Farmers will be able to receive preferential loans under the “5-7-9%” program: the government has made a decision

The Cabinet of Ministers of Ukraine has expanded the state program “Affordable Loans 5-7-9%” to support farmers in the conditions of blocking sea export routes and increasing Russian attacks on port infrastructure.

This was announced by the Prime Minister of Ukraine Serhiy Koretsky.

Preferential loans to replenish working capital

According to the head of government, the Cabinet of Ministers is making changes to the “5-7-9%” program, which will allow agricultural producers to receive preferential loans to replenish working capital.

The state will compensate for the difference in interest rates, which will make financing more accessible to the agricultural sector.

The total amount of lending under the program will be up to UAH 80 billion.

“This will help farmers purchase everything they need for field work, maintain production and ensure stable exports of Ukrainian products,” Serhiy Koretsky noted.

Government working on expanding support

The Prime Minister also announced that the government is continuing negotiations with the European Commission on attracting additional funding to expand the preferential lending program.

Reason for the changes

The need for additional support for farmers arose due to the difficulties in exporting Ukrainian products by sea.

After the intensification of Russian attacks on port infrastructure and threats to shipping safety, the entry of ships into Ukrainian Black Sea ports was effectively suspended from July 23. Some exporters have redirected cargo to Danube ports, but representatives of the agricultural market warn that a prolonged blockade of sea exports could lead to a surplus of products, a drop in purchase prices and losses for producers.