- support the implementation of seasonal credits for the agribusiness sector in Croatia, backed by agricultural commodities as collateral.
- provide additional comfort to ZABA and potential sub-borrowers in this relatively new form of agribusiness lending in Croatia.
- work together with the Croatian Ministry of Agriculture to approve and implement appropriate warehouse receipt legislation.
- Due to the strong reliance on Government funding in the Croatian agricultural sector, the transition impact mainly stems from:
- The introduction of commercial lending to the Croatian agricultural sector to agribusiness processors, primary agricultural producers and grain traders, most of which have been unable to secure financing from commercial sources to date.
- Pre-Law financing: The Facility directly supports the government’s initiative to create a fully functional warehouse receipt law expected to finalised for the 2004 season. The Facility will (i) act as a practical example of agricultural commodity financing; and (ii) help to build the participants’ trust in the institutional building process.
- Institutional Dialogue: In parallel with this Facility, the Bank initiated an institutional policy dialogue with the Croatian authorities regarding the creation of the legal framework for warehouse receipt lending and related infrastructure.
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