OREANDA-NEWS. September 21, 2012. Ministry of Agrarian Policy and Food of Ukraine awarded "MEGABANK" with gold medal "for substantial contribution to the development of agrarian sector of Ukraine". The award was given in nomination "The best bank for clients from agrarian sector of Ukraine", reported the press-centre of MEGABANK.

The certificate was presented on the all-Ukrainian exposition "Agro-2012", which was held in National ExpoCentre in Kiev. Moreover, during the exposition under the auspice of the European Fund for SouthEast Europe (EFSE) the seminar "Study on Potential of Agricultural Finance in Ukraine" was held. During the seminar the specialists who conducted the correspondent researches stated that there is a lack of safe and affordable financial products for clients from agrarian sector. Meanwhile, banks are very cautious to clients from agricultural sector, especially to representatives of small and medium-sized businesses, appealing to different problems connected with servicing this sector.

The First Deputy Chairman of "MEGABANK" Alexander Laschenko told about his experience of work with agrarian sector, credits to small and medium-sized agricultural businesses and farms. According to him, "MEGABANK" considers agricultural finance to be one of the most prospective aspects of work nowadays despite all economic grievances. The bank has got both big agricultural enterprises and small farms among its clients. According to statistics, loans are mainly given to big and medium-sized agricultural businesses, since small farms have difficulties with pledging of collateral. This problem may be solved only legislatively – by giving the resolution as for land market: a cultivated plot may be a collateral. Besides, the bank sector faces the problem of low level of financial reporting of small farms which makes difficulties in credit risks assessment. A. Laschenko also said that simultaneously to classical credits to agricultural sector (financing the field work complex and credits to purchasing agricultural machinery) "MEGABANK" may work according to leasing schemes. According to him it can’t be stated for sure which financing system is the most profitable to agricultural business in Ukraine, since both leasing and bank crediting have own consumers.

Reference. As at 1 September of the current year the loan portfolio of agricultural businesses in "MEGABANK" is UAH 570 mln., 80% of which are short-term loans to spring-autumn complex of field works, 20% are investment loans to purchase agricultural machinery and equipment.