OTP BANK supports and encourages farmers to adopt sustainable practices – Pavlo Huzyr
OTP BANK JSC continues to promote sustainable development and responsible business practices. In cooperation with international and governmental organizations, OTP BANK offers agricultural producers preferential interest rates and cashback programs for implementing environmentally friendly practices. This was highlighted by Pavlo Huzyr, Head of Alternative Sales Channels, Agro Factory, OTP BANK, during the XVI International Conference “Efficient Management of Agricultural Companies”, organized by the Ukrainian Agribusiness Club Association and UCABevent agency. The event gathered more than 400 top managers, investors, and industry innovators.
“As a representative of the financial sector, OTP BANK supports all sustainable practices through preferential financing in partnership with global donors and government organizations. Our aim is to stimulate and guide society and agricultural producers toward higher ESG standards,” emphasized P. Huzyr during the discussion.
He also noted that the Bank provides financing for agricultural land purchases. According to him, when farmers own their land instead of leasing it, they tend to treat it more responsibly and invest in irrigation and soil quality.
“We calculated that payments for a loan versus lease rent over seven years amount to nearly the same figures. At the same time, we all understand that the value of Ukrainian chernozem soil will continue to rise. Therefore, it is also a capital investment. Most importantly, an agribusiness can qualify for a higher credit limit, as we partially adjust this limit to substitute lease expenses,” added P. Huzyr.
OTP BANK is actively developing blended financing solutions. In cooperation with manufacturers and distributors of cutting-edge agricultural machinery, energy-efficient technologies, precision farming systems, and innovations (including AI), as well as in partnership with state programs supported by IFC and EBRD, the Bank provides financing under preferential terms. Priority is given to businesses owned by women, young entrepreneurs, and war veterans. These agronomic solutions and technologies reduce CO₂ emissions, minimize environmental impact, and save energy and water resources.
Pavlo Huzyr also underlined that there is a growing prospect of European capital entering Ukraine and the establishment of joint ventures. To that end, OTP BANK is preparing to co-finance Ukrainian businesses in order to build this shared capital base. Moreover, the agribusiness sector can expect the introduction of grant programs, development of project financing, and targeted preferential loans for sustainable agribusiness growth through cooperation between the banking sector, public-private partnerships, and international organizations and institutions.
Learn more about financing opportunities for Ukrainian agribusiness with OTP BANK here.
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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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