The leading companies in the agrarian financing market of Ukraine - the chemical concern BASF, Bank Credit Dnepr and the distributor Bershad Agroplyus - with the advisory support of the International Finance Corporation (IFC) have developed a unique credit product "Growth Credit" for growers for the purchase of high-quality plant protection products at favorable interest rates and with operational decision-making. The new product will work on the basis of an innovative digital platform, which was created by IFC experts in partnership with partners. The new platform allows you to qualitatively review approaches to risk assessment and reduce resource costs. Farmers will be able to receive funding within 3 business days at a reduced rate.
This project is part of the IFC, BASF, Bank Credit Dnepr, Bershad Agroplyus and other partners' agro-credit development programs. His goal is to increase access to financing in the agricultural sector of Ukraine.
"Plant protection products are a necessary and important component in the process of cultivating the crop, which increases yields. Our task is to help in time to provide agrarians with financial instruments that meet the specifics of their business and provide an opportunity to effectively solve urgent problems. Our new program will be another step in IFC's work in Ukraine to help increase the productivity and profitability of agribusiness, "said Leah Soroka, IFC Program Manager for Agribusiness Development in Europe and Central Asia.
Experts note that thanks to such a convenient and operational financing mechanism, agricultural producers have much more opportunities to buy more quality materials. Certified products and compliance with crop cultivation technology can at times reduce the risks of weather conditions, pests and others.
"Working closely with Ukrainian agrarians, we see that they value high-quality innovative plant protection products that give confidence in an excellent result throughout the season. At the same time, in an unstable economic situation and inadequate working capital, they are forced to resort to savings, which negatively affects the quality of the harvest and ultimately reduces the financial performance of the economy, creating new risks. That is why BASF not only invariably offers highly effective innovative plant protection products but also seeks new ways to help agronomists protect crops in a timely manner. We believe that the partnership program for lending to agribusiness will be a solid support for Ukrainian farmers and will open new horizons for the development of their farms, "said Tiberiu Dima, BASF agribusiness manager in Ukraine, Moldova and the countries of the Caucasus.
The distributor manager will independently come to the agricultural production, where he will receive on-site full information about the farm for further approval of the loan decision.
"The main principle of our work is the convenience for the producer. A quick assessment of credit risk is carried out at the place of its location: from the collection of information about the business and ending with the analysis of documentation. As a result, the manufacturer receives a preliminary decision on the loan immediately after providing all the data ", - noted in the company" Bershad Agroplyus ".
Bankers emphasize that the successful realization of a joint project in essence allows it not only to reduce the cost of credit for a producer and to bring it to pre-crisis level, but also to fully redefine approaches to risk assessment.
"We continue to increase investments in Ukrainian agriculture and now we make it not only affordable - at the pre-crisis level - but also fast enough in terms of decision-making. In our plans, to continue, together with IFC, the modernization and improvement of the technological platform, so that the process of examining the application by the bank's specialists was even more operational. We are not the first year in the field of agribusiness and we see the needs of our clients. Among the basic requirements is the speed of decision-making. Agrarians, due to the seasonality of business, simply do not have time to wait for decisions for weeks, therefore one of our main tasks today, in addition to restoring the rising cost of lending, is to create the most efficient and effective mechanism for the allocation of credit funds ", - said Andriy Moisjeenko, Deputy Chairman of the Bank's Board of Credit Dnieper