Access to finance projects and news

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Kosovo – Facilitating access to finance for SMEs by improving the legal framework governing factoring activities

In 2017, the EBRD's Legal Transition Team (LTT), at the request of the Central Bank of Kosovo (CBK), initiated a project to provide technical assistance with the development of a regulation on factoring. With the assistance of local and international consultants, LTT reviewed the then existing legal framework governing factoring in Kosovo and benchmarked it against international and regional best practices. Guided by the findings of this review and the feedback from key market participants, LTT assisted with the preparation of the Regulation on Factoring, which was adopted by the CBK’s Board in October 2018 and entered into force in November 2018.

The new factoring regulation creates a more conducive environment for the development of factoring activities in Kosovo, which should ultimately facilitate and improve small and medium-sized enterprises' access to finance.

Montenegro - Regulation of Financial Leasing and Factoring

In 2016, the EBRD's Legal Transition Team (LTT), at the request of the Ministry of Finance of Montenegro, initiated a project to provide technical assistance with the development of a legal framework for financial leasing and factoring. With the assistance of local and international consultants, LTT reviewed the then existing legal framework governing factoring and financial leasing in Montenegro and benchmarked it against international best practices. Guided by the findings of this review, LTT assisted with the preparation of the relevant sections of the new law on financial leasing and factoring, which was adopted by the Parliament in November 2017 as part of the Law on Financial Leasing, Factoring, Purchase of Receivables, Micro-Lending and Credit-Guarantee Operations.

This new law in Montenegro entered into force in May 2018, and creates a more conducive environment for the development of factoring and financial leasing activities, which would ultimately facilitate and improve small and medium-sized enterprises' access to finance.

Ukraine – Advancing development of pre-harvest financing instruments in agriculture

Following the enactment of the Law on Agrarian Receipts in Ukraine in 2013, the country's Ministry of Agricultural Policy and Food of Ukraine approached the EBRD's Legal Transition Team (LTT) and the Food and Agriculture Organisation (FAO) with a request to provide assistance in drafting the implementing regulations and providing other related technical assistance. In response, the LTT and FAO then launched a technical assistance project in order to: (i) improve access to pre-harvest finance through agrarian receipts for farmers and agribusinesses; and (ii) implement and promote this new financial instrument in Ukraine. As a result of this project, several draft laws and amendments related to the implementation of the agrarian receipts and monitoring of collateral were prepared and submitted to the Ministry, National Bank of Ukraine and other authorities. In addition, training materials and presentations were developed and several seminars and conferences were organised as part of awareness raising and capacity building activities.

Serbia – Implementation of a Crops Receipt System

In 2011 the LTT - in cooperation with FAO - reviewed the pre-harvest financing market and instruments in Serbia. The review demonstrated that farmers faced difficulty obtaining pre-harvest finance due to the inability to offer valuable collateral.  In order to address this, FAO and the EBRD provided technical assistance to the Serbian Ministry of Agriculture to develop a draft law on crop receipts.  After a thorough consultation process with banks, farmers, processors and traders, the final draft law was presented in February 2013 at a public hearing organised by the Ministry and it received wide support.

As a follow-up to this project in 2013, the LTT initiated a technical cooperation project to provide further support to the Ministry with the adoption of the Law, and to support successful implementation of the new crops receipt system by developing a new registration system.  Finally, in collaboration with FAO, the LTT conducted awareness raising and capacity-building activities on the implementation of the new crops receipt system for farmers, processors, traders and banks.

Serbia – Revision of the Mortgage Legal Framework

In 2013, following a request from the Ministry of Finance in Serbia, the LTT initiated a technical cooperation project to assist the Ministry revise the legal framework for taking and enforcing mortgages.  Our support consisted of the following:

  • reviewing the existing legal framework for taking and enforcing mortgages, identifying its shortcomings and benchmarking it against international best practices,
  • assisting in drafting of the necessary amendments to the then-existing Mortgage Law
  • supporting the Ministry with the legislative adoption process.

As a result of our work, the amended and restated Mortgage Law was adopted by the Parliament in 2015.

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