On December 17, 2019, a round table “Financial instruments for organic business” was held. The event was organized by the International Finance Corporation (IFC) project “Agrarian Receipts in Ukraine” and the Green Dossier Information Center. Representatives of IFC, other international organizations, banks, organic producers, as well as the Ukrainian Union of Lessors (UUL) participated in the discussion.
In particular, Ivan Yerko, Project Manager at Agro-Factory OTP Bank, spoke about the possibilities of financing agricultural production, as well as about his experience in implementing agrarian receipts. Sergiy Galashevsky, Director of Organic Standard LLC shared his knowledge on access to export markets, which open up additional opportunities for manufacturers.
Maryna Masich, Director of the Association, told the roundtable participants about the possibilities of leasing as a tool for financing agriculture, including production of organic products.
“The share of leasing agreements made by members of the Association is about 80% of the national leasing portfolio. Leasing agrotechnology takes about a third of it and has a steady upward trend, ”she said.
“Recently, Tecom-Lease, a member of UUL, has financed state-of-the-art equipment for the rapid freezing of berries for Fructon-VN, which indicates that leasing tools can meet the needs of small and medium-sized businesses, even such narrow and low liquid segments,” added the Association Director.
The leasing market in Ukraine has been actively developing in recent years. The share of agriculture in this development by assets is the first in the amount of about 27%, overtaking the share of the transport industry, which amounted to 22%, – according to the National Financial Services Commission according to the results of 9 months of 2019). And the growth rate of leasing in agriculture for the 9 months of 2019 was more than 27%, compared with the same period last year, – the source indicates. According to the data from the members of UUL, the share of their assets in agricultural machinery was 35% versus 42% in motor vehicles as of 3 quarters of 2019.
In addition, the trainees were acquainted with European and Ukrainian tendencies of the leasing market, as well as with the Association’s spheres of activities.
Reference:
Organic products are products of sustainable agriculture and / or food industry resulting from certified organic production, at all stages of which natural substances and processes are used.
Agrarian Receipts – a sales document that records the unconditional obligation of an agricultural producer to deliver agricultural produce or pay cash. The first agrarian receipts in Ukraine were issued in 2015 in Poltava region. In 2015-2017, a pilot register of agrarian receipts worked in several regions. With the launch of the National Register of Agrarian Receipts in early 2018, the use of the instrument has been extended to the whole territory of Ukraine.
Contacts:
Agrarian Receipts in Ukraine Project
Kyiv, 01010, Dniprovsky Uzviz, 1st, 3rd-floor
tel. 044 490 6400
fax. 044 490 6420
[email protected]
Association “Ukrainian Union of Lessors“ – established in 2005 as a voluntary association of professional participants in the leasing market. From the same year, the Association is part of the LEASEUROPE Confederation with its headquarters in Brussels, which brings together the Association of 31 European countries. The Association includes participants that generate 80% of the Ukrainian leasing portfolio.
Contacts:
+38 044 529 46 90
+38 093 381 51 00
[email protected]
www.uul.com.ua