OREANDA-NEWS. February 25, 2011. Government in no way refuses to compensate farmers the "costly" loans of past years. As the Cabinet noted, the compensation is based on a competitive base to agricultural enterprises that have received loans in 2007-2009 in national and foreign currencies according to the agreements concluded, for borrowers in 2010 - provided that the amount of interest does not exceed 25% in UAH per annum, and foreign currency 16% per annum.

In addition, this year the government will compensate the interest on loans provided, that their amount does not exceed 21% in UAH and 13% in foreign currency per annum.

Officials believe any speculation on the topic of compensation of agricultural loans are inexpedient and even cynical, after all, according to the Cabinet last year only the Stabilization fund allocated from its budget over 1 billion UAH. Altogether, in 2010 the government has supported with money from this fund our farmers on nearly 3 billion UAH.

Will the Cabinet allocate funds from the Stabilization Fund budget to compensate farmers credit this year? This question of the "Governmental Courier" asked the Director of the Ukrainian club of agrarian business Volodymyr Lapa.

"This year it will be very difficult to find additional funds from the reserve fund, but it is possible. The difficulty in resolving this issue does not mean that complete rejection will have place", he said.

According to experts, the government should approach those to whom to compensate the rates on loans and to whom not.

"On the background of the crisis, when the loans were too expensive, now the macroeconomic situation is much better - loans are offered at rates much reduced. That is why not only the government but also all the taxpayers should know, how they say, in person, who gets the preference of the state. Such information is rather transparent and publicly opened in the western countries. This experience should be taken over by us"- V. Lapa notes.

Thus, the state this year will not leave the farms alone with their problems. As for optimizing the list of those entitled to compensation, officials probably need to think seriously.