Kiev, Ukraine, April 29, 2014—IFC,
a member of the World Bank Group, is partnering with global companies BASF
and Syngenta to support the introduction of crop receipts, a new financial
instrument for Ukraine that will make high-quality seeds and other inputs
more affordable for small and medium-scale farmers, helping boost agricultural
Working with the Ukrainian government, input suppliers BASF and Syngenta,
and other market players, IFC’s Advisory Team will help develop legislation
and pilot the first use of crop receipts during the autumn agricultural
season. Crop receipts will allow farmers to use a crop as security to purchase
seeds and other materials.
The instrument, which has been modeled on a successful program operating
in Brazil aims at overcoming the existing lack of acceptable security in
Ukraine that imposes a major constraint on financing SME farmers.
“Ukrainian agriculture has great export and yield potential but the main
growth constraint is cheap and accessible financing,” said Helen Fairlamb,
Head of Business Development at Syngenta Ukraine.
“Based on our experience in Brazil, where there is a similar product,
we believe that crop receipts could be a simple, understandable, and transparent
way of releasing financing, helping improve the confidence of input suppliers
and banks in supplying greater credits to agriculture.”
Tom Wetjen, Head of Marketing Crop Protection in Ukraine, Moldova and the
Caucasus at BASF, said: “Crop receipts will make the high quality, innovative
crop protection products of our company and other materials more affordable
for farmers. Considering the existing difficulties in getting credit and
limited market liquidity, it will be a very convenient instrument to attract
the financing, and cheaper than other financial instruments on the market
Elena Voloshina, head of IFC’s operations in Ukraine, explained: “Ukraine’s
agricultural sector has been a major driver of the country’s economy for
several years. Our new advisory initiative aims to unlock millions of dollars
in additional financing from agricultural input suppliers, traders, and
banks to ensure long-term growth of the sector.”
With support from IFC and other international financial institutions, including
the European Bank for Reconstruction and Development, Ukraine’s parliament
passed the law on agricultural receipts in November 2012. Yet more work
on legislation is required to ensure the success of the instrument. Activities
under the new IFC advisory initiative will include establishing a government
register to be used by notaries to prepare the legal documents and finalize
legislative regulations governing their use.
IFC supports the entire agriculture and food value chain, from farm production
to collection, processing and distribution, and has already invested over
$800 million in Ukraine agribusiness.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit
For more information please visit www.agro.basf.com.
For more information please visit www.syngenta.com.