Deputy Minister of Economy, Trade, and Agriculture of Ukraine Taras Vysotsky stated that work on updating the instrument under the draft law №2805-d began last year, and the bill is expected to be considered in the first reading in the Verkhovna Rada in the near future.
Kiev. Ukraine. Ukraine Gate – March 11, 2021 – Agriculture
According to the Deputy Minister, over the past few years, agricultural receipts have become a simple and effective mechanism for agricultural producers to attract funding secured by the future harvest. The dynamic growth of the agricultural receipts market provided more than 35 billion hryvnias in the financing, and more than 4,000 agricultural producers, mostly small and medium-sized enterprises, used the tool.
“Sometimes we hear comments that agricultural receipts work and there is no need to change the working mechanism. However, in the current format, the tool does not realize its full potential, but only provides limited demand for agricultural producers for financing. We are implementing a number of initiatives for the development of Ukraine’s agriculture – which, by the way, is also working quite well, but is not realizing its potential – and the development of this sector is possible only with a favorable economic environment and efficient infrastructure. Both of these elements are impossible without effective and affordable financing tools, such as agricultural receipts, ”Vysotsky writes.
Modernization of agricultural receipts will allow increasing the volume of funding, in accordance with the needs of the sector. To this end, in cooperation with the market and on the basis of its requests, a draft Law №2805-D on improving agricultural receipts was developed.
Proposed legislative changes:
- maintain the current positive practice of using the tool;
- make it easier and cheaper to use;
- open access to agricultural receipts for a wider range of agricultural producers (such as livestock, horticulture);
- create a basis for the development of more complex and complex solutions, including through access to refinancing from capital markets.
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Source: Ukrgate
