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August 1 2001, 14:01 APK-Inform

Allocation of additional preferential credits to agricultural producers was under a question mark

Allocation of additional 125 million hryvnyas for compensation of credit's interest rates for preferential crediting of AIC was under a question mark. According to some sources, the Vice Premier paid attention to facts of abuses that happened during preferential crediting. In particular, in many cases banks provided credits to agricultural producers for 40-45 percent interest rates, which is higher than market crediting rates. As a result, the process of providing preferential credits in some oblasts was stopped.

At the same time additional 125 million hryvnyas of budget funds for compensation of interest rates of commercial banks' credits were allocated. But it is possible to presuppose that opportunities for abuses in preferential crediting will somewhat decrease.

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