The Verkhovna Rada of Ukraine supported the creation of the fund for a partial guarantee of agricultural loans, a non-profit organization whose only activity will be to provide partial guarantees (up to 50%) on loan obligations of small and medium-sized businesses engaged in the primary production of agricultural products on an area of up to 500 hectares.
The corresponding bill was supported by 262 people’s deputies with the required minimum of 226 votes.
According to the text of the bill, the fund will provide guarantees for loan obligations of farmers for up to 10 years in the amount of up to 50% of the outstanding amount of their principal debt to those financial institutions with which the fund has concluded an agreement on cooperation in the relevant field.
At the same time, a number of legal entities will not have the right to receive guarantees from the organization, namely those associated with the aggressor state, belonging to terrorist organizations, with unidentified, foreign or offshore-registered ultimate beneficiaries, as well as individuals and legal entities in respect of whom special economic and other restrictive measures (sanctions) are applied.
In addition, the services of the fund will not be used by legal entities whose participants or ultimate beneficiaries are persons who simultaneously act as participants in other legal entities engaged in agriculture, as well as individual entrepreneurs who simultaneously act as participants in legal entities operating in the agricultural sector.
The sources of the formation of the fund’s resources will be the funds transferred from the budget to the charter capital of the fund; its income from financial and economic activities; funds received from third parties, loans and grants, funds from international financial organizations, and international technical assistance; budget resources; government domestic loan bonds.
