Ukrainian farmers received 1,238 crop receipts for the amount of UAH 8 billion since the beginning of 2019, which is 721 receipts and UAH 4.8 billion more than a year ago, the Ministry of Economic Development, Trade and Agriculture has reported.
According to the ministry, since the introduction of the project in Ukraine in 2015 a total of 2,116 crop receipts were registered for the amount of UAH 14.5 billion. Over 130 companies lend using crop receipts, both Ukrainian and international.
By the number of the receipts 60% are financial ones, providing for relations in cash. The average size of liabilities for one financial crop receipt is UAH 5.8 million, for a commodity one – UAH 8.4 million.
Deputy Minister of Economic Development, Trade and Agriculture Inna Meteleva on October 21 at a meeting with representatives of the Crop Receipts Project in Ukraine of the International Finance Corporation (IFC) discussed the issue of changing the nature of relations on the use of crop receipts from contractual obligations for operations with securities by introducing separate legislative changes.
“Changes in the legislation will strengthen the balance of interests of the debtor and the creditor, as well as expand the business opportunities of working with crop receipts, which will provide the prerequisites for the development of refinancing,” Head of the Crop Receipts Project in Ukraine Leah Soroka said.
In the near future it is planned to submit these changes for discussion with stakeholders and interested central executive bodies to form a consolidated position.
The Crop Receipts project in Ukraine is being implemented by IFC, a member of the World Bank Group, in partnership with the Swiss Confederation. The practical application of crop receipts began in 2014 in Poltava region. Soon other regions of the country joined this financial tool.