The Agricultural Policy and Food Ministry of Ukraine has drawn up a procedure on credit rate compensation for farmers under the credit cheapening program.

According to a draft resolution published on the ministry's website, UAH 300 million is foreseen in the national budget for the support of agriculture via the cheapening of credits.

All companies, irrespective of their form of ownership, are eligible for compensation.

"Compensation is provided in the national currency in the size of accrued and credit rates paid this year by borrowers for the use of credits reduced by 16% and in foreign currency – at 6% per annum," reads the draft.

The ministry plans to distribute the funds between the agricultural development departments of regional administrations in proportion to the average annual gross agricultural production over the past three years in the region in question.

Tender commissions at regional administrations will obtain compensation principally for companies which have annual sales revenue of UAH 10 million over the past year. Companies which breed cattle will also receive compensation.

As reported, the Ukrainian parliament recently passed amendments to the national budget for 2015 on the provision of an additional UAH 550 million to support agriculture.