SFGCU to be audited for capacity to repay a Chinese loan

The state auditors will verify the capacity of the State Food and Grain Corporation of Ukraine (SFGCU) to settle accounts with the state for the fulfilment of the guaranteed obligations, the Minister of Finance of Ukraine Serhii Marchenko announced at the Cabinet's meeting on Feb. 9.

The audit will be conducted since the Ministry of Finance paid UAH 2.5 bln of the Chinese loan provided to the SFGCU by Eximbank in early February. The Ministry replaced the Corporation in this transaction.

"Auditors are to investigate the intended use, timeliness of repayment of loans and credits attracted under state guarantees and the legality of expenditure of the SFGC funds, in particular the budgeted expenditure of funds approved by the Ministry of Finance," explains the minister.

Serhii Marchenko adds that the audit should determine the SFGCU ability to fully repay debts to the state for performing its guarantee obligations. He adds that in the first half of 2022 the Ministry of Finance submits to the Cabinet of Ministers a draft decree that sets out a mechanism for the State Audit Service (SAS) and the local body to conduct a state financial audit.

For context, in March 2012, the SFGCU received a USD 1.5 bln loan from the Export-Import Bank of China under a Ukrainian government guarantee for grain supplies to China.