The Ministry of Economy, Environment and Agriculture of Ukraine has announced the start of the application process for non-banking financial institutions — credit unions and financial companies — to participate in a pilot project aimed at financing farmers. The initiative targets small and medium-sized producers with land holdings of up to 500 hectares, ProAgro Group reports.
Financing will be provided through loans partially covered by portfolio guarantees from the Partial Credit Guarantee Fund in Agriculture. The Fund will assume up to 50% of the risk on such loans, significantly reducing the risks for financial institutions and giving agricultural producers access to more affordable financing. The total guarantee limit within the project is UAH 80 million.
To participate in the selection process, credit unions and financial companies must hold a valid license authorizing them to issue loans.
The launch of this mechanism is part of a broader government strategy to support the agricultural sector and expand access to financing for small farmers. The Partial Credit Guarantee Fund enables farmers to invest in machinery, seeds, fertilizers, and other production needs even when access to traditional bank lending is limited.
The new pilot project aims not only to strengthen the financial resilience of farmers but also to expand lending instruments within the non-banking sector, creating a more competitive environment for agricultural financing.
As previously reported, from January to November 2025, businesses received nearly 27,000 loans under the “Affordable Loans 5-7-9%” program, totaling UAH 79.9 billion.
