Public joint-stock company Agrarian Fund and bank Ukrainian Capital start joint program intended to finance agricultural producers.

The press service of the Agrarian Fund reported that UAH 400 million will be provided in the 2016-2017 agricultural year. The share of the bank should be UAH 100-200 million, and the Agrarian Fund would allocate the rest of the funds.

Agrarian Fund Board Chairman Andriy Radchenko said that the program is targeted at small and medium-sized enterprises with net revenue of up to UAH 10 million in the past year.

"The joint financing program we start with bank Ukrainian Capital is a pilot project for the Agrarian Fund. Now the program is being designed to start before the autumn winter crops planting campaign. We hope that this autumn we will be able to tune it to meet the needs of clients," Radchenko said.

The approximate cost of the financial resources for farmers in the national currency will be 12% per annum.

The funds will be provided to cover expenses linked to purchase of fuel and lubricants, seeds, fertilizers, crop protection agents, spare parts to repair agricultural and irrigation machinery and equipment, pay for repair services, soil cultivation, sowing, harvesting and other works.

The Agrarian Fund said that the implementation of the program is possible after conducting an audit at bank Ukrainian Capital. Radchenko is on the bank's supervisory board.

If the program were a success, large state-run banks, such as Ukrgasbank, Oschadbank and Ukreximbank, will be attracted to the program.

Bank Ukrainian Capital was founded in 1992.

The bank ranked 27th among 109 operating banks in the country on January 1, 2016 by total assets (UAH 595.649 million), according to the National Bank of Ukraine.