Slovak Grain Receipt Program - Pol'nobanka

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 5600

Status Complete

Location

Slovak Republic

Business Sector

Food and Agribusiness

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 5600

Status Complete

Location

Slovak Republic

Business Sector

Food and Agribusiness

Notice Type

Private

Environmental Category

Approval Date

08 Sep 1998

Disclosure date

19 Aug 1999

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The programme will introduce a new financing system, which will provide secured lending for the seasonal working capital needs of farmers by using warehouse receipts. The creation of secure collateral for banks will mobilise credit for the agribusiness sector.

The project aims to demonstrate the viability in the Slovak Republic of a system of financing working capital in the agribusiness sector using grain receipts, bringing foreign commercial funds, reducing financing costs and increasing the options available for farmers.

Transition Impact

The programme will contribute to competitive market interactions in the grain sector by introducing a new financing instrument to banks and farmers. It simplifies the administration of loans and reinforces the legal surety of all parties involved in credit transactions. It will also improve the functioning of markets by giving the farmers the freedom to choose whether to sell their grain at harvest or to store it and finance it. The project can act as a model for other operations in the Bank’s countries of operations.

The Client

The final borrowers under this programme are agricultural producers and processors, who will borrow against grain stored in licensed warehouses.

The programme will be managed by a local bank, Pol’nobanka, which will provide 50 per cent of the financing needed. It will also act as an agent on behalf of the EBRD.

During a first phase the EBRD’s financing will be provided through the State Fund for Market Regulation, dependent to the Slovak Ministry of Agriculture.

EBRD Finance

DM 50 million (€25.5 million) loan, 50 per cent of which will be syndicated to commercial banks.

Project Cost

DM 100 million (€51 million).

Environmental Impact

This intermediated financing operation has no direct impact on the environment. Trade involving goods/activities listed on the EBRD's trade-related Environmental Exclusion List are excluded from financing under this facility. Borrowers under this facility will be required to comply with national laws and regulations for environment, health and safety.

Technical Cooperation

TC funding was provided to carry out a review of the system by specialist consultants.

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

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Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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