Information for fruit and vegetables business in CIS
Banks have money to loan for rural economy but no guarantees that this money will be paid back
The APK-Inform reports that the seminar devoted to Ukrainian agrarian policy study also attracted banks to participate.
In fact, the representative of AVAL bank said that in 2001 the loan portfolio of the bank for farm sector was about US $340mn. The loan portfolio for the year 2002 is planned to be about the same.
From the aforementioned amount of loans 30% were allocated for food processing industry and 70% for the farmer himself.
Bank representatives believe that banks have money to loan but the key problem is that loan takes have no way to prove that they will pay the loan back and produce any kind of guarantee thereof.