A $100,000 loan repayment program made possible by the Worldwide Foundation for Credit Unions (WFCU) Displacement Fund of Ukrainian Credit Unions has already provided targeted aid to 100 farmers facing a food security crisis caused by Russia’s large-scale war in Ukraine.
Since the program was launched in June through the Agricultural Producer Credit (CAP) Project of the World Council of Credit Unions and Ridnia, a Ukrainian NGO, 100 farmers have been reimbursed on 10% of their principal repayments for agricultural loans they have taken out to Ukraine. credit unions from February 24 to April 30. These types of loans usually average 50,000 UAH (1,700 USD).
Podolska Persha Closeska Kredytna Spilka (PPFKS), a credit union based in the city of Kamianets-Podilskyi, western Ukraine, which partners with the CAP project, specializes in providing affordable agricultural loans through through a simple application process.
Two farmer members of PPFKS who have received loans from the credit union since the start of the war have already benefited from the repayment scheme.
Boris Sohatiuk, who runs a poultry farm, has faced a significant increase in feed and transport costs, as well as a reduction in poultry sales due to the war. This combination contributed to a loss of profits.
“Nevertheless, thanks to the compensation (reimbursement) received, I was able to honor my credit debts more quickly,” said Sohatiuk.
For Volodymyr Prysiazhnyi, who grows soybeans and buckwheat on his 20-acre plot, the war has meant rising fuel costs and uncertainty about future selling prices. But he managed to stay afloat thanks to the reimbursement fund and remains optimistic.
“Such support from the global credit union community inspires hope for the future,” Prysiazhnyi said.
The next stage of the program will offer a refund to farmers who received agricultural loans from Ukrainian credit unions between May 1 and June 30.
The $100,000 made available through the program is expected to reimburse at least 585 farmers.