Crediting in Agriculture in Slovak Republic Ing Mgr

Crediting in Agriculture in Slovak Republic Ing. Mgr. Marianna Čertíková Specialist for Agri Clients, ČSOB Bank a. s. , Slovakia (member of KBC Group) mcertikova@csob. sk

Slovakia Number of inhabitants: 5 427 917 mil. ( of which half lives in rural areas) Area of SR: 4 903 459 ha (49 035 km 2) of which: Agricultural land: 1 921 563 ha Arable land: 1 350 180 ha Forests: 2 020 116 ha

Agriculture – state of play Share of SR agriculture on EU-28: 0, 6% Share of EU-15 agriculture on EU-28: 83, 6% (France, Germany, Italy, Spain) Share of agriculture and food sector on gross added value of SR: 4, 05% Share of agriculture and food sector on employment of SR: 1, 89% Minimum wage: 480 Eur, Average wage in agriculture: 702 Eur, (average wage in national economy: 954 Eur)

Agricultural capital market development (before and after EU accession) Before EU accession Before 1989 United agricultural cooperatives – JRD (since 1949) Strong focus of state to agri-food sector After 1989 restructuring of ownership relations, privatization Slovakia – since 1993: significant decline of economical conditions of farms, decline of production – external and internal influences Rapid decrease of farm animals Bad production results After EU Accession (after 2004) Common Agricultural policy (subsidies, open market, market measures. . . ) Better production results Further decrease of farm animals Situation remains unstable (strong volatility of prices, threat to competitiveness, unfair practices of chains of supermarkets, high production costs, low national subsidies) CAP post 2020: strong focus to protection of environment, capping, market measures, risk management etc. .

6, 000 Hydina spolu Sliepky Kurčatá 6, 118. 2 2, 000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* 500 400 300 248. 1 152. 3 368. 9 381. 7 391. 2 399. 9 6, 667. 0 6, 732. 6 6, 315. 2 6, 334. 2 6, 112. 2 5, 772. 7 5, 692. 1 5, 601. 8 5, 849. 4 5, 778. 0 5, 505. 0 5, 380. 4 Average yearly production per cow in l 260. 5 159. 9 265. 4 161. 5 269. 8 169. 5 409. 6 393. 9 394. 2 377. 0 272. 2 193. 2 265. 0 162. 0 263. 8 158. 7 254. 6 160. 7 248. 1 153. 9 600 361. 6 Prasnice 231. 1 145. 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* 347. 2 0 5, 083. 2 8, 000 332. 6 229. 0 151. 3 6, 000 20 15 20 16 * 20 14 20 13 20 12 20 11 20 10 20 09 20 08 20 07 20 06 20 05 Number of pigs in th. of pcs. 5, 028. 5 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* Hovädzí dobytok Kravy Dojné kravy 20 04 20 03 194. 2 135. 5 446. 1 457. 6 465. 5 467. 8 471. 1 463. 4 467. 1 472. 0 929. 4 1, 026. 5 1, 043. 4 1, 059. 9 1, 067. 8 1, 047. 2 1, 108. 9 905. 5 929. 5 921. 1 906. 7 931. 5 901. 3 891. 2 199. 5 139. 2 201. 8 143. 1 199. 0 144. 9 202. 6 150. 3 201. 3 154. 1 204. 4 159. 3 204. 1 162. 5 488. 4 501. 8 507. 8 527. 9 540. 1 1200 320. 5 233. 2 157. 9 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 * 585. 8 633. 1 641. 8 637. 2 631. 5 580. 4 687. 3 740. 9 211. 3 173. 9 215. 7 180. 2 218. 7 185. 0 229. 6 198. 6 231. 9 201. 7 593. 2 Number of cattle in th. of pcs. 321. 2 224. 0 148. 6 35. 5 38. 1 40. 5 39. 7 37. 4 41. 3 43. 9 44. 5 748. 5 951. 9 1, 104. 8 1, 108. 3 0 325. 5 216. 5 142. 3 12, 130. 5 12, 836. 2 12, 494. 1 10, 968. 9 11, 849. 8 11, 375. 6 12, 991. 9 Ošípané spolu 6, 043. 7 6, 301. 2 5, 651. 3 6, 375. 9 5, 680. 9 4, 740. 9 6, 265. 5 5, 099. 8 6, 183. 4 4, 746. 2 6, 266. 2 6, 253. 1 6, 252. 2 6, 851. 8 13, 583. 3 62. 0 1, 000 11, 228. 1 12, 880. 1 76. 9 79. 5 82. 2 1, 149. 3 200 5, 556. 3 5, 175. 4 5, 773. 5 6, 507. 7 13, 038. 3 14, 000 5, 702. 2 6, 743. 9 5, 591. 2 7, 875. 6 14, 084. 1 13, 713. 2 500 5, 647. 5 7, 465. 7 600 0. 0 10, 000 1, 443. 0 1, 500 105. 2 2, 000 6, 126. 9 7, 475. 3 18, 000 245. 8 214. 5 400 14, 216. 8 800 Production of raw caw milk in mil. l 800 400 0 4, 000 Number of poultry in th of pcs. 2, 000 0 Number of sheep in ths. of pcs. 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

Subsidies of EU -Common Agricultural Policy 1 st pillar Amount for EU: 312, 75 bln Eur/ Amount for SR: 3, 05 bln Eur New CAP: 286, 2 bln /2, 75 bln. Eur 2 nd Pillar Amount for EU: 95, 58 bln Eur Amount for SR: 2, 08 bln Eur New CAP: 78, 8 bln/1, 59 bln Eur +41, 2 mil for support of market measures

0 516 501 483 465 457 GR LU IT BE DE 70 518 SL 176 156 141 BL LV RO HR 18 176 EE LT 187 PT 214 253 ES GB 257 SK 282 323 IR PL 334 SE 289 343 CZ FR 347 HU 384 526 DK 623 571 AT NL CY FI 308 755 1800 2000 ML EU-15 344 500 EU-28 Subsidies (direct payments, ANC, agroenviroment) in €/ha used agricultural land (r. 2014) 1500 1000

State supported loans and subsidized interest rates Slovenská záručná a rozvojová banka: Short term, long term credits, restricted but andvantageus conditions, less flexibility Commercial banks – no subsidized interest rates or state supported loans, nor any state guarantees, more flexibility, low interest rates State support to farmers: Green oil (formerly known as „red oil“): 30 mil. Eur/2018 National support (subsidies) to farmers in Slovakia: 1 mil. Eur in 2018! In 2016 was level of state support in surrounding countries 10 - 30 times higher

Guarantee funds in agriculture - how it functions, conditions, procedure and experience There are no Guarantee funds in agriculture in Slovakia Talks on „RISK FUND“ : -covering of unexpected risk on the market – weather, price volatility etc -co-financing of State, Enterpreneurs (mandatory levy), Insurance companies - No agreement so far

Agricultural credit system in Slovakia

Current state of play of Financing - Long and medium term credits: Investments (with or without EU funds) Agricultural land Aquisitions of farms - Short term credits: - Operational funding (subsidies prepayment, overdraft loan, Structure of loans in agriculture in SR % - Leasing 4% 23% - Insurance Krátkodobé Strednodobé Dlhodobé 73%

Major conditions (interest rates, repayment period, fees, collateral requirements etc) SME, Corp, Micro Short term: 0, 5 -2, 9% margin + Euribor Long term: 1, 6 -3 margin + Euribor Repayment periods: Short term, medium, long term (up to 20 Y) Collateral requirements: Pledge for property, movable property, stock, receivables (pohľadávky), disposal (dispozičné právo) of credit bank account (expert opinion or own assesment of value of collateral)