Crop and Warehouse Receipts Program

Agriculture is a key source for employment in some of SECO’s partner countries and contributes to food security but limited access to finance hinders agriculture productivity and profitability. Lack of suitable collateral required is the primary cause of the inability to access working capital loans. The program builds on the successful experience of SECO's crop receipts program in Ukraine and its long-term support for secured transaction reforms.

The overall goal of the program is to improve access to finance for farmers in Albania, Azerbaijan, Georgia, Kosovo and Peru by enabling them to use their future crops and crops stored in the warehouse as collateral to access working capital finance. Through a holistic approach, the program will (i) establish the legal and regulatory framework for crop and warehouse receipts, including development of the infrastructure required for trading these instruments, (ii) provide capacity building and training to a wide range of stakeholders in the financial and agricultural sector to enable the creation of a market for crop and warehouse receipts, and (iii) raise public awareness for these instruments.

Adoption of the law on crop and warehouse receipts and all the supporting regulations that enable the use of crop and warehouse receipts in participating countries

Establish fully operational and reliable public or private registries on crop and warehouse receipts

Input suppliers, distributors, and financial institutions adopt the instrument and put them into systemic use

Key users of the instruments know how to use crop and warehouse receipts

Erwartete Resultate:  

Draft recommendations for legislation and policies

Draf a guideline for the development and implementation of a model law for crop receipts

Draft the Crop and Warehouse Receipt Register concept paper (structure, technical characteristics of the system) and technically develop the system, if possible with existing collateral registries

Input suppliers, distributors, and financial institutions’ teams cooperate with the program

User-segmented cooperation on crop and warehouse receipts

Engaging the target audience via different communication channels to learn about crop and warehouse receipts, climate-smart agriculture