The current limits of the 5-7-9 preferential lending program do not meet the needs of the industry. This was stated by Denys Marchuk, Deputy Chairman of the Ukrainian Agri Council (UAC), on the ‘We Are Ukraine’ TV channel.

“5-7-9 preferential lending program are a salvation for producers during the wartime. They help farmers to stay afloat, given that the grain group has been selling at a loss for two years. The 5-7-9 preferential lending program also allows farmers to be prepared for the new season,” said Denys Marchuk.

However, the UAC Deputy Chairman emphasized the need to increase credit limits from UAH 90 million to UAH 150 million for all producers.

“Many farmers have already exhausted these limits, so we appeal to the National Bank and the government to raise them to UAH 150 million before the start of the autumn agricultural season,” he added.

The expert also drew attention to the fact that the 5-7-9 preferential lending program does not work in the ‘red zone’.

“People have returned to the frontline areas, are working and creating working spaces, but have no working capital. It is very important that there is a state guarantee for banks to work with agribusinesses in these areas,” he said.

The UAC Deputy Chairman emphasized the problem of farmers who left the temporarily occupied territories.

“There are businesses that declared their patriotic position and left the occupation. They took out loans for business development until 2022, and today they are left with nothing, but are in the registers of debtors. We cannot lose people with 20-25 years of experience in the agricultural sector,” he said.

The draft law No. 11180-1, which is supported by the Ministry of Agrarian Policy and the UAC, proposes to suspend loans during wartime for farmers from the temporarily occupied territories. “Farmers do not refuse to pay these old debts; they need to be restructured for 4-5 years. Then producers will realize that Ukraine appreciates them and creates conditions for their repayment,” added Denys Marchuk.