FUIB's bill payment scheme enables growers to finance up to 100% of spring purchases
The portfolio of promissory notes issued by the First Ukrainian International Bank (FUIB) amounted to a record UAH 850 million, and the cumulative increase compared to the previous period exceeded 30%. The bank remains one of the leaders in the market of promissory notes transactions and according to the updated indicators ranks second among banks by their volume.
The lion's share of the bank's portfolio is made up of promissory notes issued to agricultural producers for purchasing and paying for inputs for the planting season. For many years, the avalisation of such promissory notes has enabled both small farms and large agricultural holdings to easily pay on a deferred payment basis to suppliers of seeds, fertilisers and plant protection products, as well as distributors of leading multinational companies.
"Using the bill of exchange payment scheme, producers are able to finance their spring purchases up to 100% of the cost of goods and pay them back in autumn. This is even more profitable for the buyer, as the cost of bill avalisation is 5-6 times cheaper than a standard bank loan," the statement reads.
FUIB partners with a large number of international seed and plant protection products manufacturers (Syngenta, BAYER, SUMI AGRO, BASF, LIDEA and others), which actively use promissory notes avalised by the bank in their settlements.
