Ukrainian Grain Association has presented a mechanism of bank guarantee for forward contracts on the grain market, which were long overdue. This is reported by ProAgro Group with reference to the information of the Ministry of Agrarian Policy and Food.
“The proposed UGA mechanism will level the playing field for all producers and enable them to get a higher price at the expense of a reliability premium, reduce the risk of potential losses for buyers and guarantee the reliability of suppliers”, Minister Roman Leshchenko expressed his conviction during the discussion of the initiative.
According to him, the new mechanism will allow Ukraine to reach a qualitatively new export level and develop the positive dynamics that the agricultural sector demonstrates today.
“Foreign partners expect stability from us, and our agrarians wait for a civilized market of grains and oilseeds under clear rules,” the minister said.
He pointed out that all this guarantees Ukraine additional state budget replenishment, balance of foreign trade and foreign currency incomes.
“We will be able to intensify the development of agriculture. Make the domestic agrarian stable and predictable participant of the market, “- said Roman Leshchenko.
Representatives of the banking community joined the discussion at the presentation: in particular, the were Independent Association of Ukrainian Banks, EBRD in Ukraine and IFC in Ukraine, banking institutions.
