Monday, December 28, 2015

EIB lends EUR 400 mln to finance agricultural sector in Ukraine

On Monday, December 28, Prime Minister of Ukraine Arseniy Yatsenyuk has signed a financial agreement (Ukraine Agri-Food Apex Loan) between Ukraine and the European Investment Bank.
Implementation of the Agreement will attract EUR400 mln for 12 years with a 4-year grace period to support the agricultural sector in Ukraine. The funds will support projects in the field of growing grain and oilseeds, as well as the upgrade of the fish sector and aquaculture in Ukraine.

The European Investment Bank will act as the lender in the framework of the Project, while Ukraine will be the borrower of resources through the Ministry of Finance, which jointly with the Ministry of Agriculture and Food and in cooperation with JSC Ukreximbank will carry out a project selection as well as monitor their implementation.
The EIB loan funds can cover up to 50% of the identified projects. The rest will be financed by own funds of participating banks or by final beneficiaries. Therefore, the Project aims to accumulate financial resources in an amount equivalent to at least EUR 800 million.


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