AUB partners news

Lately, in the reports of native mass media the unwillingness of banks to credit agricultural producers at rate 17% per annum was multiply asserted, though the Memorandum on mutual understanding and cooperation between agricultural producers, banks and insurance organizations which the AUB joined envisaged such loan rates.

The AUB reported that the Memorandum provides for average weighted interest rate on credits for enterprises of the agricultural and industrial complex to be not higher than in 2004. Calculation forecasts of specialists prove that in 2005 the average weighted rates on credits will not exceed 17% per annum. However, it does not mean that during the year all banks will grant credits at such interest. Credits for agriculture are granted not only for sowing time but also after it for different purposes: dieting of plants, products processing, harvest, etc.

“Today interest rates are formed under the pressure of political crisis in November-December 2004. However, the tendency for interests decrease involving population funds has been already determined”, President of the AUB Olexandr Sugonyako said. President of the Association of Ukrainian Banks also expressed his certainty that cost of credit will be reduced in the nearest months.

Press Service
of the Association of Ukrainian Banks