A guarantee Fund was created for grains storage certificates

The Government established this week a guarantee Fund for grain storage certificates. The idea belongs to the Ministry of Agriculture and Food Industry and aims to implement the Law regarding the storage of grains and the regime of storage certificates on grain production. According to authorities, the storage certificates for cereals allows for financing by agricultural producers, by selecting the most advantageous time for selling their crop, as well as using the grains production efficiently, as a guarantee for obtaining credits/ loans. The Government approved the nominal composition of the Administration Council of the Fund for the years 2007-2009. The Council has a term of 30 days to name the administrator of the Fund. The Council is composed of five members, the president in the person of Victor Tozlovan, the head of the State Inspectorate for Cereal Production and Panification. One of the members of the Administration Council, vice-president of the Union of Associations of Agricultural Producers, “Uniagroprotect”, Alexandu Slusari told Info-Prim Neo that the Fund will not be able to function at least for a year due to the grain deficit caused by the consequences of the drought. As soon as producers will possess sufficient reserves of grain, they should try to submit a part of these to elevators, which will release storage certificates. This certificate will enable producers to obtain credits from banks, by using the deposited grain as guarantee. At the first stage, the Fund will approve the model of storage certificates, and will then guarantee for contractors for credits in the name of producers, based on these certificates, said Slusari. Although the value of the Fund was not established yet, its financial resources will be created based on budgetary resources as well as contributions from donors.