Ukraine expands concessional loan program to support farmers

The Ukrainian government has approved changes to its “Affordable Loans 5-7-9%” program as part of an emergency support package designed to help farmers cope with the disruption of Black Sea export routes caused by Russian attacks. The program aims to provide liquidity for the autumn planting campaign, harvesting operations, and other working capital needs, while helping producers avoid selling grain at distressed prices. Total lending capacity for the agricultural sector is expected to reach UAH 80 bln.

One of the key changes removes the previous restriction that allowed agricultural producers to use only 20% of a loan for working capital. Farmers will now be able to allocate a much larger share of concessional loans to purchase seeds, fertilizers, crop protection products, fuel, rent, and other production inputs. At the same time, the interest rate on working capital loans for agricultural businesses has been reduced from 15% to 10% per year.

The government has also revised the rules for loans aimed at restoring war-damaged property. The maximum loan amount remains UAH 150 mln, but it can no longer exceed the officially documented value of the damage. Borrowers will continue to benefit from a 0.1% annual interest rate during the first two years of the loan, followed by rates of 5%, 7%, or 9%, depending on the size of the business and job creation.

Another important change is the introduction of the World Bank’s Environmental and Social Standards for all participants in the program starting September 1, 2026. However, during martial law and for 180 days after it ends, these requirements will not apply to loans for rebuilding damaged assets, energy projects, or businesses operating in high-risk war zones.