Berlin 5 May 2006
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1 1 Berlin 5 May 2006 EastAgri 2006 Annual Meeting
description
EastAgri 2006 Annual Meeting. Berlin 5 May 2006. Food . retail. Trade and . Farm . Farm . Wholesale . Consumers. distribution. production. Processing. inputs. and trade. Food . service. Non food. Who is Rabobank?. - PowerPoint PPT Presentation
Transcript of Berlin 5 May 2006
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Berlin5 May 2006
EastAgri 2006 Annual Meeting
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Who is Rabobank?• Rabobank is the largest financial
service corporation in the Netherlands
• Rabobank is the only non-Government AAA rated bank in the world
• Rabobank has a food & agribusiness focus outside the Netherlands
• Rabobank is founded on industry knowledge and awareness to maintain our understanding and credit integrity and ensure appropriate financial solutions are offered to clients
Farm inputs
Food service
Farm production
Trade and distribution
Processing Wholesale
and trade
Food retail
Non food
Consumers
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Rabo Agri-Activities in CEE/CIS
• Ownership based financing (Rabo Trading) in Poland, Russia, and Turkey
• Strong position in Polish F&A market via BGZ Bank & Rabo Polska• Stock finance & Pre-export Finance in Kazakhstan (incl. EBRD
program)• Pre-export Finance of local traders & financing of multinationals in
Ukraine
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Why we think Ukraine WRP development has stalled• Some parts of the law have indeed been implemented (Primary legislation has been implemented but not yet secondary legislation)
• Therefore enforceability of pledged WRs is still not clear (weak Legal Opinion)
• Certification of warehouses is done, introduction of new WRs, no more F13
• But lack of strong government commitment
• No Indemnity Fund (here is a role for Government + World Bank or other multilateral donors to capitalize the indemnity fund) • Grain market is dominated by Multinationals who in principle do not need WRs as security to attract finance (compare with Kazakhstan/Bulgaria)
• Grain is stored for short periods only (due to humidity and quick exports) so less need for WRs
• Local banks are not enthusiastic yet, so EBRD/USAID program less effective
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Why we think WRP has become a success in Kazakhstan• Strong government/MoA backing in Kazakhstan• WRP suits the Kazakh grain market (long storage periods demand
secure warehousing regime)• The sector is still dominated by local players (WR fits local players
more than multinationals)• Also farmers are large/industrialized enough to obtain WR based
finance from local banks• Strong backing EBRD through WR based financing via local banks
(so WRs are widely used as security)• Strong support for Indemnity Fund by Government (funded by MoA
and managed by MoA)• Legal opinions have confirmed out-of-court enforceability (banks
very much like that)
