Ukraine: financial institutions have to more actively provide alternative sources of financing to agrarians

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The FINANCIAL — To date, financial institutions should more actively provide alternative sources of financing to Ukrainian agrarians for purchasing of the necessary resources, especially material and technical resources, declared the Сouncellor to the Board for Agriculture at Crédit Agricole Вank, Jean-Jacques Hervé during his speech at the Ukrainian Agrarian Congress in Kiev, on October 15.

In addition, mutual trust and stability is the basis for effective relationship between the financial institution and the client. First of all, banks need to be sure that the company`s management is stable. In addition, the economic context plays its important role, in particular liquidity and the cost of company`s financial resources, said the expert.

J.-J.Hervé called imposition of the mechanism of agricultural receipts and the mutualisation of risks between partners, among the most important innovations in financing of the Ukrainian agro-industrial complex.

The second of the reporting mechanisms is quite attractive for financial donors, because it is quite difficult to calculate the risks of investing in the agrarian sector of Ukraine. However, despite the howling potential of the Ukrainian agricultural sector, financial donors prefer investing in the industry in rather cautious way, the expert added.

As a result, J.-J.Hervé expects that in 1-2 years, Crédit Agricole Вank will work in Ukraine at the minimum investment level.

 

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