SLOVAK/GRAIN RECEIPT PROGRAM - FRAMEWORK

Location:

Slovak Republic

Project number:

6366

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

FI

Approval 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

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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