Banks are very reluctant to lend to farmers from frontline areas – survey
6 May 2025 09:42
Agrarians from the temporarily occupied territories and regions close to the active combat zones are waiting for the law to come into force, which provides for a freeze on loan accruals and repayments. In the meantime, they continue to bear the financial burden of loans taken out before the full-scale invasion. This is emphasized by the All-Ukrainian Agrarian Council, "Komersant Ukrainian" reports.
At the request of the Public Union, the Smart Country analytical center conducted a survey in April 2025 with representatives of 57 agricultural enterprises in Zaporizhzhia, Kherson, Donetsk, Luhansk, Kharkiv, Dnipro, and Sumy regions.
The total loan portfolio of the surveyed enterprises amounted to UAH 494.5 million, of which UAH 362.6 million was in the temporarily occupied territories and UAH 131.9 million was in the “red” zone.
According to the survey, 38% of respondents have fully repaid their loans, while the rest are still under financial pressure from loans taken out before the full-scale invasion.
Banks do not always hear farmers
The results of the survey showed that banks are practically not lending to the frontline areas anymore, including those agricultural enterprises that have fully fulfilled their obligations under previous loans.
According to the All-Ukrainian Agrarian Council, only 7% of the surveyed enterprises were able to get a new loan or are in the process of obtaining one.
Another 18% of farmers applied to banks and were rejected, mainly because they were located in the “red” zone.
And the most telling thing is that 74% of respondents have not applied to banks for new loans at all, as they do not expect to be approved.
Parliament has taken a step to ease the financial pressure on farmers
The Law “On Amendments to the Civil Code of Ukraine on Peculiarities of Lending and Financial Leasing during the Period of Martial Law” was adopted in late March and has been awaiting the President’s signature ever since.
This law gives farmers from the TOT and the war zone the opportunity to keep their farms and recover after de-occupation.
According to the All-Ukrainian Agrarian Council, agricultural producers expect the President of Ukraine to sign the document as soon as possible.
“This is a necessity in order not to lose the agricultural sector in the east and south of the country,” the public union said.
How the financial pressure on farmers should be reduced
According to the law, for the period of martial law in Ukraine and within one year from the date of its termination or cancellation, it is decided to
– prohibit the enforcement of debts on loans and leasing obligations,
– suspend enforcement actions and measures to enforce decisions for the duration of the suspension of accrual and payment of loan and lease obligations.
It also provides for the extension of the loan agreement and agreements concluded to secure the fulfillment of obligations under this agreement for the period of suspension of accrual and payment of the relevant monetary obligation.
