Financial literacy training for agricultural producers in Ukraine
TARGET GROUP: Agricultural producers, enterprises, bank officers, and trainers
OBJECTIVE: Facilitate access to finance for agricultural SMEs by increasing their financial literacy and financial management skills. In addition, increase the share of agricultural loans in the SME portfolio of banks, which could be achieved by applying the train-the-trainer approach.
ACTIVITIES AND RESULTS: The EFSE DF supported three training sessions. The first session was attended by four agricultural enterprises and eight bank officers representing five banks – clients of NABU partner banks. The training provided financial knowledge on topics such as loan applications, over-indebtedness, understanding loan terms and conditions and their impact on the cash flow and profitability of the business, and further (financial and non-financial) requirements of banks towards borrowers. At the end of the training, the farmers received useful handouts.
The second training was attended by representatives of 13 agricultural enterprises and eight officers from five banks. The training focused on discussing the current problems of farmers, banks’ existing practices in agricultural lending, and communication with farmers.
The third training used the train-the-trainers approach with the objective of shedding light on the specifics of agri-businesses. Twelve representatives from eight banks attended the training. As a result, they are able to deliver similar training to clients and also train colleagues on how to appropriately and responsibly advise agricultural producers applying for a loan or other financial products.
The project implementation shows that farmers are chiefly interested in current loan conditions and how to gain access to finance at specific financial institutions.
START: December 2015
END: March 2016
Project partner: NABU, Ukraine