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EBRD proposed a Ukrainian bank $10 mln credit line to finance grain purchases
European Bank for Reconstruction and Development has proposed Ukrsotsbank (Kiev) to open a $10 million special credit line for financing purchases of grain on the security of grain warehouse receipts, Chairman of Ukrsotsbank's Board Boris Tymonkin has informed.
He said the credit line was being opened to the bank for the term of several years. It was planned to allocate within its framework specific tranches for purchases for the term of up to six months.
The head of the bank thinks utilisation of warehouse receipts will help revive provision of loans to farming businesses in Ukraine. "This instrument will make the market transparent and easily financed", he said.
The institution of warehouse receipts was introduced in Ukraine by the law "About Grain and Grain Market", adopted by parliament on August 5, 2002.