The Ukrainian Agri Council appealed to MPs to support the draft Law of Ukraine "On Electronic Agricultural Receipts" (registration No. 9266 of May 2, 2023).
According to the UAC, the adoption of the draft Law of Ukraine "On Electronic Agricultural Receipts”:
- will create new opportunities for agricultural producers to access financial and commodity resources
- introduce a reliable financial instrument that will expand the range of creditors able to finance Ukrainian agriculture, including non-resident creditors.
According to a research conducted by the UAC at the end of 2022, limited access to financial resources is one of the key problems faced by agricultural producers today. 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 - electronic agricultural receipts in the form of a non-issue security.
"Such a tool is based on the positive experience of agrarian receipts operating in accordance with the Law of Ukraine "On Agrarian Receipts" and allows to use the advantages of capital markets to attract additional resources to agriculture. In addition, the draft law greatly simplifies the procedure for issuing, circulating and terminating electronic agricultural receipts," is mentioned by the UAC.
Unlike traditional paper agricultural receipts, operations with electronic agricultural receipts are carried out in the Register of Electronic Agricultural Receipts in a personal electronic account with the help of an electronic signature, which does not require a notary, spending time and significant costs.
The advantage of the draft law is the expansion of possible pledge options, including the possibility of pledging live animals and products of animal origin, products of their primary processing, which creates conditions for attracting resources to livestock farms, compared to traditional paper agricultural receipts.
"The draft law contains a significant number of proposals to improve the legal regulation of agrarian receipts based on the existing experience of using them in Ukraine. This will increase the attractiveness of this instrument for creditors and, accordingly, expand the possibility of attracting financing by agricultural producers," the statement said.
In 2022, more than 700 agrarian receipts were issued with a total value of USD 188 million, which allowed to attract resources for more than 400 agricultural producers.
The UAC, along with other industry associations and market participants, took an active part in the development of the draft law and its preparation for the second reading. In view of the above mentioned, farmers are asking to support the draft Law of Ukraine "On Electronic Agricultural Receipts" (registration No. 9266 of 02.05.2023) in the version prepared for the second reading.
Monday, 30 October 2023
