OREANDA-NEWS. According to the Chairman of KSG Agro Board of Directors Sergey Kasyanov, the Ministry of Agriculture initiative on state budget compensation of interest on bank loans to farmers will be an additional incentive for the development of the industry in 2015.

“Last year was a difficult period in the history of domestic agriculture, – says Sergey Kasyanov – The situation of agricultural enterprises is complicated with the bank loans that most enterprises had to restructure. This year, the compensation of bank interest is actual in connection with the need to invest in spring fieldwork. A free financial resource for many agricultural enterprises is hardly available. They have to pay the interest, to purchase fertilizers that grow in price against the devaluation of the national currency. As a result, the harvest results planned for this year may remain only as plans. And this should not be allowed now, when after a period of a crisis, domestic agribusiness continues to show high rates of productivity and exports”.

Sergey Kasyanov also noted that, despite the crisis, banks continue to lend to farmers. They offer loans for the construction of elevators, crop development, and export programs. However, according to the head of KSG Agro Board of Directors, agro-enterprises should implement a strategy aimed at replacement of the share of bank loans and development through own resources.

To remind, the Ministry of Agrarian Policy and Food has taken the initiative on bank interest compensation to farmers totaling 1.4 billion UAH to enhance the spring sowing campaign.