Government of Ukraine Cheaper Loans to Farmers
OREANDA-NEWS. February 22, 2011. Some media messages instead of using facts continue to use the method of twisting the facts, which is particularly outrageous when it comes to socially sensitive issues.
"The government refused to compensate the "expensive" credits to farmers" - this was the title of today’s information from one of Internet sites, which stubbornly refuses to be legalized in Ukraine as the media not to take responsibility for the false message. In that, if we may say, "information" with reference to the Cabinet Resolution No. 96 dated February 7 this year, is said "that the Cabinet has lowered the reimbursement rates for loans of farmers at a rate of 25% to 21% in foreign currency from 16% to 13% for 2011".
Unlike the previous government, which practiced the classification of State Statistics Committee data regarding the state of the economy, every decision of the Cabinet is now available to the public, particularly on the government portal.
"Compensation is provided on a competitive basis to Agribusiness Enterprises <...> that have received loans:
in 2007 - 2009 in local and foreign currency according to contracts;
in 2010 - provided that the amount of interest <...> does not exceed in local currency 25 percent per annum, and in foreign currency - 16 percent per annum;
this year - provided that the amount of interest <...> does not exceed in local currency 21 percent per annum and in foreign one - 13 percent per annum"- the document amending the ordinance number 794 dated 11.08.2010 says.
In other words, the Government of Mykola Azarov, first, continues the policy of state support for domestic manufacturers, and second, stimulates the process of reducing the cost of servicing loans, and third, minimizes the corruption component of the process.
Finally, if interest rates on loans this year, due to weighed economic policy of the Government are decreased, how may it be compensated following the past year norms, ie, more than the market determines?
Regarding the latter: it is generally known that over-suspicious interest rate loans almost definitely points to "roll back" in the relationship of loaner and creditor. It is strange that this was not noticed by the current so-called opposition media, when the previous government had loans at 30% per annum under government guarantees.
Equally cynically looks the frankly false statement that the Cabinet "refuses to compensate farmers" the last year, more expensive loans. Especially on the background of the realities of the last year government financing the agricultural sector. It is known: summer 2010 the Cabinet of Ministers allocated from the Stabilization Fund budget nearly 3 billion UAH to cheaper the loans and investment projects in agriculture.
In particular, 1.012 billion was allocated to reduce credit interest rate, 1 billion - for partial compensation to farmers for the cost of construction and reconstruction of livestock farms and complexes, 200 million - to create wholesale markets, 259 million - state support for crop production, 500 million - for partial reimbursement of purchases of complicated equipment of domestic production and 100 million - to protect and improve land fertility.
Комментарии