By KYIV. Oct 27 (Interfax-Ukraine) – The current mechanism of crop receipts in Ukraine is planned to be extended to livestock farming and processing, Kyrylo Mukhomedzianov, a specialist in the financial sector of the project on the development of access of the agricultural sector of Ukraine to capital markets (IFC) said at the webinar “Crop receipts: access to financing during war and prospects for the future.”
“We worked hard to develop a mechanism for raising funds abroad by securitizing crop receipts, but with the beginning of the full-scale invasion of the Russian Federation in Ukraine, these plans are almost impossible to implement. While we have shifted our focus, we are working on modernizing these instruments. We are trying to make crop receipts even more modern, a safe and cheap tool. We are working on its use not only in crop production, but also in animal husbandry and processing,” the press service of the Ukrainian Agrarian Council (UAC) quoted him as saying.
Mukhomedzianov recalled that before the war, crop receipts were used in 60% of cases in relations between farmers and resource suppliers. Another 30% was accounted for by financial receipts under the loan agreement.
“Most often, crop receipts were used to finance working capital, but there were cases of financing fixed assets, in particular, when purchasing agricultural machinery. There are cases of using crop receipts in organic production, gardening, and the purchase of faarmland,” the IFC representative said.
