EXPERT OF BANK CREDIT DNIPRO TALKED ABOUT MAJOR TRENDS OF AGROSECTOR FINANCING

19 January 2018

Today, the agricultural sector deservedly is in the focus of credit strategies of banks, being the leader of the Ukrainian economy: the industry forms 14% of GDP, is the main source of export earnings, provides jobs for every fifth Ukrainian. As a result of 2017, the volume of bank loans granted to farmers is estimated at UAH 115 billion, in 2018, further growth is expected at 15%. This was discussed at the round table "Financing of the agricultural sector: the most effective tools, the cost of financing. Agro-Discounts. "The organizer of the event "Financial Club" invited to the professional discussion representatives of banks that are active and successful players in the market of agro crediting. Bank Credit Dnipro was represented by Deputy Chairman of the Board Andrey Moiseenko.

"As one of the key drivers of economic development, the agricultural sector constantly attracts financial resources for effective business management and modernization, generates profit and maintains its loan portfolio qualitatively. It is natural that many banks view it as a priority in the formation of their business strategies, - said Andrei Moiseenko. - The competition in the segment is high, but given that the sector is still underfunded, the place under the agrarian sun will suffice all. Profitability of agribusiness, especially crop production, today allows borrowers to work out a loan rate, so the main competitive advantages are the high level of expertise of the bank in terms of understanding the specifics and needs of the client, the speed of decision-making and business process technology. "

The expert said that Bank Credit Dnipro focuses on medium-sized farms with a land bank from 0.5 to 10 thousand hectares and offers the products that are maximally adapted to their needs and seasonality of business. Active development of partner programs with leading distributors of domestic and world brands of agricultural machinery makes it possible to maximally reduce the cost of a credit resource for a customer, while ensuring a high quality of the goods. High demand for bank loan offers is confirmed by the results of 2017: the portfolio of agro credits reached about 300 million UAH.

The participants of the round table noted that in 2018 banks will continue to increase lending to the agricultural sector by expanding cooperation with suppliers and international financial partners, developing new instruments, in particular agricultural receipts, and further optimizing credit processes.

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