Ostchem Retail, the retail division of Ostchem holding, which is part of the nitrogen business of Dmytro Firtash’s Group DF, has entered into an agreement with Megabank on crediting the purchase of nitrogen fertilizers by farmers at a rate of 0.01% per month in the hryvnia and U.S. dollars for a period of 2-18 months, the group of companies said on the website.
“For Ostchem Retail, the partnership with Megabank is strategically important in terms of increasing its presence in the eastern-northern regions of the country. The bank has very strong positions in these regions. In addition, it is important for us that Megabank is very active in the agricultural lending segment and has good expertise in the agricultural industry,” Head of Ostchem Retail Yevhen Khurylenko said.
According to the company, the signed agreement provides for partial subsidizing of rates on seasonal loans for the purchase of Ukrainian-made mineral fertilizers on the part of Ostchem Retail, while on its part Megabank undertook to simplify the issuance of loans for farmers as much as possible.
“Lending to farmers is one of the fastest-growing segments of lending. Our bank believes in the further growth of the agricultural sector and regularly introduces new loan products to the market in this segment. The new product that we have offered to farmers together with Ostchem Retail will not only simplify farmers’ access to finance but will also have a positive effect on the marginality of their business,” Deputy Chairman of the Board of Megabank Olena Ponomarenko said.
As reported, Group DF in August 2020 signed an agreement on crediting the purchase of nitrogen fertilizers by farmers with ProCredit Bank, FUIB, Alliance Bank, Agroprosperis Bank, PrivatBank, and MTB Bank.
