Parliament eased financial pressure on farmers. Who will feel it
27 March 17:28
The Verkhovna Rada has passed a law on the specifics of lending and financial leasing during martial law and eased the debt burden for farmers whose businesses have been affected by the war. This is reported on the Parliament’s website, "Komersant Ukrainian" reports.
When adopting this law, the deputies were guided by the fact that many farmers have lost not only many of their assets but also their main means of production – land plots – due to the hostilities. As a result, they are unable to conduct their business activities and, accordingly, fulfill their obligations to creditor banks under previously raised loans and lessors under financial leasing agreements.
According to the explanatory note to the draft law, for such enterprises, the resumption of production is possible only after the end of hostilities and occupation. Attempts to collect debts from them now will only lead to their final bankruptcy and termination of business activities, which reduces the likelihood of repayment of the relevant loans in the future.
With this in mind, MPs decided to reduce the financial pressure on farmers whose businesses have suffered from Russian aggression.
How they intend to do this
For the period of martial law in Ukraine and for one year from the date of its termination or cancellation, it was 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.
According to the deputies, this will protect the interests of business entities that are unable to conduct their business activities properly due to the hostilities.
EBA urges authorities to support business in frontline areas
Among the measures proposed by the European Business Association are changes in tax policy and, in particular, a reduction of the military tax to 1.5% and the unified social tax to 10% for employers in the frontline regions. In addition, according to business representatives, it would be advisable to introduce a zero rate of land and real estate tax for some time and suspend the automatic blocking of tax invoices.
The European Business Association also proposed to introduce a mechanism for compensating some transportation costs, tax incentives for transport companies in the frontline areas, and tariff privileges for transportation.
The list of proposals from business includes the expansion of the Affordable Loans 5-7-9% program and preferential lending to restore damaged property in the frontline areas.
How farmers use the affordable loan program
since the beginning of the year, 1,659 agricultural enterprises have received almost UAH 9 billion under the Affordable Loans 5-7-9 program. This was announced by Minister of Agrarian Policy Vitalii Koval.
Farmers received the most loans for business development:
– Kyiv region – UAH 892.3 million for 138 farms,
– Chernihiv region – UAH 855.4 million for 116 farms,
– Odesa region – UAH 711.9 million for 140 farms,
– Kirovohrad region – UAH 680.5 million for 152,
– Vinnytsia – UAH 630.8 million for 124 farms.
In total, in 2025, 4,438 agricultural enterprises have already attracted more than UAH 20.3 billion in bank loans under various programs.
