Press centre

Despite the difficult situation with the loan of the Chinese Eximbank, it is not a question of default before suppliers and customers of JSC “State Food and Grain Corporation of Ukraine”.

Acting Chairman of the Board Vasyl Kovalenko told about this in his interview to the News Agency “Ukrinform”.

“Despite the pre-default, in fact, condition under oppressive loan liabilities, even with the low level of working capital in the corporation, it is not a question of default before our suppliers and buyers. Indeed there are difficulties in the relationship with our largest creditor, but no one will allow the bankruptcy of the corporation. Although I doubt that company will survive after one more change of management team”, – Vasyl Kovalenko noted.

The head of the corporation said that in 2012 JSC “SFGCU” received the loan from the Chinese Eximbank under state guarantees. Now the corporation cannot cope with the debt load by itself. In response to this problem, a special interdepartmental commission has been set up to assist in resolving this issue.

“Critical decision of government: SFGCU should survive and continue operating. It should be transformed into a global state national grain trader with a full cycle of grain production – from cultivation to sale. In fact, the Chinese have also repeatedly stressed that SFGCU should have a land-bank for growing goods required for supply to China”, – Vasyl Kovalenko added.

Answering questions about the future of the corporation, Acting Chairman of the Board noted that the solution of the issue with the Chinese loan is priority today: “We suggest not to stop and look for alternative sources of financing. It is necessary to repay the loan to the Chinese Eximbank and move ahead with a clean slate. We have already presented a detailed plan to the Cabinet of Ministers, now we are at the stage of discussion”.

“If all our ambitious plans are fulfilled, it will be realistic to bring it (the corporation) out of decline within two years. But this is subject to the formation of a land-bank, attracting investment and building a new corporate business model. Upon the availability of the liquidity of the grain market and the fact that Ukraine is one of the leaders in the agricultural market, we will get out of the crisis quickly enough”, – Vasyl Kovalenko mentioned.