President of Ukraine Volodymyr Zelenskyy signed the laws No. 10168-2 and No. 10169-2 aimed to fight against illegal grain turnover. Denys Marchuk, Deputy Chairman of the Ukrainian Agri Council (UAC), said this and other bills aimed at supporting farmers and improving their financial condition during his speech at the United News telethon.
According to Marchuk, the problem of illegal grain market is one of the biggest challenges for the agricultural sector.
"As a result of illegal schemes, farmers do not receive remuneration for their work, which harms the country's economy and each farm in particular. Thanks to the changes, since last fall, the number of transactions with black grain has already decreased from 30% to 18%. Verification of exporters and other measures were introduced to reduce the shadow turnover and facilitate the return of foreign exchange earnings to Ukraine. The UAC supports these measures," said Denys Marchuk.
Another important issue is the financing of farmers, especially in the frontline and de-occupied territories. The UAC Deputy Chairman emphasized the difficulties of obtaining loans for farmers in these regions:
"Although the 5-7-9 program legally exists, banks are reluctant to work with farmers because they do not have any assets as collateral. To solve this problem, it is important to strengthen signals from the Cabinet of Ministers of Ukraine, which acts as a guarantor of loans. Under the 5-7-9 program, the government assumes the risks. And for small farmers with up to 500 hectares of land under cultivation, a loan guarantee fund has been created. This mechanism is a direct assistance that allows producers to receive funds for their work. There is active communication between the Ministry of Agrarian Policy and the NBU to ensure that banks are properly serviced by the relevant regulations and that farmers can receive funds for their work. Everyone will benefit from this: agricultural products will be produced and loans will be repaid."
Draft law No. 11180-1 is particularly important, as it provides for the freezing of loans for agricultural enterprises that remained under occupation. "Many occupied enterprises are included in the register of debtors. The adoption of this draft law will unblock the activities of numerous producers who have moved to the government-controlled territory of Ukraine," Denys Marchuk emphasized.
Wednesday, 19 June 2024