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Ministry of Agrarian Policy to widen preferential credits companies list
10.05.2007 13:26 "Agro Perspectiva" (Kyiv) —
As to Cabinet draft Decree «About Bringing Changes into Procedure of Usage in 2007 of Means Stipulated by State Budget for Financial Support of Agrarian-Industrial Complex Companies Through Mechanism of Short- and Medium-Term Credits Cheapening,» Ministry of Agrarian Policy proposes to enlarge list of companies having right to participate contest on obtaining of financial State support through short- and medium-term credits cheapening mechanism, with list to be widened with grains storage, flour milling, bakery, groats, mixed feeds, canned food, meat processing and dairy companies (incl. those belonging to consumers cooperation).
As to draft Decree, list is to be enlarged as well in order to retain banks credits ceiling interest rates at yearly 20% (for medium-term national currency credits attracted in 2005/06).
As to draft Decree explanatory note, improved mechanism of budgetary means allocation will create conditions for more effective State support implementation due to enlarged number of borrowing companies will be able to receive attracted credits compensations.
Draft Decree says proposed measures are targeted as well at stimulating of those Agrarian-Industrial Complex companies which receive attracted credits rates compensations to urgently repay indebtedness, what will result in raising of all levels budgets (as well as State Pension Fund budget) replenishment.
As to Agro Perspective earlier report, Law «About 2007 State Budget» stipulates
UAH66 mn are to be allocated to support Agrarian-Industrial Complex companies through short- and medium term credits cheapening mechanism implementation in order to attract over UAH11 milliard credits in 2007 (incl. short-term — UAH4 milliard, medium-term — UAH3 milliard and transitional — UAH4 milliard) as well as to serve 2005/06 long-term credits.
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