The European Bank for Reconstruction and Development (EBRD) has offered Ukrsotsbank (Kiev) to open a special credit line of $10m for several years to finance grain purchases at grain elevators on the security of storage notes, a representative of Ukrsotsbank told RBC. It is planned to transfer credit tranches with a term of about six months to finance specific purchases. The use of storage notes for grain will allow for granting more loans to agricultural companies.
Storage notes for grain were introduced in Ukraine in accordance with the Law on Grain and the Grain Market, adopted on August 5, 2002. Following a tender, the Agrarian Policy Ministry has chosen the state joint-stock company Khleb Ukrainy as a government agent for purchasing grain that will be used as a collateral. The amount of capital of Ukrsotsbank reached $80.8m as of April 1, 2003, and the sum of its net assets amounted to $594m.