OREANDA-NEWS. February 06, 2013. The Head of the Agriculture Sector, of the Department for Control over Chemical Industry and Agro-Industrial Complex of the Federal Antimonopoly Service (FAS Russia), Galina Trusova, took part in the Round Table on “Implementing a System of Commercial Agrarian Certificates in Russia”, organized by the Ministry of Agriculture of the Russian Federation jointly with the European Bank for Reconstruction and Development (EBRD) and the Food and Agriculture Organization of the United Nations (UNFAO), reported the press-centre of FAS Russia. 

The Round Table analyzed experience of Brazil that has a successful system of financing agricultural producers against future yield – lending against Commercial Agrarian Certificates. The Round Table also discussed possibilities of introducing a similar tool in Russia.

Participants of the Round Table was presented a feasibility study and analysis of the current legislative framework of the mechanisms for crediting agricultural producers against future yield, prepared by UNFAO and EBRD, as well as approaches to devising a special draft Law which would establish the procedures for performance of Commercial Agrarian Certificates as a new type of securities.

Representatives of banks, insurance companies, representatives of agricultural producers, that took part in the Round Table, supported the idea of a new draft Law because there is an urgent need in a reliable tool of deferred payments, which would alleviate the risks for banking system crediting agricultural producers against future yield and would enable increasing the volume of loans and the number of borrowers.

“This is the first workshop of a joint project on introducing Commercial Agrarian Certificates in Russia. There will be more events that will enable to timely listening to all interested parties in order to make the most correct decision. Introducing Commercial Agrarian Certificates in Russia is a purely market mechanism, which facilitates development of insurance and exchange trading with agricultural products. FAS supports the project and believes that its implementation will positively impact development of competition in this field”, said the Head of FAS Department for Control over Chemical Industry and Agro-Industrial Complex, Anna Mirochinenko.