The Government will save the sowing campaign from the failure caused by the National Bank’s inefficient policy on the extension of credits for AIC, through allocating the necessary means from the Agrarian Fund. Prime Minister of Ukraine Yulia Tymoshenko stated during a meeting on the issues of financing the spring-field works and the Agrarian Fund operation on Thursday.

“The failure produced by the banking system concerning the agrarians’ financing, will be compensated through the Agrarian Fund,” Yulia Tymoshenko stated, Government portal reported.

According to her, because of the National Bank of Ukraine refusal to extend credits for the agrarians, the AIC has faced serious problems on the organization and holding of sowing campaign, “Today, through the NBU policy on the extension of credits for the agrarian sector, we face the problem on financing the spring-field works,” the Prime Minister stated. 

Yulia Tymoshenko noted that the work with the National bank on the extension of credits for AIC that the Government pursued in January-February, gave no expected result.

The Prime Minister claimed that the National Bank had violated the earlier reached agreements to extend credits for the agrarian sector. She reminded that for the extension of credits the banks had extended only one third - 1.489bn hryvnias of the planned 3.852bn hryvnias, “Non-financing of the agrarian sector through the extension totaling 2.3bn hryvnias. This money failed to be put up to the agrarian sector because the National Bank and commercial banks failed to implement the strategy of the extension of credits”.   

Yulia Tymoshenko also informed that the banks create unfavorable conditions today for the work of agrarian sector, demanding additional mortgage from the villagers and also increase the credit interest to unreal level.

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