Agricultural Financing (THM)

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Ukraine's agricultural sector is in great need of modernization, both in primary production and in processing. Small and medium-sized agricultural enterprises in particular do not have the agricultural technology required for competitive production. The low level of modernization of agricultural SMEs is largely due to a lack of long-term financing options. The sector has great potential due to its good natural conditions and the Association and Free Trade Agreement with the EU is opening up new sales markets. The aim of the FC module is to broaden and deepen the financial sector with a focus on agricultural financing. As part of the FC module, a financial institution and, for the first time, a leasing company in Ukraine have received equity-like loans (= subordinated loans). These strengthen equity and resilience to financial risks and enable them to offer financing for investments to agricultural SMEs. At the same time, they are being supported in developing specific products for agricultural financing. The larger and more suitable range of agricultural financing makes it easier for agricultural SMEs to modernize and increase their competitiveness and makes an important contribution to the development cooperation program to promote competition. The project is aimed in particular at SMEs that have income in foreign currency due to their export orientation or the nature of their purchase contracts.