Slovak Grain Receipt Program - Pol'nobanka


Slovak Republic

Project number:


Business sector:


Notice type:


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Approval date:

08 Sep 1998



PSD disclosed:

19 Aug 1999

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.


Business opportunities

For business opportunities or procurement, contact the client company.

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Tel: +44 20 7338 7168

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