The role of the PCG in increasing acces to finance to small farmers
Leah Soroka
Access to finance remains limited for Ukrainian farmers, especially for small agriculture producers. The lifting of moratorium will initiate a demand for land purchases by agricultural producers of all sizes, but not all farmers will be able to finance their demand. PCG scheme will enable access to finance for small farmers and facilitate the purchase of land by covering some portion of the losses incurred by lenders when SME borrowers default on loans. In addition to the introduction of the PCG, an intensive program for banks to understand the livestock and other business models and a program to improve these farmers’ farm financial literacy to help them communicate with banks, will facilitate increased lending to small farmers. The establishment of PCG scheme, training and capacity building in agricultural finance sector in the country will boost agricultural development in Ukraine.
Event: Land Governance in an Interconnected World_Annual World Bank Conference on Land and Poverty_2018
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