The World Bank guarantees: thousands of agricultural enterprises have already appreciated the benefits of affordable loans
21 April 16:42
Since the beginning of 2025, 2,630 agricultural enterprises have attracted UAH 15.4 billion under the state program “Affordable Loans 5-7-9%”, which confirms its status as the main financial instrument to support the agricultural sector of Ukraine. This was stated by the Ministry of Agrarian Policy, reports
They remind that preferential financing of agricultural producers under the Affordable Loans 5-7-9 Program during 2024-2025 is possible thanks to the support of the World Bank under the Emergency Project for Inclusive Support for the Recovery of Ukrainian Agriculture (ARISE).
Starting January 1, 2025, loans under the Affordable Loans 5-7-9 program will be provided to agricultural producers (prolonged) provided that they are registered in the State Agrarian Register.
In which regions are affordable loans most actively used?
According to the Ministry of Agrarian Policy, Kyiv region leads this list, where 232 agricultural enterprises received loans worth UAH 1.71 billion. It is followed by:
Chernihiv region – UAH 1.53 billion for 192 enterprises.
Kirovohrad region – UAH 1.25 billion for 250.
Odesa region – UAH 1.16 billion for 210 companies.
Vinnytsia region – UAH 1.05 billion for 196.
Sumy region – UAH 915.2 million for 120.
Kharkiv region – UAH 862.1 million for 138.
Poltava region – UAH 835.1 million for 144 agricultural enterprises.
Under the terms of the Affordable Loans 5-7-9 program, farmers can receive a loan of up to UAH 90 million. Loans are provided at 5-9% per annum, depending on the loan category and business entity.
Affordable loans to help build vegetable storage facilities
Last week, the government expanded the program of affordable loans. From now on, according to Vitaliy Koval, Minister of Agrarian Policy and Food of Ukraine, agricultural producers investing in the construction of vegetable and potato storage facilities will be able to benefit from state support in the form of compensation of the interest rate on loans – up to UAH 150 million, as well as livestock and processing enterprises.
As explained by the Ministry, due to the war and the destruction of infrastructure in Ukraine, the storage deficit has increased to 60%. The need to build storage facilities is now 340 thousand tons.
What is known about the ARISE project
This is the “Emergency Project for Inclusive Support for the Recovery of Agriculture in Ukraine”. It is funded by the World Bank and implemented by the Ministry of Agrarian Policy and Food of Ukraine and the Entrepreneurship Development Fund.
It entered into force in December 2023 and will run until September 2025. The project aims to preserve access to short-term financing for agricultural enterprises to reduce the cost of borrowing in times of war.
The project provides retroactive compensation as part of the existing 5-7-9 loan program. It covers interest rate compensation on agricultural loans that were included in the general fund of the state budget of Ukraine.
