Crop Receipts Project Ukraine
The Crop Receipt project facilitates access to finance for small and midsize agri-businesses in Ukraine. Crop receipts essentially are loan agreements between a farmer and a creditor, where the loan is repaid by the future harvest or the proceeds from its sale. Given the vast untapped agriculture potential and its importance for agrarian SME development, the Crop Receipt project is key to facilitate economic inclusion of small and midsize farmers through the provision of growth capital. The project is implemented by the International Finance Corporation (IFC) and was launched in 2015.
Private sector and entrepreneurship
- International Finance Corporation
|Background||Ukraine has over 32 million hectares of arable land, most of which is high-quality black soil. Since recovering from the collapse of the Soviet Union, Ukraine has become a major exporter of grains and oilseeds with significant export potential undeveloped. However, a set of issues in the government administration and the agricultural sector hinder full development of this potential.|
|Objectives||By creating a crop receipts register and supporting the creation of the legal and regulatory framework, the instrument will unlock working capital for small and medium agri-businesses, which have no access to finance. The project's objective is to reach 4'000 small and medium agri-businesses and to facilitate a substantial loan amount within two years after project completion.|
|Medium-term outcomes||Establish legal and regulatory framework for crop receipts.Set-up the crop receipts register.Substantial growth of the crop receipts market.Increase awareness of crop receipts issues.|
Expected results: Develop laws, amendments and regulations that provide the necessary legal and regulatory basis to enable the crop receipts register.Prepare detailed technical requirements for the crop receipts register.Facilitate crop receipts issuances.
|Directorate/federal office responsible||
Swiss cooperation with Eastern Europe
|Budget||Current phase Swiss budget CHF 4'455'000 Swiss disbursement to date CHF 0 Budget inclusive project partner CHF 4'455'000|
|Project phases||Phase 10 01.06.2015 - 30.06.2020 (Current phase)|