Volodymyr Bugai, a farmer in Ukraine’s Mykolaiv region, faced significant challenges after his fields were occupied for nine months during the early stages of Russia’s invasion. Upon returning, he found it difficult to secure financing for the 2025 planting season due to insufficient collateral. Ukrgasbank informed him about the Partial Credit Guarantee Fund (PCGF), which reduced collateral requirements and offered loans at affordable rates. This support enabled Bugai to resume planting wheat, barley, peas, and rapeseed on his land.
The PCGF was launched in early 2024 by the Government of Ukraine with backing from the European Union and the World Bank Group. Its main objective is to help banks provide loans to small and medium-sized farmers while supporting ongoing land reforms.
Oleg Prykhodko, Chairman of PCGF’s Management Board, stated: “We are always there for farmers, especially in tough times when support is most needed.”
Anatoliy and Lesya Vilkun operate a family farm in Ukraine’s Odesa region. Their farm has struggled not only due to war but also because of unpredictable weather conditions that affect harvests. Anatoliy explained: “Our farm was established in 1993 by my father. 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.” Lesya added: “Since 2022, the farm's main problem has been a lack of working capital. 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 sought assistance from a bank participating in the PCGF program.
International partners have contributed over $10 million to support the PCGF initiative. With additional funding from the Ukrainian government included, its authorized capital now totals $20 million.
The fund provides guarantees covering up to 80% of borrowers’ obligations for both investment and working capital loans through Ukrainian banks. Eligible borrowers can access loans with terms ranging from three years for working capital needs up to ten years for land purchases; each borrower may receive up to $800,000.
To further promote awareness among smallholder farmers about available financial products under this program and how they can apply for them through participating banks, IFC—a member of the World Bank Group—has initiated an information campaign across Ukraine. The IFC is also collaborating with financial institutions on introducing new products backed by PCGF guarantees tailored specifically for land acquisition, equipment purchase, and working capital needs.