Farmers do not believe that cheap credit will save small farmer

Аграрии не верят, что дешевые кредиты спасут мелкого фермера

Recently the Prime Minister of Ukraine Alexey Goncharuk said that the government is preparing to launch a program to support small and medium enterprises, which will be from February 1, 2020 “the program is very simple – to stimulate the emergence of new entrepreneurs, to encourage the return of our migrant workers home and open a business here,” said the head of government. The loan amount is $ 1.5 million. for 5 years with interest rates from 5 to 9% per annum, depending on level of income.

“Whether the government’s initiative to support small producers, particularly in agriculture?” – thinking of the Association of breeders of Ukraine.

“The initiative, of course, good. However, the issue must be approached globally. First of all, the authorities need to ensure that people would not go abroad, since labour migration is growing. And begin to encourage the Ukrainians to engage in business is not necessary with cheap loans and create an appropriate tax environment for small businesses to bring them to the standard of developed countries, the Euro-principles, to absolve the Ukrainians of the tax shackles. Doubt the transparency of this initiative. It’s one thing to lend an already existing business. But to just give the man some mythical business plan – are you serious? Remember the classic, who said that there are about 400 relatively honest ways of obtaining money. In this case, created a front company, which will be thousands of “draw” these business plans and then “their” people will get money from them. That is, it can lead to the emergence of corruption schemes,” – said the Association.

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