As a result of the tender conducted by KfW TA Consult was awarded a contract for the implementation of the project Consulting Services for Ukrainian Banks on the Agricultural Loan Portfolio Management. First activities within the project started on 25 August 2015.

Although Ukraine’s banking system is relatively well-developed, access to finance remains limited, especially for small and medium enterprises. In the 2013-14 Global Competitiveness Report, 16.7% of respondents identified access to finance as the number one obstacle to doing business, ahead of corruption and inefficient public administration. The events of 2014 that reduced liquidity and increased external risks have hindered even further access to financial resources.

The main purpose of the consulting support is to provide access to finance for SMEs in agricultural sector, increase the share of agricultural loans in SME portfolio of the Ukrainian banks participating in seminars and improve the agricultural loan portfolio quality through the improvement of the skill level of the banks' officers. With this purpose TA Consult will provide assistance in improvement of skills of the relevant banks’ officers.

About 15 banks will be covered by consultancy services and about 30 banks’ officers will be trained on subjects stipulated below:

• Financial and economic analysis of agricultural clients' business on a cash flow basis considering all their activities and depending on the existing conditions in the banking sector;

• Cash flow/production output forecast;

• Risk management techniques inherent to the agricultural sector;

• Agricultural loan portfolio management and monitoring;

• Credit model;

• Collateral evaluation and policy;

• Specifics of development of loan products;

• Basic knowledge of the agricultural production cycle typical for the Ukrainian agricultural sector.

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