OTP Bank issued the first loan under USAID grant project to Odesa agricultural producer
The first loan from OTP Bank within the USAID Project “Financial Sector Reform” grant program was received by the agricultural producer APC “Rodyna” (Odesa region). The loan agreement was signed on October 18, 2023.
“Currently, this is the most favorable price offer among loan programs for small and medium-sized businesses. Thanks to the financial burden reduction, the clients targeted for the program have the opportunity to receive a loan in a larger amount, in other cases, savings on interest make it possible to direct money to the formation of larger volumes of production stocks, improve the calculations quality and increase the salary of employees. In the realities of war, business representatives pay attention to this as a priority,” said the director of the corporate sales department for small and medium-sized businesses of OTP Bank, Olga Volkova.
Agricultural production cooperative “Rodyna” received a loan in the amount of UAH 3 million without collateral to replenish working capital for conducting its core business. The loan is issued for a period of 36 months, and the borrower pays only 7% per annum for the first 12 months. Since 2000, APC “Rodyna” has been engaged in agriculture on 1,600 hectares of land in Izmail district of Odesa region. During the war, this region is one of the main routes for the export of agricultural products to foreign markets and has recently been subject to massive missile strikes by russia.
“Agricultural producers are traditionally the focus of OTP Bank’s attention, for this purpose the Bank has a specialized division Agrofabrika, which implements a separate approach to the analysis and financing process of agricultural clients. Therefore, we are constantly looking for ways to provide more support to agricultural enterprises in times of war. An important factor in selecting the company to participate in the program was the large number of women among the cooperative’s participants, which is one of the directions of the SME financing program with the USAID grant participation,” O. Volkova emphasized.
To remind, in October 2023, OTP Bank received a grant from the USAID Project “Financial Sector Reform” for USD1.2 million for lending to Ukrainian businesses. Within the framework of the program, the bank will provide targeted financing to small and medium-sized businesses. The grant money will be used to compensate the difference between the client’s interest rate and the market one.
The conditions of the program include companies that have changed their location of business, or whose assets have been damaged as a result of military operations, representatives of critical sectors of the economy – such as agricultural production, logistics, processing, packaging, as well as enterprises with a majority of women in the business ownership structure and all factoring agreements with new clients.