On Monday, December 28, the Prime-Minister of Ukraine Arsenii Yatseniuk has signed the financial agreement (Project “Main Loan for Agriculture - Ukraine”) between Ukraine and the European Investment Bank, Govermental Portal reports.
The implementation of Agreement will provide an opportunity to attract EUR 400 mln for 12 years with 4-year grace period for supporting agriculture of Ukraine. The funds are planned to be allocated for implementation of projects in the sphere of growing grains and oil crops, modernization of fish farm and aquaculture in Ukraine.
The European Investment Bank will act as the Lender within the project. The Borrower of funds will be Ukraine represented by the Ministry of Finance, which will select projects and monitor their practical implementation with the participation of the Ministry of Agrarian Policy and Food and in cooperation with PJSC “Ukreximbank”.
EIB loan funds can cover up to 50% of the cost of certain projects. The funding source of other 50% cost will be own funds of participating banks or funds of final beneficiaries. Therefore, the implementation of the project will promote accumulation of financial resources in the amount of at least EUR 800 mln.
