Ukraine needs another $1 billion to expand the powers of the Export Credit Agency in insuring exports of grain crops and commodities, Ukrainian Agrarian Policy and Food Minister Vitaly Koval said.
“The Agrarian Policy and Food Ministry and the Economy Ministry have done joint estimates, and I can tell you that we need around $1 billion for this [risk insurance in grain and commodity exports]. Our estimates were based on $200 per 5 million tonnes, which makes it $1 billion in total,” Ukrainian media cited Koval as saying at the Grain Storage Forum in Kiev.
As to whether Ukraine can draw the funds on international platforms in order to accumulate the money and increase agricultural exports, Koval said the government was exploring options of every existent institution and will be searching for additional funds to insure risks in agricultural exports.
Koval admitted that Ukrainian agriculture had limited access to cheap loans.
“Ukraine makes about UAH1.2 trillion worth of agricultural products, while loans account for only 9%, slightly more than UAH 100 billion. This shows that an enterprise engaged in production and trade is underfunded,” he said.
The global level of sufficient lending is 50%, and it stands at 202% of the gross domestic product in the United States, Koval said.
“We pin great hopes on foreign assistance,” he said.
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