World Bank Group rolling out new financial instrument.
Kyiv: In partnership with the Swiss and Ukrainian governments, the World Bank Group is rolling out a new financial instrument - crop receipts - across Ukraine to expand access to finance for small farmers, boosting agricultural productivity and supporting economic growth.
They are expected to facilitate up to $520 million for Ukraine's agricultural sector over the next two years. The nationwide roll-out of crop receipts follows a pilot advisory project in eight Ukrainian regions. Crop receipts are a pre-harvest financial instrument, successfully used in a number of countries, which allows farmers to use future harvests as collateral, enabling them to purchase high-quality seeds and other essentials.
Holger Tausch, Director of the Swiss Cooperation Office in Ukraine, said, "Crop receipts are a highly innovative financial instrument. Last year, we expanded the pilot project into eight regions, and this year we hope to expand it to the entire country." The project is being implemented by IFC, a member of the World Bank Group and the largest global development institution focused exclusively on the private sector in developing countries, with financial support from Switzerland's State Secretariat for Economic Affairs (SECO).