President of Ukraine Volodymyr Zelenskyy has signed Law No. 9266 "On Agricultural Notes". It will come into force on January 1, 2025. What are "agrarian notes" and what advantages do they provide in lending to agricultural production , the press service of the Government told , UNN reports.
Details
The adopted Law introduces a new financial instrument for lending to agricultural production in Ukraine - agricultural notes. The Cabinet of Ministers noted that the new Law does not apply to the relations regulated by the Law "On Agricultural Receipts". Traditional paper agricultural receipts will also continue to be used.
The Cabinet of Ministers is convinced that electronic agricultural notes have at least six advantages:
- As a non-issue security, an agrarian note is an independent subject of circulation in the capital markets, so a lender can easily sell it and use the proceeds to further lend to farmers under the new electronic agrarian notes.
- The new law expands both the range of entities that can issue electronic agricultural receipts to include agricultural cooperatives and the types of collateral: livestock products and primary processing.
- Electronic agricultural notes will simplify and make it cheaper to issue, circulate and cancel them compared to traditional paper receipts. Farmers will also be able to issue an electronic agricultural note from their personal e-cabinet in a specially created Register of Agricultural Notes without paying money for notary services.
- The law will guarantee the reliability of the agrarian note. If the debtor fails to fulfill its obligations under the agrarian note, the creditor may obtain a writ of execution for the relevant recovery by applying to the Agrarian Note Register.
- Another advantage of the document is the expansion of possible pledge options, including the possibility of pledging live animals and products of animal origin, as well as products of their primary processing, which creates conditions for attracting resources to livestock farms.
- In addition, the law will help agricultural producers gain greater access to credit, increase the number of lenders able to finance the agricultural sector, and reduce the cost of obtaining money.
Optional
The day before, the Cabinet of Ministers registered in the Verkhovna Rada draft law No. 11063 "On the State Agrarian Register". The document improves the mechanism for providing support to Ukrainian farmers.
As part of the preparatory work for the assessment of Ukraine's application for EU membership, members of the Committee on Agrarian Policy met with representatives of the European Union. They discussed land reform and important aspects of the implementation of the EU's common agricultural policy.