Banks increased lending to Ukraine’s agricultural sector to UAH 142 bln

By the end of 2025, bank lending to Ukraine’s agricultural sector reached UAH 142 billion, with agriculture accounting for around 14% of total financing in the economy. This was announced by Artur Zahorodnykov, Deputy Chairman of the Management Board of PUMB, during the Forbes Agro 2026 conference. According to him, agriculture remains one of the key sectors for the banking system even under wartime economic conditions.

Of the total UAH 142 billion portfolio, about UAH 83 billion was provided by five banks — Oschadbank, PrivatBank, Raiffeisen Bank, PUMB, and ProCredit Bank. This means nearly 58% of the market is concentrated among the top five institutions, which effectively shape lending conditions, including interest rates, collateral requirements, and risk assessment approaches.

PUMB ranks among Ukraine’s largest banks by assets. As of January 1, 2026, the bank’s assets totaled UAH 231 billion, while net profit reached UAH 8.05 billion. The concentration of agricultural lending within major universal banks indicates that farm financing has become a mainstream banking product, intensifying competition for high-quality borrowers.

For small and medium-sized agribusinesses, the combination of bank loans and state support mechanisms remains crucial. These include portfolio guarantees covering part of the principal risk, as well as instruments of the Agricultural Credit Guarantee Fund supported by the Ministry of Economy. In 2025, agriculture continued to be one of the largest beneficiaries of such programs.

The growth in agricultural lending is driven by several factors: demand for working capital to finance seasonal operations, investments in processing and energy independence (including bioenergy and on-site generation), and adaptation to EU requirements and ESG standards. In 2026, key risks will remain wartime uncertainty, logistics challenges, and portfolio quality. Banks are prepared to provide longer-term financing to companies that can demonstrate transparent cash flow, strong management reporting, and effective risk management.

Tags: Ukraine, credit, agricultural sector