Over 700 loans have been approved for the agriculture, forestry and fishing sector under the Ukraine Credit Guarantee Scheme (UCGS).
The credit scheme provides viable small and medium enterprises (SMEs) and small mid-caps, including primary producers, impacted by economic challenges arising from the war in Ukraine with access to low-cost finance.
Figures published today (Thursday, April 4) by the Strategic Banking Corporation of Ireland (SBCI) show that 714 UCGS loan applications made by the agriculture, forestry and fishing sector were approved by the end of February.
Agriculture, forestry and fishing has the highest number of approved loans of any sector, accounting for 26% of the 2,755 loans that have been given the green light across all sectors.
The value of these approved loans stands at just over €38 million, which is 15% of the total approved value of €258 million.
The wholesale and retail trade; repair of motor vehicles and motorcycles is the sector with the highest loan approval value at over €47.6 million relating to 421 approved loans.
According to the SBCI, 642 of the approved loans in the agriculture, forestry and fishing sector worth €33.8 million have been drawn down.
Ukraine Credit Guarantee Scheme
The UCGS facilitates the provision of working capital and medium-term investment finance to businesses who are facing supply chain disruptions and increased input costs, including energy.
Businesses which have experienced an increase in costs of over 10% on 2020 will be allowed to access lending terms of up to six years, on loans ranging from €10,000 to €1 million, with amounts of up to €250,000 available on an unsecured basis.
Borrowers contribute to the cost of the scheme by paying a risk premium on the credit advanced.
The €1.2 billion scheme is provided by the Department of Enterprise, Trade and Employment (DETE) and the Department of Agriculture, Food and the Marine (DAFM).
It is due to run until December 31, 2024 or until it is fully subscribed.