Kiev, Ukraine, April 3, 2012—IFC,
a member of the World Bank Group, is partnering with Credit Agricole and
Bayer to make high-quality crop protection products more affordable for
independent farmers and smaller agricultural companies, helping Ukraine
boost its agricultural productivity.
IFC and Credit Agricole’s subsidiary in Ukraine have developed a risk-sharing
facility that will enable farmers to buy crop protection products - including
pesticides and herbicides - on credit from industry leader Bayer. The purchases
will be paid in full once the year’s crops are sold. The risk sharing
facility will cover up to $35 million of seasonal payment obligations to
Bayer, half of which IFC will guarantee.
“Credit Agricole in Ukraine focuses on financing agriculture,” said Larisa
Bondarieva, Credit Agricole’s Director for Corporate Business. “Our
task is to provide farmers with relevant financial tools to meet the specific
needs of their businesses. Our agreement with IFC is a key step towards
strengthening cooperation with agricultural companies, which will contribute
to increasing the productivity and profitability of agricultural businesses.”
Rufat Alimardanov, IFC’s Country Manager for Ukraine and Belarus, said,
“Adding a new bank to our joint financing program will help Bayer increase
awareness among farmers about financial options at a time when access to
finance for Ukrainian farmers remains challenging. More access to crop
protection products will also result in higher crop productivity, a key
for global food security.”
Last year IFC partnered with Bayer and Raiffeisen Bank Aval to develop
a risk-sharing facility to cover up to $140 million of seasonal payment
obligations to Bayer, of which IFC pledged to guarantee up to half. Crop
protection products are key components for growing healthy crops and increasing
yields. However, because they are used later in the growing season, farmers
often have little money and are forced to settle for lower quality products.
This results in lower yields and may have an adverse impact on the environment.
IFC is committed to helping Ukraine maximize its agribusiness potential
and has so far invested over $500 million in the country’s farming sector.
In agribusiness, IFC supports the entire value chain, from farm production
to collection, processing and distribution. It also offers an extensive
advisory program, including projects focused on improving food safety standards,
maximizing resource efficiency and developing the agri-finance and agro-insurance
market in Ukraine.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while driving
our investments to an all-time high of nearly $19 billion. For more information,
About Credit Agricole
For more information, visit http://credit-agricole.com.ua
For more information, visit www.bayer.ua