Banks see no wave of defaulters among farmers, FUIB reports

Defaults among Ukrainian agricultural companies remain isolated cases, and the credit portfolio quality in the sector continues to be high, stated Pavlo Prytyko, Director of the Mid-Corporate Banking Department at FUIB, during the international Grain Ukraine 2026 conference.

According to him, the banking system is currently not recording any significant deterioration in farmers' payment discipline.

"Everything is fine in the agricultural sector in terms of companies' resilience in meeting their obligations. Overall, we see rather good portfolio quality across the banking system. At FUIB, it is one of the best among the major players. We have almost no defaults at all," Prytyko said.

At the same time, he cautioned that developments in the Middle East could affect the financial results of agricultural companies next season. According to him, rising production costs in the absence of a corresponding increase in agricultural prices could lead to a so-called "price scissors" effect (price squeeze).

Prytyko noted that most farmers purchased key inputs for the sowing campaign in advance, which is why the current season is passing relatively stably. However, preparation for the next production cycle may require additional financing.

"According to our estimates, production costs will rise. This will lead to an increased need for working capital among agribusinesses," he noted.

Despite this, FUIB does not expect farmers to face difficulties in accessing financing.

"There is liquidity in the banking system, it is well-capitalised, and there is a willingness to invest in this sector," Prytyko added.

According to him, banks continue to analyse the financial condition of agricultural companies and stand ready to support the industry should the demand for credit resources increase.