"Pivdenny" Bank offers comprehensive solutions for agricultural producers

Despite the full-scale war, which has been going on for two years, "Pivdenny" Bank has continued to support agricultural producers and remains a reliable financial partner, offering a tailored range of products and services. The Head of Support Services for Agricultural Enterprises and Oil Market Operators at "Pivdenny" Bank, Semen Syniakov, talks about support programmes, changes in requests since the beginning of the war and individual solutions.

"As a rule, farmers need three main areas of financial support. The first is to replenish working capital for fieldwork and cover cash gaps in the sales chain. The second is financing current liabilities with suppliers (for fuel and lubricants, crop protection products, fertilisers, seeds, and energy). The third is investment expenditure on the purchase and maintenance of agricultural machinery, investments in logistics, storage and processing. Accordingly, no matter how many financing programmes banks offer, all aim to meet these needs. "Pivdenny" Bank understands the basic needs of agricultural producers, so our programmes allow us to meet the full range of potential customer requests," – says. Semen Syniakov.

To replenish working capital, the Bank offers revolving credit lines for a borrower or a group of borrowers for up to three years with an adapted seasonal schedule of limit reduction or without a schedule, but with tranche turnover.

Current settlements with suppliers are financed by short-term credit lines or documentary transaction limits (aval, guarantee). The Bank proposes to finance investment costs through non-revolving credit lines or a financial leasing programme for up to five years with repayment schedules adapted to the periods of crop sales.

"In general, any financing programme for agricultural producers is quite flexible. Usually, clients are offered a comprehensive solution that combines various financing programmes (from working capital to documentary transactions and settlement instruments) under one master agreement. Comprehensive solutions allow the Bank's clients to save on the costs associated with arranging collateral, insurance, and commissions. And, more importantly, they allow you to get the maximum coverage of your financial needs within one bank and one agreement," – says the Head of the branch.

According to him, since the start of the war, the needs of agricultural clients have changed, and working capital financing has become a clear priority, with most clients temporarily froze their investment plans.

"This year, the greatest demand is for financing cash gaps caused by logistical obstacles to exports, namely closed deep-water seaports, shelling of infrastructure on the Danube, a set of measures by our western neighbours that restrict our exports, and hopes for a change in the price environment of the agricultural market, on the other hand. The "Affordable Loans 5-7-9%" programme is very popular, as it provides farmers with additional support and, secondly, with funds in hryvnia at the most attractive interest rates on the market, thus mitigating the risk of devaluation. As of today, the Bank's portfolio under such programmes is close to UAH 4.0 billion. In any case, we understand the needs of each client, as we have extensive experience in the agricultural sector – from small farms to the largest latifundists in Ukraine – and always offer an individual approach and prompt decision-making," – emphasised Semen Syniakov.

Information about the Bank

"Pivdenny" Bank is one of the leaders in the Ukrainian financial market, ranking third in the group of Ukrainian banks with private capital in terms of assets. According to the National Bank of Ukraine, "Pivdenny" has been classified as a systemically important bank for the fifth consecutive year.

For 30 years, "Pivdenny" has been a reliable financial partner for private clients and businesses. The Bank specialises in servicing the large and medium-sized corporate business segment and focuses on financing products, comprehensive services for foreign economic activity and effective solutions for cash management of enterprises and their owners.

In 2023, Delo.ua and the magazine "Top 100. Ratings of the largest" ranked the Bank among the five leading banks with the best credit conditions.