- ASTARTA and OTP Bank entered into cooperation and partnership agreement for lending to agricultural producers
ASTARTA and OTP Bank entered into cooperation and partnership agreement for lending to agricultural producers
According to the conditions of the partnership program, agricultural producers can obtain a loan of up to UAH 15 million from Astarta-Kyiv agri-industrial holding.
Astarta partner interaction center continues to expand the range of offers and possibilities for agricultural producers, which the farmers may enjoy to enhance their production efficiency and potential crop sales. In order to achieve this goal, Astarta and OTP Bank entered into cooperation and partnership agreement for lending to agricultural producers.
According to the conditions of the partnership program, agricultural producers can obtain a loan from OTP Bank on beneficial conditions against a future crop supply agreement with Astarta-Kyiv agri-industrial holding. The feature of the program is an option of agricultural insurance with no comparables on the market, with the approach which is different from the traditional insurance product. Therefore, the partners offer full protection for future crops of agricultural producers.
Based on the global experience in lending to agricultural producers, OTP Bank, in cooperation with Astarta, implement a simplified and standardized approach to financing the farmers. The partners have developed a special simple mechanism of replenishing working capital of farmers by expanding the options of such financing through favorable requirements. Maximum loan amount may go up to UAH 15 million. Lending for obtaining funds of up to UAH 3 million is possible without a collateral.
To obtain a loan, an agricultural producer needs:
• to obtain approval from Astarta-Kyiv of the conditions of future crop supply (crop, quantity, supply term, supply basis);
• to obtain a prior decision of OTP Bank on granting a loan;
• to provide the bank with full set of documents for loan arrangements and to open accounts (UAH and/or USD);
• to enter into a future crop supply agreement with Astarta-Kyiv;
• to enter into a loan agreement with OTP Bank with a reduced interest rate and to obtain the loan funds;
• to supply grain to Astarta-Kyiv and to receive funds at the market price.
Astarta partner interaction center has been established for developing the eco-systems of businesses related to agricultural production and trade in agricultural products, providing resources to agricultural producers, services and consultations. By adding new participants to the partnership program, the Center offers the farmers more integrated options for supporting and developing their business. Subsidiaries and affiliates of Astarta also participate in the partnership programs, in particular, they offer silo services, customer-owned sugar beet processing, crop purchase, insurance, software for agricultural business management (AgriChain) and other options as the partners may require.
OTP Bank Joint-Stock Company is one of the largest Ukrainian banks with foreign investments, which is a renowned leader of the country's financial sector. It has been represented on the market since 1998, has sustainable reputation of a socially responsible, reliable and stable structure offering European-quality services to customers. The bank provides full range of financial services for corporate and private clients, as well as for representatives of small and middle-seized business. It is 100% owned by the largest Hungarian bank OTP Bank Plc.
Since 2019, OTP Bank is included by the NBU decision in the list of systemically important banks of Ukraine having a significant impact on the development of the country's financial system.
In Ukraine, OTP BANK JSC is the leader of OTP bank group registered by the National Bank of Ukraine, which also includes OTP Capital Asset Management Company LLC, OTP Leasing LLC, OTP Factoring LLC, Free-Flight Open Pension Funds Private Pension Fund, and OTP Pension Private Pension Fund.
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