EFSE provides Credit Agricole with EUR 20 mln to support agricultural producers in Ukraine

In late 2021, Credit Agricole signed an agreement with the European Fund for Southeast Europe (EFSE) within which the bank will get EUR 20 mln for the purpose of serving Ukrainian agricultural producers and farmers.

The investment will enable financing in local currency for longer-term maturities and thus contribute to business and economic recovery in Ukraine amid the still ongoing global pandemic, the bank marks in a statement.

According to the terms and conditions of the agreement, Credit Agricole agriclients can get financing at consistent interest rates and obtain technical assistance in the development of progressive agro technics and technologies.

“By joining our efforts, we will support agribusinesses in Ukraine and mid-term financing in local currency becomes more accessible to our clients. It increases the capability of agribusiness to invest in upgrading its technologies and equipment. We are pleased and honoured to be partners with the EFSE and together create available financing conditions for agribusinesses development,” said Alexandre Tchesnakoff, Director of Corporate Business and Agri-Agro at Credit Agricole Bank.

Credit Agricole Bank has in-house expertise, providing tailored services and solutions across the entire agricultural value chain. The investment is expected to facilitate over 3,000 sub-loans and support approximately 9,000 jobs.

“We are excited about this new partnership with Credit Agricole Bank. Partnerships with like-minded institutions, such as Credit Agricole Bank, are essential to helping the EFSE pursue its mission of expanding access to sustainable finance for local businesses, and in this case, particularly to agri-businesses. By facilitating loans in local currency, we are, together, investing in the stability and the long-term viability of agricultural businesses, which are one of the main drivers of Ukraine’s economy,” said Klaus Müller, EFSE Board Chairperson.

Through this investment, Credit Agricole Bank is expected to contribute towards the achievement of Sustainable Development Goals: SDG 2 (Zero Hunger), SDG 8 (Economic Growth) and SDG 9 (Industry, Innovation and Infrastructure).

In December, the World Bank provided a EUR 300 mln loan to Ukraine to promote reforms implementation, including finance for small farmers.

Earlier Cargill Financial Services International, Inc. approved a EUR 250 mln loan for Ukraine.