IFC is ready to attract up to $ 3 billion in the Ukrainian agricultural sector

International Finance Corporation has the opportunity to attract investment until 2024 in response to the crisis and for a quick and sustainable economic recovery.

According to IFC Regional Manager in Ukraine, Jason Pellmar, Ukraine is one of the important countries for IFC in the Europe and Central Asia region.

Over the past 16 years, IFC has allocated over $ 3.3 billion of long-term financing to the Ukrainian economy, including $ 1 billion to support agribusiness.

Jason Pellmar noted that the amount of financing will depend on how successfully Ukraine will implement the political reforms necessary to accelerate economic growth, including land reform and reforms in the banking sector.

The IFC Regional Manager also said that IFC, together with the World Bank, will support the creation of a land financing market in Ukraine. The World Bank Group is working on the development of a partial credit guarantee mechanism for the introduction of bank lending for the purchase of agricultural land.

Jason Pellmar recalls that in addition to direct investment, IFC has developed an innovative financial instrument – agricultural receipts, which are a pre-season financing tool and provide a guarantee of the future harvest.

According to Pellmar, today more than 2 thousand farmers have used the tool and issued 4 thousand receipts worth more than $ 1 billion, and IFC continues to support and encourage Ukrainian farmers to use agricultural receipts to improve their business.

Jason Pellmar, on behalf of IFC, expressed the hope that the organization will also have other opportunities to support Ukraine’s agriculture in the future, through cooperation with both current and future clients.

Source: inventure.com.ua