The Committee on Finance, Taxation and Customs Policy of the Verkhovna Rada of Ukraine supported the draft law "On Agricultural Notes" No.9266 dated May 2, 2023 for the second reading. In the first reading, the document was titled "Draft Law on Electronic Agricultural Receipts", but it was decided to rename it for the second reading.

The UAC, together with other industry associations and market participants, took an active part in its development and preparation for the second reading.

The Draft Law No. 9266 is aimed at expanding the mechanisms for attracting financing to agricultural production by introducing a new financial instrument for lending to agricultural production - agricultural notes in the form of a non- underwriting security. This provision will make loans, which are popular among farmers, more attractive for banks.

In addition, compared to traditional paper agricultural receipts, agricultural notes will have a significantly simplified procedure for issuing, circulating and terminating them. A special register and electronic cabinet will be created for transactions with Agricultural Notes. It will be accessible by electronic signature, which will not require a notary, and thus will not require time and money.

Another advantage of the draft law is the expansion of pledge options compared to traditional paper agricultural receipts, including the possibility of pledging live animals and products of animal origin, as well as products of their primary processing, which creates conditions for attracting resources to livestock farms.

Please note that the law on agricultural receipts will exist in parallel with the law on agricultural notes. Such a decision will allow not to destroy the economic relations that have already developed in the market with the use of paper agricultural receipts. In the future, market participants will be able to choose an instrument that is acceptable to them: either paper agricultural receipts or agricultural notes in electronic form.

The draft law No. 9266 "On Agricultural Notes" is supported by agricultural, business and banking associations. The Ministry of Agrarian Policy and Food of Ukraine, the National Depository, and the National Securities and Stock Market Commission are also in favor of its adoption in the second reading. The document is also recommended by international partners. We hope that MPs will adopt it as soon as possible.