The European Bank for Reconstruction and Development (EBRD), a development finance institution headquartered in London, and Crédit Agricole Serbia, a subsidiary of financial institution Crédit Agricole of France, have recently partnered to accept warehouse receipts as collateral for loans totaling EUR 20 million (USD 27.4 million) to agribusinesses in Serbia. Using warehouse receipts as collateral is expected to demonstrate the viability of lending against agricultural commodities, hereby facilitating access to funding for viable enterprises. The loan amount is part of EBRD’s EUR 70 million (USD 95.6 million) risk-sharing framework that was launched in July 2010 to finance the working capital needs of the Serbian agricultural sector by way of participating partner banks.
The implementation of EBRD warehouse receipt system in Serbia has been complemented by technical assistance grants provided by EBRD’s Shareholder Special Fund, UN’s Food and Agricultural Organization and United States Agency for International Development (USAID).
To access resources from USAID aimed at improving the outcomes of microenterprise development research and practice, you may visit http://microlinks.kdid.org/
By Jacqueline Foelster, Research Associate
About European Bank for Reconstruction and Development (EBRD): The European Bank for Reconstruction and Development (EBRD) is a development finance institution headquartered in London. EBRD began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe and Central Asia. It does so by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). Operating assets for 2009 were EUR 6.1 billion (USD 8 billion).
About Crédit Agricole Serbia: Crédit Agricole Serbia is a subsidiary bank of Crédit Agricole Group of France, a global financial group which operates in 74 countries throughout the world. Crédit Agricole Serbia offers customers a range of traditional products and services, including loans and deposits in euros or local dinars. Since 2007, it has distributed Crédit Agricole Life’s life insurance products. A leasing subsidiary was set up and began operating in late 2007. Crédit Agricole Serbia operates through 83 branches across Serbia. In 2009, it reported EUR 36.6 million (USD 50 million) in assets and 153,000 clients.
Sources and Resources:
[1] European Bank for Reconstruction and Development (EBRD) Press Release, February 14, 2011, “Crédit Agricole and EBRD Join Forces in Serbia’s Agricultural Sector – Cooperation Under Warehouse Receipts Framework”, http://www.ebrd.com/english/pages/news/press/2011/140211a.shtml
MicroCapital.org Article, May 7, 2010, “European Bank for Reconstruction and Development (EBRD) Provides $1m For Small and Medium-sized Agricultural Enterprises to Tajikistani Bank Amonatbonk”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-provides-1m-for-small-and-medium-sized-agricultural-enterprises-to-tajikistani-bank-amonatbonk/
MicroCapital Microfinance Universe Profile: European Bank for Reconstruction and Development (EBRD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
MicroCapital Microfinance Universe Profile: Crédit Agricole Serbia, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Cr%C3%A9dit+Agricole+Serbia
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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