INTERNATIONAL AGRARIAN RECEIPTS AS A MECHANISM FOR FOREIGN INVESTMENT

Authors

  • A. Starodubtsev V. N. Karazin Kharkiv National University, Ukraine
  • Yu. Bakai Yaroslav Mudryi National Law University, Ukraine

DOI:

https://doi.org/10.18371/fcaptp.v2i33.206725

Keywords:

agrarian receipt, security, commodity agrarian receipt, financial agrarian receipt, debtor, lender, register of agrarian receipts, pledge of future harvest

Abstract

The paper analyzes the characteristics of lending to agricultural commodity producers using the innovative financing method — the agrarian receipts.

In order to operate a new tool for lending to agricultural commodity producers, in the fall of 2014, a joint Order of the Ministry of Agrarian Policy and Food and the Ministry of Justice of Ukraine has introduced a pilot project Agrarian Receipts in Ukraine with the assistance of the International Finance Corporation (IFC) in partnership with the Swiss Confederation in Ukraine. Not only suppliers and distributors of material and technical resources, grain traders, banks, but also non-resident companies from Estonia, the Netherlands, and the United Arab Emirates have joined creditors on agrarian receipts. As a result of the Project, small and medium agricultural commodity producers have received an effective tool that will help to attract additional financial resources due to transparency of relations with the lender and to reduce the cost of the registration procedure compared to other tools.

That is why the paper notes the importance of improving the mechanism of international agrarian receipts by amending the current legislation of Ukraine. After all, this will contribute to improve the access of agricultural commodity producers to production resources and financing, usability, efficiency, reliability of agrarian receipts, and expand the scope of their use. In this regard, proposals to amend the Law of Ukraine On Agrarian Receipts, namely, to determine the legal nature of an agrarian receipt and to enshrine at the legislative level of an agrarian receipt as a security with the possibility of its use in free circulation have been developed.

It is considered the foreign experience in crediting the agricultural sector using of agrarian receipts. The features and attractiveness of the mechanism for financing agricultural commodity producers using international agrarian receipts, because it allows domestic agricultural producers access to international financing, have been disclosed. Therefore, one of the main purposes of this paper is to attract the attention of reseachers to the need to improve the mechanism for applying international agrarian receipts, putting them into circulation, which will facilitate the effective use of this tool by agricultural commodity producers in the process of attracting foreign financial resources.

Author Biographies

A. Starodubtsev, V. N. Karazin Kharkiv National University

Doctor of Law, Professor of the Department of State Law Disciplines, Faculty of Law

Yu. Bakai, Yaroslav Mudryi National Law University

Ph. D. in Law, Assistant of the Department of Land and Agricultural Law

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Published

2020-06-30

How to Cite

Starodubtsev, A., & Bakai, Y. (2020). INTERNATIONAL AGRARIAN RECEIPTS AS A MECHANISM FOR FOREIGN INVESTMENT. Financial and Credit Activity: Problems of Theory and Practice, 2(33), 259–267. https://doi.org/10.18371/fcaptp.v2i33.206725

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Section

The topical questions about the development of finance, account and audit