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Law on storehouse certificates will complicate turnover of these documents in Ukraine - an expert
Enactment of the Law "About Certified Commodity Storehouses and Simple and Double Storage Certificates", signed by ex-president of Ukraine Leonid Kuchma in mid-January, will significantly complicate the situation with turnover of these documents in Ukraine, said Viktor Andrievsky, Head of the Joint Project for Introduction of the Storehouse Certificates System in Ukraine, operated by the European Bank for Reconstruction and Development and ACDI/VOCA.
According to Andrievsky, the mechanism of storage certificates in Ukraine today works virtually solely in the agrarian sector and is quite successfully regulated by the current law "About Grain and Grain Market in Ukraine". The new document, according to the expert, will create additional difficulties in the area of juridical regulation of the storehouse certificates turnover, as the provisions of the new law are partially inadequate to those of the older ones or even directly contradict to them.
He said that while the mortgage system in agricultural system is practically out of function, grain storehouse certificates are about the only legalised means of farmers' crediting under security of these documents.
On January 12 Leonid Kuchma signed the Law "About Certified Commodity Storehouses and Simple and Double Storage Certificates", passed by Verkhovna Rada on December 23, 2004.