Volodymyr Bugai founded his farm, Maran, in Ukraine’s Mykolaiv region in 2019. But in the early days of Russia’s invasion, he almost lost his entire business when his fields were occupied for nine months.
STORY HIGHLIGHTS
- Russia’s invasion has exacerbated the financial challenges for family farms and small-scale agricultural operations across Ukraine.
- With support from the World Bank Group, Ukrainian banks are offering loans and guarantees to smallholder farmers through the Partial Credit Guarantee Fund.
- To date, World Bank Group-backed programs have helped tens of thousands of farmers across the country receive affordable loans and other financial products to keep their businesses afloat and reduce disruptions to the planting and harvesting seasons.
We left with my family at the end of March 2022. Our territory was liberated on November 11, the same year. The losses were significant. My grain, seeds, fertilizers, and plant protection products were all taken away. Some of our equipment was also damaged. The fields were overgrown with weeds, and all the crops died.
Today, Volodymyr cultivates wheat, barley, peas, and rapeseed on 215 hectares of land, though a small part of his fields still needs demining. Upon returning home, he wasn’t sure he’d be able to rebuild.
Seeking financing for the 2025 planting season, he approached Ukrgasbank but lacked the collateral - his own savings and equipment - to get a loan. That is when the bank’s staff told him about the Partial Credit Guarantee Fund (PCGF), a new program that reduced the collateral requirement by half and provided a loan at an affordable interest rate. With this assistance, Volodymyr was able to plant his crops and rebuild.
Volodymyr Bugai cultivates wheat, barley, peas, and rapeseed on 215 hectares of land.
PCGF’s main goal is to serve as a reliable support for small agricultural producers.
“We are always there for farmers, especially in tough times when support is most needed," says Oleg Prykhodko, Chairman of PCGF’s Management Board.
Launched in early 2024 by the Government of Ukraine, with support from the European Union and the World Bank Group, the PCGF helps banks lend to small and medium-size farmers and to support ongoing land reforms.
Keeping agri-resilience during the war
Even more than the war, extreme weather has greatly affected the family farm of Anatoliy and Lesya Vilkun.
Situated in the Odesa region, the siblings cultivate 450 hectares of land, where they grow wheat, barley, rapeseed, peas, and sunflowers.
With support from the World Bank Group, Ukrainian banks are helping small farmers like Anatoliy and Lesya Vilkun access loans and guarantees. This support, through the Partial Credit Guarantee Fund (PCGF), helped them bring their family farm back to life. Watch their story.
“Our farm was established in 1993 by my father," explains Anatoliy Vilkun. “Odesa region,it’s a fickle climate zone. We only get a good harvest once every three years. One year, you make a profit, but the next two years, you break even or operate at a loss.”
The war also affected the farm.
“Since 2022, the farm's main problem has been a lack of working capital,” adds Lesya Vilkun. “While considering taking a loan to buy new machinery, we lacked collateral. We didn't even have 20% for a down payment on the equipment.”
The Vilkuns turned to a bank that partners with the PCGF for assistance.
We received a seven-year loan at 7% annual interest in local currency, with no collateral and no 20% down payment. In part, thanks to the Fund's guarantee, we were able to buy equipment for high-quality soil cultivation and precise seed sowing.
Backed by the Ukrainian government, the European Union, and the World Bank Group, the PCGF has received a significant boost from international partners, amounting to over $10 million. With Ukrainian government support included, the Fund’s authorized capital now stands at $20 million, according to Oleg Prykhodko.
This financial foundation has made it possible for the Fund to issue guarantees totaling over $77 million. Through co-financing arrangements, the Fund can help unlock up to UAH 6 billion in loans for Ukrainian farmers—a sum equivalent to $145 million. Additionally, the EU and the World Bank Group have helped us implement the best practices of guarantee institutions in Europe and around the world.
Anatoliy and Lesya Vilkun cultivate 450 hectares of land, where they grow wheat, barley, rapeseed, peas, and sunflowers.
How does the Fund operate?
The PCGF offers guarantees to Ukrainian banks, covering up to 80% of a borrower's obligations, for both investment and working capital loans. Eligible borrowers can receive loans for up to three years for working capital, up to seven years for investment financing, and up to 10 years for land purchase, with a maximum loan amount equivalent to $800,000 per borrower.
To support the PCGF development, IFC—a member of the World Bank Group—launched a nationwide awareness campaign for smallholder farmers, including information on how to apply and the financial products offered by the PCGF-participating banks. Now, IFC is working with financial institutions to introduce new and adjust existing financial products backed by the PCGF guarantees for land, equipment, and working capital finance for small farmers.
Thanks to the Fund's guarantee, we were able to purchase high-quality, fast soil cultivation equipment. Everything has improved in our farming processes because the machinery is new and modern.
Watch how the PCGF helped young farmer Pavlo Koen from Ukraine’s Odesa region secure financing to grow his greenhouse business.
Blogs
WHAT'S NEW