January 3 2003, 14:16 Interfax-Ukraine

Budget compensation of banking loans for Ukraine's farm sector cut 13.3 pc in 2003

Budget funding of farmer's bank interest partial compensation mechanism in 2003 is cut 13.3 percent compared with 2002 - down to 130 million hryvnias ($24.07 million).

Unlike in 2002, the state this year will be compensating only loans, secured be mortgage grain purchases.

As it has been reported with reference to Deputy Prime Minister Ivan Kyrylenko, in 2003 the government intends to direct "lion's share" of the budget funds, allocated for relieving burden of banking loans, to mortgage purchases of grain in order to stabilise the market in the period of excessive supply.