Russian Agricultural Bank increased the volume of seasonal works financing by a quarter, more than 40% of such loans were issued at a preferential rate

In 1H 2020, Russian Agricultural Bank (RusAg, the Bank) issued RUB 222.9 billion to agricultural producers for seasonal works, which is a 15% growth as compared to 2018. The total volume of loans issued by RusAg to agribusiness producers increased by 27.4% compared to the same period of last year and amounted to RUB 742.0 billion.

Thus, a third of loans issued by the Bank to agribusiness producers are loans for seasonal works, and the demand for such loans among agribusiness companies increased by 23.1% as compared to the same period of 2019.

“About 90% of corporate agribusiness borrowers are small and medium-sized enterprises (SME). During the period of the spread of coronavirus infection, the Bank did everything possible to ensure that the country's farmers did not experience difficulties with lending and provided products not only to the domestic market, but also to maintain high export rates. We coped with the task and financed the sowing campaign in a timely manner and in the required amounts. Now our key task is to create conditions for farmers to successfully complete the harvest”, Irina Zhachkina, First Deputy Chairman of the Board of RusAg, said.

During the reporting period, Russian Agricultural Bank provided farmers with RUB 97.3 billion for seasonal works at a preferential rate, including RUB 36.3 billion – to SME. Thus, over 40% of loans issued by RusAg for seasonal works are concessional loans.

Under the terms of the State Program on Agribusiness Development agricultural producers can obtain short-term or investment loans at a rate of no more than 5%. This makes it possible to increase the availability of lending to agribusiness and reduce the financial burden on agricultural producers. As part of the State Program of Concessional Lending to agribusiness enterprises, RusAg offers customers a wide range of loan products.

The Bank's financial support during seasonal works helps farmers to improve the technological side of works and, as a result, to increase productivity. Credit funds are also allocated for the preparation of material and technical base: for the purchase of spare parts, fertilizers, seeds, agricultural equipment and equipment.


Note: Financial data is under RAS