February 7 2002, 16:58 Interfax-Ukraine

The Government in team with NBU is eager to make loans for farmers cheaper

According to Interfax-Ukraina, the Premier, Anatoliy Kinakh, said to Feb. 6 meeting in Khmelnytsk that a joint group of the Cabinet and the NBU shall prepare within next 10 days their proposals for making cheaper loans for the farmer coming from commercial banks.

The Premier believes that loans with annual interest rates as high as 30-35% are non-permissible especially because last year's inflation was 6.1% and the discount rate 12.5%.

Ukrainian government believes that around UAH 4 bn of loans are required for spring planting campaign.

Meanwhile, Ukrinform reported, referring to Mr. Souhoniako, the President of Ukrainian Banks Association that in reality the volume of credits allocated by Ukrainian commercial banks to industrial entities grew by 40%.