Government projects net profit for Agrarian Fund for 2016 at UAH 48 mln
Net profit of public joint-stock company Agrarian Fund for 2016 would be UAH 48 million, according to its financial plan, Board Chairman Andriy Radchenko has told Interfax-Ukraine.
"According to the financial plan for 2016, the company will see UAH 950 million of pretax profit. Net profit would be UAH 48 million, as UAH 641.4 million will be sent to pay doubtful debts of deposits in Brokbusinessbank and Radical Bank," he said.
After the audit conducted by BDO, net profit of Agrarian Fund in 2015 was UAH 410.8 million.
"If we take a look at the audit report, as of December 31, 2014, Agrarian Fund had loss of UAH 1.7 billion. The loss can be attributed Brokbusinessbank's debts. In 2015 we saw profit of UAH 410.8 million and we managed to form a reserve of UAH 640 million to cover risky debts – the loss of deposits," he said.
Radchenko said that in 2014 Agrarian Fund sent 50% of its net profits to pay dividends to the state and that 75% of the bank's profits are earmarked for same this year.
He said that BDO auditors conducted due diligence for grain using warehouse balances, instead of on-site checks.
Public joint-stock company Agrarian Fund was established in spring 2013. Its charter capital is UAH 5 billion.