Non-bank financial institutions will issue loans to farmers under state guarantees — how this will expand access to financing
The Partial Guarantee Fund has opened a pilot for credit unions and financial companies: up to 50% guarantees, an 80 million UAH limit, and work with farmers in the community — what this means for small farms.
By Tetiana Suchkova-Ladik
March 17, 2026 · 2 min read
What was adopted and why it matters
The Partial Credit Guarantee Fund for Agriculture has completed the selection of non-bank financial institutions that, as part of a pilot, will provide loans to small agricultural producers with a land bank of up to 500 ha under partial state guarantees. The Ministry of Economy reported this.
How the mechanism will work
The mechanism provides for the Fund's portfolio guarantees — up to 50% of outstanding loan debt. The total guarantee limit in the pilot is UAH 80 million. This reduces credit risk for non-bank lenders and makes loans more accessible to farms that traditionally do not have ties with banks.
"Small farmers often have limited access to credit resources. That is why it is important to involve not only banks in financing farmers, but also credit unions and financial companies that work directly in communities and know farmers' needs well"
— Taras Vysotsky, sectoral Deputy Minister
Who has already signed on
The Fund agreed to cooperate with five non-bank institutions — cooperation and guarantee agreements have been signed. Pilot participants:
- Financial company "Aktivitis" (Kyiv)
- Credit Union "Kredit‑Soyuz" (Cherkasy)
- First All‑Ukrainian Credit Union, PVKS (Kamianets‑Podilskyi, Khmelnytskyi region)
- Credit Union "Vyhoda" (Stryi, Lviv region)
- Church Credit Union "Anisiia" (Lviv)
Context and endorsements
Previously the Fund worked only with banks; it is now testing a model of expanding the financial network through local credit unions and fintechs. A separate focus is strengthening the institutional capacity of these institutions — they will receive expert support from IPC GmbH under the technical assistance of the World Bank Group and the EU. This adds international expertise and provides social proof of the initiative's seriousness.
Practical effect for the farmer
For an agricultural producer this means: faster access to credit, a greater number of lenders in the community, and potentially lower costs to find financing. For the lender — lower risks thanks to partial guarantees and support in building capacity to work with the agricultural sector.
Next steps and risks
If the pilot proves effective, the Fund may expand the program and involve more credit unions and financial companies. At the same time, effectiveness will depend on participants' risk management, the quality of the loan portfolio, and the transparency of borrower selection.
Conclusion
This step is not a headline-grabbing reform but a pragmatic expansion of access to funds in communities. The question now is one of results: will the guarantees translate into real loans and the development of small farms, rather than just statistics on paper?
