksana Osmachko, Deputy Minister of Agrarian Policy and Food of Ukraine, Olena Voloshyna, Head of the IFC Office in Ukraine and representatives of the agricultural sector.
“Without a doubt, the banking sector holds a leading position among sources of additional funding for agribusiness. According to the Ministry of Agrarian Policy and Food of Ukraine, last year banks provided UAH 100 billion in financing to Ukrainian agricultural businesses. Of this, 52% was provided by banks with foreign capital. As one of the leaders in agricultural financing, OTP BANK offers a wide range of programs for agribusinesses. We roughly divide all our programs into two main categories: working capital financing and investment lending. The first category allows businesses to access funds for current needs, including purchasing inputs for planting, acquiring grain and other raw materials for trading and processing, export-import operations, and more. Under this category, the Bank offers financing through the ‘Affordable Loans 5-7-9’ program, standard interest rate loans in local and foreign currencies, partner compensation programs, trade factoring, and documentary operations. The second category includes programs for financing the renewal of agricultural machinery fleets, freight transport, modernization of grain elevator equipment, and development of processing facilities. OTP BANK is also a leader among banks in financing agricultural producers via financial agrarian receipts. Currently, the Bank is actively participating in the introduction of a new financial instrument—agri-notes—being implemented in Ukraine by IFC with support from the Swiss Confederation,” - said Huzyr.
He added that Ukrainian farmers are increasingly interested in banking programs and are actively seeking loans for various purposes. Specifically, OTP BANK has observed growing interest from businesses in financing energy-efficient solutions that ensure energy independence. The Bank offers a special program that provides loans for installing solar power plants, generators, cogeneration units, and other energy-efficient equipment. This program also includes up to 15% cashback on the loan amount, supported by the European Bank for Reconstruction and Development.
Additionally, OTP BANK offers long-term financing for up to 7 years to agricultural enterprises for the purchase of agricultural land. “Farmers are showing strong interest in this loan program. The Bank is currently reviewing several dozen applications from agricultural producers seeking financing for land purchases in various regions of Ukraine,” - Huzyr noted.
He also emphasized that OTP BANK participates in state support programs for the agricultural sector, including the “Made in Ukraine” program, which provides up to 25% compensation for the cost of agricultural machinery manufactured domestically. “This program is extremely popular among Ukrainian farmers. I believe it must definitely be continued and expanded. Made in Ukraine is a successful example of state support for domestic producers, as it stimulates the production of both agricultural goods and equipment,” - Huzyr stressed.
Learn more about OTP BANK’s agricultural financing programs in Pavlo Huzyr’s column for Agravery: https://agravery.com/uk/posts/author/show?slug=bankivske-kredituvanna-ak-osnovne-dzerelo-dla-zalucenna-dodatkovih-kostiv-v-agrosektor-v-umovah-vijni.
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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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