OREANDA-NEWS. March 14, 2011. “DANONE Ukraine” and INDEXBANK signed a Memorandum about starting a joint program of privileged crediting farms producing milk in Ukraine. Financing will be given for their further development: increase number of livestock, purchase of necessary equipment for improving quality of milk and increase production efficiency, reported the press-centre of INDEXBANK.

The project is targeted for 2011. The amount of invested money equals 2 mln euros. It is assumed that the project will cover more than 20 farmers, current and potential suppliers of DANONE, of various sizes.

INDEXBANK intends to finance farms on favorable rates, depending on the term of crediting and terms of their work with DANONE*. The company “DANONE” plans to compensate up to 50% from the interest rate per annum that will allow each farm taking a credit within the framework of this project to reduce their financial loading and will speed up the process of their development.

Philippe Guidez, CEO of PJSC “INDEXBANK”: "We believe in the great potential of Ukraine as an agricultural country, and the cooperation with agricultural enterprises in Ukraine is a priority for INDEXBANK. The volume of credits to agricultural enterprises is constantly growing, and we estimate that its size will reach 50% in the corporate credit portfolio of the bank by 2013. Important task for us today – the lowering of credit commission for the farmers, in this respect the initiative of DANONE to compensate part of per annum rate within our joint project is extremely important, as it allows increasing the attractiveness of bank credits for people in agricultural sector and involves more farmers’ enterprises into the financial sphere".

Alexander Pryschepa, director of milk purchases dept: "DANONE" works at the Ukrainian market more than 10 years and has proved as the company which directs a lot of efforts and means on development of dairy sector of our country. We support both small and large producers of milk, by means of granting consulting help and modern technologies of milking, financing of projects on modernization and livestock increase. Last year we have begun the program on association of private producers of milk in dairy cooperative societies. This year for the first time we begin the project on crediting of agricultural producers in partnership with large and known bank. Our joint purpose is development of dairy business in Ukraine, improvement of quality of the Ukrainian milk and increase in its quantity".

* For your information: the average credit rates for farmers in Ukraine are within 23-25% per annum in UAH

DANONE Group is a world leader in dairy products. The mission of the DANONE is to bring health through food to as many people in the world. DANONE is working in Ukraine since 1998. Today the company sells to Ukraine a wide range of products: Actimel, Activia, Rastishka, Danissimo, Zhivinka, Jolly shepherd. In 2006 DANONE bought milk plant "Rodich” in Kherson which has been redesigned and now is called “DANONE Dnepr". Today the plant produces more than 80% of DANONE.
www.danone.ua

PJSC “INDEXBANK” is a universal bank, owned by one of the largest financial groups in Europe – Crйdit Agricole Group (France). Crйdit Agricole ranked No. 3 in the world in terms of the balance sheet’s total and 7th European bank in terms of Tier One Capital (The Banker, July 2010) The bank has been operating on the financial market of Ukraine since 1993 and renders full range of services to private individuals and business, paying special attention to cooperation with agricultural companies. 370 000 of private clients and 25 000 of corporate clients confirm reliability and business reputation of INDEXBANK being engaged with their financial matters.
www.indexbank.ua