Financing Serbian farmers before harvest
Europe, Eastern Europe, Serbia
At the occasion of Novi Sad's 82th International Agriculture Fair, Minister Snezana Bogosavljevic Boskovic, presented a new way to finance Serbian farmers before harvest. From 1 June 2015, thanks to the new Law on Financing Agricultural Production, farmers in Serbia are able to use future crops as collateral to obtain credit from banks and input suppliers. The Law, developed by the Ministry of Agriculture and Environmental Protection (MAEP) supported from the European Bank for Reconstruction and Development (EBRD) and the Food and Agriculture Organization of the United Nations (FAO) was adopted by the Serbian Parliament in November 2014 and will be implemented from 1 June this year.
The legislation adopted in Serbia is inspired by Brazil's legislation on Certificates of Rural Products or CPRs. CPRs are a simple and trusted financing tool, introduced by the Government of Brazil, to fill a gap in agricultural financing that the banking sector could not meet.
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