EBRD will allocate USD 23 million credit to Agrotrade companies

The European Bank for Reconstruction and Development (EBRD) renders financing to the Ukrainian group of companies Agrotrade totaling USD 23 million.

A relevant agreement was signed on Tuesday, EBRD Deputy Director for Ukraine Graham Hutchison and Agrotrade Director General Vsevolod Kozhemiako told a press conference.

“The EBRD will support the Ukrainian agricultural company with financing, which will help raising its competitiveness. Today, the fourth part of the EBRD financing is going to the agricultural sector in Ukraine,” Hutchison has said.

The financing package includes a credit for replenishment of circulating capital to the amount of USD 15 million and a long-term credit at USD 8 million to finance measures on energy efficiency and expansion of capacities for processing and preservation of grain crops.

According to Kozhemiako, the funds will go to modernization of capacities for grain drying, where up-to-date economic equipment will be set up and for construction of the seed production plant in Kharkiv region.

Realization of the project, in which it is planned to invest USD 10 million this and next year, will enable to set up high standards for grain seeds production.

Agrotrade cultivates 50,000 ha of farm lands in Poltava, Kharkiv, Chernihiv and Sumy regions. A group is planning to send 800,000 tons of grain for export, which is 150,000 tons up against the previous year.

Kozhemiako noted that losses of early grain crops are estimated at 20%, and as regards late grain crops – no substantial losses are expected until now, but in case of absence of rains, they are possible. At the same time, losses of agricultural workers may be compensated by a high price for grain as a result of a drought in the USA.

The EBRD has obligations in Ukraine for now on rendering over EUR 7.4 billion (USD 9.76 billion) within the framework of 293 projects. This year is important for the EBRD in the agrarian business sector of Ukraine.


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