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Volodymyr Groysman announces Gov't elaborates particular tools of budget support for agrarians for 2018
24.11.2017 | 13:26

The Cabinet of Ministers of Ukraine has embarked on determining specific mechanisms of support for agribusinesses and is planning its fast approval, which according to the draft State budget for the next year would exceed UAH 7 billion. This was stated by Prime Minister of Ukraine Volodymyr Groysman during a meeting devoted to the issues of development of the agro-industrial sector.

The Head of Government stressed that he had every reason to feel hopeful about the State Budget be approved in early December. Consequently, mechanisms for realization of budget programs for 2018 should be announced no later than in mid-December – so that agrarians could see their possibilities and plan activities.

"Next year we have to solve three problems – to saturate the market with products, to preserve export potential, to help farmers," said Volodymyr Groysman, "We are planning to approve the budget already on December 7, hence we will have three weeks to prepare the entire regulatory framework. Therefore, the agrarians will be aware of their opportunities".

The participants of the meeting stressed that the preliminary amount of budgetary provisions to be directed to the segment of farms the following year will amount to at least UAH 1 billion. Therewith, farmers with land bank of up to 500 hectares and a profit of up to UAH 10 million will be eligible for Government assistance. Among the priority projects for financing are production of fruit and berries, crop production (excluding grain crops and oilseeds), viticulture, apiculture, animal husbandry (a full range of activities), fish farming and organic production. Budgeting can be allotted both to finance working capital and to boost production.

In general, according to the plan, budget support for agrarians will amount to UAH 7.3 billion next year. As is planned the key tools for support will be a significant reduction in the cost of credit resources, especially for livestock farmers who have suffered significant losses in recent years due to epidemics and destruction of livestock, a compensation tool, including when purchasing equipment of domestic production, the construction of new agro-complexes, the purchase of breeding animals, as well as other types of assistance, including training, counseling services, which, according to USAID estimates, are required by almost 45% small farms of the country.

Reducing credits, as one of the participants of the meeting offered, will be held on basis of compensating for the primary loan to obtain a resource at an attractive interest rate, which can make up in the range of up to 1% for the projects in great demand. The parties agreed that the terms of crediting – the size, timing and criteria for the applicant could be the subject of discussions, but the scheme itself will be simplified to 4 steps - the application for a loan, determining the possibilities for lending, checking the applicant to prevent abuse, obtaining a loan. Such a mechanism, in the opinion of the participants, will be for livestock farms benefits.

"I emphasize, first of all, we are talking about support for farmers, livestock breeding, small farms. By mid-December all procedures should be elaborated. In January we should trigger activities in the real sector," the Head of Government noted.


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