Information for fruit and vegetables business in CIS
AMP and IPC specialists will cooperate to simplify the farm lending process
On the 11th of April a working meeting was held in Kyiv office of the Micro-Lending Program in Ukraine (IPC), the Loan Specialist of Odesa office, Agricultural Marketing Project participated in the event. The improvements to the IPC financial analysis system for the agricultural enterprises were discussed in the meeting. The previously used system was not well adapted to the agricultural production economics. It did not provide the analysts with the objective figures. And, the AMP expert found it rather cumbersome and labor-consuming.
To our regret, too many financial institutions in Ukraine experience difficulties with the agricultural business projects feasibility evaluation in the framework of the loan applications consideration. In the working process we faced the problem that the peculiarities of the agricultural enterprise economics are often a blind spot for the loan specialists in major banks. It frequently becomes an impassable obstacle for medium farms in their efforts to get a loan. Based on the experience of AMP cooperation with NADRA bank, analysis methods have been developed. Due to these methods only a couple of hours are needed to do all the financial-economic calculations for the loan application evaluation, the expert says.
The bank borrowing remains one of the most difficult problems for farms, especially fruit and vegetable farmers. Still, in reality the loan institutions often overestimate the risks and undervalue this business feasibility. The farmers have timely repaid all NADRA bank loans issued under AMP assistance. The Micro-Lending Program in Ukraine is also dedicated to help banks and farmers adjusting the mutually beneficial cooperation; we are glad to share our experience with the colleagues, Oleg Stoyanov, the AMP Loan Specialist concludes.
The more detailed information about the lending possibilities under support of the Micro-Lending Program of Ukraine (IPC) is available on site www.microcredit.com.ua