Expanding loan limits and reducing the interest rate under the state program of preferential lending program "5-7-9" will enable farmers in the de-occupied territories to resume production. This issue was stated by Denys Marchuk, the UAC Deputy Chairman, during the National Telethon.

According to his words, in the actual absence of state support programs in agriculture, the preferential lending program "5-7-9" has become the most popular tool for obtaining financing for Ukrainian farmers.

"Lack of funds reduces farmers' ability to purchase seeds, fuel, fertilizers, and plant protection products. As a result, the area under crops and yields are decreasing. Due to the hostilities and limited exports, the price of agricultural products in the country is very low. That is why agricultural producers have been working at a loss for two years now. These conditions are pushing farmers to take out loans and re-lend previous loans. Conventional loan programs from banks have an annual interest rate of 20%. That is why the state program of preferential lending "5-7-9" has been so popular among farmers for the second year in a row - 60% of all loans," said Denys Marchuk.

It is especially important to expand the lending limits to UAH 150 million and reduce the interest rate to 3-5% for farmers in the de-occupied territories. Such lending conditions will allow farmers to clear the fields of mines, purchase the necessary equipment and everything they need for the sowing season.

"There are territories that have been liberated for more than a year or more, but are unable to attract financing. The occupiers left behind mined fields, destroyed and looted farms. Ukrainian farmers cannot take out a loan secured by their property, so the state should act as a guarantor of their deposits to banks. It is also necessary to increase lending limits to UAH 150 million and reduce the interest rate to 3-5%. Otherwise, farmers will not be able to service these loans, which they need to resume their work," said the UAC deputy Chairman.

According to Denys Marchuk, one of the equally important factors in supporting agriculture is the restructuring of loans taken out before the full-scale invasion by farmers whose farms are currently occupied.

"It is necessary to restructure the loans of farmers whose farms remained in the occupied territories. No one is saying that they will not return these funds, but a loyal program should be developed to repay these loans that farmers took out before the full-scale invasion and whose farms are currently occupied. Otherwise, we will simply make successful farmers bankrupt, who have lost the opportunity to work through no fault of their own, but who can resume work in the territory free from the occupiers," added Denys Marchuk.

Also, the Ukrainian Agri Council called on the Cabinet of Ministers to extend the maximum term of loans under the state program "5-7-9" provided to farmers for at least one more year - until March 31, 2025. The current version of the CMU Resolution No. 28 of January 24, 2020 "On Provision of Financial State Support" stipulates that the maximum term of loans for financing agricultural producers under the state support program should not exceed the period until March 31, 2024.