With the help of EU4Business and the European Bank for Reconstruction and Development (EBRD), an agricultural producer in the Cherkassy region of Ukraine has been able to secure a loan to upgrade its fleet of combine harvesters and acquire supplementary agricultural equipment.
The loan is covered by a first loss guarantee from the EU grant under the SME Direct Support Facility for SMEs in the three countries of the Deep and Comprehensive Free Trade Area (DCFTA) – Ukraine, Moldova and Georgia.
‘V.V. Kischenzi’, a privately owned diversified agricultural producer based in the Cherkassy region of central Ukraine, was the first project in Ukraine to benefit from the SME Direct Support Facility with a $5 million loan.
Kischenzi operates a variety of businesses ranging from grains and vegetables growing to dairy and pig farming. Around 60 per cent of its output is successfully exported to the European Union and other markets. The loan will be covered by a first loss guarantee from the EU grant under the Facility.
The proceeds of the loan will be used to upgrade the company’s fleet of combine harvesters and to acquire supplementary agricultural equipment like cultivators. The project will help Kischenzi strengthen its export potential and implement modern state-of-the-art farming technics and standards thus creating a successful benchmark for the industry in Ukraine.
By supporting this transaction the EBRD and the EU are continuing to provide more resources to support agribusiness, a key growth driver of the Ukrainian economy - and help small businesses in Ukraine unlock new opportunities available under the Deep and Comprehensive Free Trade Area.
The SME Direct Support Facility supports SMEs in boosting their competitiveness, eases their access to finance, helps them with new trade opportunities and compliance with new food safety, technical and quality standards, as well as with environmental protection measures.