Bank Guarantees for Forward Contracts in a Grain Marke

by Evgeny Lazorenko
Wednesday, October 20, 2021
Bank Guarantees for Forward Contracts in a Grain Marke

Minister of agrarian policy Roman Leshchenko took part in the presentation of the “Bank guarantee mechanism” for forward contracts in the grain market  

The Ukrainian Grain association presented a bank guarantee mechanism for forward contracts in the grain market, which aims to make the grain market in Ukraine civilized and put an end to such a problem as defaults on forward grain contracts through price increases.

Roman Leshchenko stressed that the issue of a bank guarantee for forward contracts of farmers is long overdue. "The proposed UGA mechanism equalizes the capabilities of all manufacturers, will allow them to get a higher price through a reliability premium, reduce the risk of potential losses to customers and guarantee the reliability of suppliers," said Roman Leshchenko.


He also added that the new mechanism will allow Ukraine to reach a qualitatively new level of exports and even better to develop the positive dynamics that the investing-in-ukraine/business-opportunities/agricultural/" rel="dofollow">agricultural sector is showing today.

"Foreign partners expect stability from us, and our agrarians expect a civilized market of grain and oilseeds according to clear rules," Roman Leshchenko said.

The minister pointed out that all this guarantees Ukraine additional filling of the state budget, foreign trade balance, foreign exchange earnings.

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