: Ukraine's Grain Corp. not to use USD 1.5 bln in Chinese loan funds

16:32 Mar. 24, 2016

Ukraine's Grain Corp. not to use USD 1.5 bln in Chinese loan funds

A combine harvester drives across a wheat field during a harvest for the ZAT Nibulon agricultural company in Nikolaev, Ukraine, on Monday, July 8, 2013. (Getty Images)

PJSC State Food and Grain Corporation of Ukraine does not plan to use a second tranche of a loan, Andriy Repko

According to Deputy Chairman of the Board  Andriy Repko,  a fee worth USD 200,000 for booking the second loan tranche at the Chinese bank, which was designated by the State Financial Inspection's audit as the inefficient use of funds, was a one-time contribution.

"It was only paid once during the signing of the loan agreement," Repko said, noting that the Corporation was not going to pay extra amounts for the booking of the loan.

At this, the board deputy head noted that the Corporation was considering the possibility of building a new grain terminal for large vessels shipping grain to China.

The construction is feasible if the company receives guarantees of sufficient purchases from its

Read also  Ukraine, US sign investment deal to build grain terminal in Odesa region

The Corporation posted negative financial results for several consecutive years. In particular, in 2014 the company's loss amounted to UAH 3.5 billion, and last year it posted a loss of UAH 3.03 billion. According to Chief of the State Financial Inspection Lidia Havrylova, the main cause of the unprofitable operations was ineffective and inappropriate use of own and borrowed resources.

The Ukrainian Corporation has committed to use the second tranche of the loan funds (USD 1.5 billion) on imports of agricultural equipment and technical resources from China within five years.

Reporting by UNIAN

 

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