OREANDA-NEWS. On June 16, 2009 PLC "Megabank" visited the representatives of International Financial Corporation (IFC, World Bank group) – leader of the project "Development of agro insurance in Ukraine" Harry Roche and an expert on institutional development Nalaia Ilyina. During the meetings with the bank’s leadership and experts representatives of IFC have discussed standard products of agro insurance of the bank, practice of granting by the bank agricultural loans, use by the bank insurance products as an instrument of loan provision, reported the press-centre of Megabank.

The possibility of a broader bank’s interaction with insurance companies has been reviewed, including with the international re-insurers. Besides, the plans for organization of trainings for the bank’s experts on the issues of risk management in agricultural sector have been drafted.

As Megabank’s first deputy of the chairman Alexander Laschenko noted, a broader use of agro insurance in lending to farmers will undoubtedly increase the quality of loans provision, which is granted against the pledge of future harvest, will diminish the risk of agrolending and, respectively, increase in volumes of agrolending by the banks in Ukraine.

The leader of the project "Development of agro insurance in Ukraine" Harry Roche underscored, that the banks are a very important link in the system of agro insurance in the whole world. A more optimal use of agro insurance as loans provision will help expand the lending to the farmers, what in turn will result in development of agriculture in Ukraine.

Reference. The project ІFC "Development of agro insurance in Ukraine" is effected at the financial support of the Canadian International Development Agency (CІDA) and is called to help develop the insurance sector in agriculture of Ukraine. A more detailed information – at the web-site www.ifc.org/ukraine/ag-ins/.