SLOVAK/GRAIN RECEIPT PROGRAM - FRAMEWORK

Location:

Slovak Republic

Project number:

6366

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

FI

Target board date:

08 Sep 1998

Status:

Completed

PSD disclosed:

11 Aug 1998

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 in 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 borrow against it. The project can be replicated in other EBRD 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, an entity related to the Slovak Ministry of Agriculture.

EBRD Finance

DM 50 million (ECU 25 million) loan, 50 per cent of which will be syndicated to commercial banks.

Project Cost

DM 100 million (ECU 50 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 specialised consultants.

Company Contact

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.