setting-up the conditions to establish a credit guarantee scheme … tf cgs_eng_june 2014.pdf ·...
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First Task Force Meeting Task Force on Credit Guarantee Scheme Kyiv, 11 June 2014
EASTERN EUROPE AND SOUTH CAUCASUS INITIATIVE
Setting-up the Conditions to Establish a Credit Guarantee Scheme for Agribusiness SMEs in Ukraine
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• OECD countries account for 69.4% of the world’s GNI.
• A forum to address the economic, social and governance challenges of globalisation as well as to
exploit its opportunities.
• A setting where governments can compare policy experiences, seek answers to common problems, identify good practice, and co-ordinate domestic and international policies.
OECD at a glance
Note: This map is for illustrative purposes and is without prejudice to the status of or sovereignty over any territory covered by this map.
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Armenia, Azerbaijan, Belarus, Georgia, Republic of Moldova, and Ukraine
Eastern Europe and South Caucasus Initiative
Afghanistan, Kazakhstan, Kyrgyz Republic, Mongolia, Tajikistan, Turkmenistan, and Uzbekistan
Central Asia Initiative
The OECD Eurasia Competitiveness Programme OECD Council Mandate covering two regions and thirteen countries
The OECD Eurasia Competitiveness Programme was launched in 2008 and aims at contributing to economic growth and development in eleven countries of the former Soviet Union as well as Afghanistan and Mongolia
Co-chaired by Poland and Sweden
Co-chaired by EU and Kazakhstan
Note: This map is for illustrative purposes and is without prejudice to the status of or sovereignty over any territory covered by this map.
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1. Project objectives / Background
2. Launch of the CGS Task Force (TF)
• Present the project and share the objectives with the TF members
3. Initial assessment and preliminary findings
• Share key findings on the challenges of access to finance for agribusiness SMEs
• Discuss an introductory assessment of the four pilot regions
4. Project work plan
• Present the work already conducted by the OECD
• Confirm project’s activities until September 2015
5. Decisions and next steps
• Approve decisions for the OECD-Ukraine Co-ordination Council’s consideration
• Present and agree the project’s next steps
• Approve the task list for the Task Force members
• Finalise the Task Force appointments
The objective of today’s meeting is to launch the activities of the Task Force and discuss an initial assessment and the project’s work plan
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5 CONFIDENTIAL – NOT FOR DISTRIBUTION
The objective of the project is to establish a Credit Guarantee Scheme with focus on SME Agribusiness in Ukraine
BANKS (PRIVATE PLAYERS)
GUARANTEE SCHEME
STATE
Guarantee Coverage
Counter-Guarantee Financial Support Legal Environment and Framework
SMEs Bank Loan
Guarantee commission (fee)
Source: England’s Financial Service Authority (2005), A Framework for Guarantee Schemes in the EU. A discussion paper, London. Green, A. (2003), Credit Guarantee Schemes for Small Enterprises: An Effective Instrument to Promote Private Sector-Led Growth?, UNIDO Working Paper n. 10, UNIDO, Vienna.
An example of Credit Guarantee Scheme
CGSs act as an insurance mechanism against defaults. The lender’s risk is lowered, banks have an incentive to lend, as risk is shared and diversified
Repayment
In case of default of the SME, the Guarantee Scheme reimburses a proportion of the loan to the bank, e.g. around 60% in the agricultural sector
CGSs should at least operate with no-losses
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6 CONFIDENTIAL – NOT FOR DISTRIBUTION OECD
The Sector Competitiveness Strategy Report of Ukraine was released in January 2012
Phase I findings and recommendations are summarised in the Sector Competitiveness Strategy for Ukraine Report
REMINDER
Solu
tio
ns
to
key
po
licy
bar
rie
rs
Access to Finance Land Reform Complete the land reform to provide land as
collateral
Human Capital Development
Improve workplace training, such as Internship Schemes during agricultural degrees Workplace training
Improve the current system of VET Vocational Education
and Training
Rewrite curricula to include courses such as: animal husbandry, scientific feeding and herd monitoring Rewrite curricula
Risk-sharing facilities Credit Guarantee Schemes
Supply chain financing
Examples
Insurance and derivatives market
Develop an agricultural insurance market
Develop a derivative market to hedge producers from price movements
Access to finance and human capital development are considered hurdles to growth
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Phase II Sector Competitiveness Strategy provides policy recommendations on the CGS implementation in Ukraine
• The main output of the SCS Phase II is the handbook
“Implementing Credit Guarantee Scheme in Ukraine – The Case of Agribusiness”, launched in Kyiv on 14 November 2012
• Main recommendation: implementation of a credit guarantee scheme to improve access to finance in agribusiness
• Pilot project focusing on regions with high agricultural production and low access to credit
• Six-step approach to the design and implementation of a credit guarantee scheme
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There are several examples of ways to establish credit guarantee schemes
OPERATIONAL AND GOVERNANCE
EXAMPLES
OWNERSHIP
GEOGRAPHICAL SCOPE
FUNDING
• Public: Estonia, Lithuania (Government), Mexico, Nigeria (Government and Central Bank), Lithuania (Ministry of Agriculture)
• Private: Senegal (Members of Cooperative Federation) • Public-Private: Tunisia (Government, financial associations, international donors and banks)
• International: European Investment Fund, Development Credit Authority, USAID, PROPARCO, Alliance for a Green Revolution in Africa
• National: Lithuania, India, Netherlands, Uganda • Regional: Guarantee Fund Republica Srpska (Bosnia and Herzegovina)
• Public: India, Mexico, Lithuania • Private: Rabobank Netherlands • Public-Private: Estonia, Senegal (50%/50%)
COVERAGE RATIO
• 80%: Estonia • 70%: Lithuania (for young farmers - 80%) • 55%: Italy (long term – 75%) • 50%: Republica Srpska (Bosnia and Herzogovina), Tanzania
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9 CONFIDENTIAL – NOT FOR DISTRIBUTION
CGSs are generally not aiming at profits, but they can also be profitable
Korea
COUNTRY RESULTS, 2010
Profit of €159m
NAME
KODIT
START DATE
1976
Lithuania
Small profit of € 725k Lithuania Rural
Credit Guarantee Fund
1997
Slovak Republic
Loss of €9m, while it was profitable in 2009 (€1m)
Slovak Guarantee and Development
Bank 1991
PROFIT-MAKER
LOSS-MAKER
NO LOSSES
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TARGETING
PARTNERNSHIP
What is the objective of the scheme?
Who does the scheme target?
How to identify partner banks?
How to cover administrative costs?
How to assess risks?
1
2
PRICING 4
RISK MANAGEMENT 5
• Objectives • Financial Sustainability
• Identification of partner banks
• Identify relevant segments • Eligibility criteria
• Link to risk • Average fees
• Coverage ratio • Payment • Monitoring
MISSION
SHORT TERM ACTIONS
How to set up, run and supervise the scheme?
• Supervision • Roles
OPERATIONS AND GOVERNANCE 6
Six elements have been identified to properly design and manage a CGS
MEDIUM TERM DIRECTIONS
3
Sources: OECD (2012), Implementing Credit Guarantee Schemes in Ukraine: the Case of Agri-business, OECD, Paris
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1 MISSION
Some initial work has been already done to identify mission, targeting and potential partnerships for the CGS
TARGETING 2
PARTNERNSHIP 3
• Farm size: 100–2000 ha land • Borrower type: agriculture, livestock, forestry, rural lending • Pilot regions: Cherkasy, Vinnytsia, Poltava, Kharkiv • Bankable agribusiness SME projects that benefit from multiple risk assessments
Notes: * OECD desk research ** Does not lend to farms <400 ha
• An independent credit guarantee instrument working under the regulation of the National Bank of Ukraine
• Financial instrument with the aim of supporting credit liquidity • Financially sustainable over time • Support credit-constrained agricultural SMEs in rural areas
• Examples of the banks lending to agribusiness*: Metabank, Crédit Agricole, BMBank, Aval, UniCredit, Alpha-Bank, Ukreximbank, Prominvestbank, Kredobank, Megabank
• Examples of banks lending to SMEs: Nadra Bank, Pravex Bank, UkrSibbank, Kredobank, Metabank, Crédit Agricole**, VTBBank, ERSTE Bank
Precise eligibility criteria will help in targeting credit constrained SMEs, therefore raising the impact of the scheme
The OECD has started approaching commercial banks and international donors to gauge their interest in participating in the CGS project
The Mission Statement is the guiding principle of the CGS and should underpin and inform any design mechanisms and criteria of the scheme
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12 CONFIDENTIAL – NOT FOR DISTRIBUTION
Selection of the regions and further analysis
1. Review the selected four pilot regions and discuss the feasibility of undertaking further work. Discuss potential alternative regions.
2. Further review the current legislation and regulatory framework in Ukraine, compare it with good practices from OECD and non-OECD economies, assess the compatibility with the establishment of the credit guarantee scheme
3. Conduct additional analysis on access to finance for agribusiness SMEs in the pilot regions
4. Prepare a survey to banks operating in the pilot regions
• Recommended topics: lending activities for agribusiness SMEs, potential interest and feedback on the CGS
5. Further identify and establish contact with potential financial contributors to the CGS, particularly international donors
Project plan and next steps
6. Approval of overall project’s work plan
7. Approval of next steps: immediate and mid-term
8. Next Task Force meeting on 15 October 2014
Task Force members appointments
9. Review key stakeholders to be involved: National Bank of Ukraine, Ministry of Economic Development
and Trade, Ministry of Finance, and the Ministry of Agrarian Policy and Food
10. Confirm appointment of the Chairman and members of the Task Force
Proposals to be discussed and approved today by the Task Force for the OECD-Ukraine Co-ordination Council’s consideration
FOR APPROVAL BY THE TASK FORCE
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CONFIDENTIAL – NOT FOR DISTRIBUTION 13
The objective of today’s meeting is to launch the activities of the Task Force and discuss an initial assessment and the project’s work plan
1. Project objectives / Background
2. Launch of the CGS Task Force (TF)
• Present the project and share the objectives with the TF members
3. Initial assessment and preliminary findings
• Share key findings on the challenges of access to finance for agribusiness SMEs
• Discuss an introductory assessment of the four pilot regions
4. Project work plan
• Present the work already conducted by the OECD
• Confirm project’s activities until September 2015
5. Decisions and next steps
• Approve decisions for the OECD-Ukraine Co-ordination Council’s consideration
• Present and agree the project’s next steps
• Approve the task list for the Task Force members
• Finalise the Task Force appointments
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Identify key stakeholders and gauge their interest
Design key features and risk management procedures
Advise on possible governance options and organisational structures
Empowerment through capacity building seminars for government officials and relevant stakeholders
Screen potential sources of funding
MAIN ACTIVITIES GOVERNANCE
2015
TIM
ELIN
E
2016
Establishing a Credit Guarantee Scheme for Agribusiness SMEs in Ukraine – 24 months
2014 2013
This 2-year project aims at establishing a pilot Credit Guarantee instrument for SMEs in the agribusiness sector
• Members from the OECD, Ministry of Economic Development and Trade, Ministry of Finance, Ministry of Agrarian Policy and Food and National Bank of Ukraine
• Summarizes agreed actions and next steps
• Provides data and contacts in the relevant institutions
• Reviews material and provide feedback
• Proposes decisions to be endorsed by the OECD-Ukraine Co-ordination Council (CC)
• Follows up with the OECD to facilitate implementation and remove potential operational obstacles
TASK FORCE
• Coordinates the project
• Animates the Task Force meetings
• Analyses data and develops materials
• Identifies key insights and proposes recommendations for discussion
OECD INTERNATIONAL CONSULTANCY
- Starting date: 1st September 2013
- Foreseen end date: end March 2016
FOR APPROVAL BY THE TASK FORCE
Preliminary work
• Provides expertise
• Supports the implementation of the CGS in co-operation with the relevant Ukrainian institutions and stakeholders
• Prepares capacity building seminars
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OECD-Ukraine Co-ordination Council
Ministry of Finance
Ministry of Agrarian Policy
Civil society and private sector Representatives
Relevant ministries and government agencies
Chaired by Deputy Prime Minister of Ukraine
OECD + Sweden (donors)
The Governance of the CGS Project still needs to be confirmed, but will involve representatives of the Government, Financial institutions and OECD
National Bank of Ukraine
Ministry of Economic Devlpt.
Representatives
TBC
Co-chaired by Minister of Economic Development and Trade
Representatives
TBC
Representatives
TBC
Representatives
TBC
Task Force of the CGS Project
Chairman:
Ministry of Agrarian
Policy and Food of
Ukraine
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CONFIDENTIAL – NOT FOR DISTRIBUTION 16
The objective of today’s meeting is to launch the activities of the Task Force and discuss an initial assessment and the project’s work plan
1. Project objectives / Background
2. Launch of the CGS Task Force (TF)
• Present the project and share the objectives with the TF members
3. Initial assessment and preliminary findings
• Share key findings on the challenges of access to finance for agribusiness SMEs
• Discuss an introductory assessment of the four pilot regions
4. Project work plan
• Present the work already conducted by the OECD
• Confirm project’s activities until September 2015
5. Decisions and next steps
• Approve decisions for the OECD-Ukraine Co-ordination Council’s consideration
• Present and agree the project’s next steps
• Approve the task list for the Task Force members
• Finalise the Task Force appointments
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17 CONFIDENTIAL – NOT FOR DISTRIBUTION
The preliminary assessment shows that there is no correlation between the financing opportunities for agribusiness SMEs and the agricultural outputs in the Oblasts
• Access to finance is the top business environment constraint in Ukraine
• Ukraine has the highest access to finance in the Eastern Partner region, although much lower than the EU area and the financing has been declining
• Lending in agribusiness is perceived as a risky operation, even more in the pilot regions
• Regions with relatively high contributions to agricultural production do not receive a proportional financial support from state programmes to their needs
• The suggested pilots Cherkasy, Vinnytsya, Kharkiv and Poltava Oblasts are key agricultural regions in Ukraine and are under strong financial pressure
• In Ukraine, a state guarantee mechanism exists but it is less targeted on agribusiness SMEs what might lead to their exclusion due to competition from large agri-holdings and heavy regulations.
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CONFIDENTIAL – NOT FOR DISTRIBUTION 18
Business Environment Constraints in Ukraine
• More than one in five
business owners and top managers from the 1,002 firms asked encounters difficulty in accessing finance.
Source: Ukraine (2013), Enterprise Surveys, IFC
Access to finance is the top business environment constraint in Ukraine
2.1
2.5
2.9
3.9
5.9
7.7
11.9
15.6
19.1
21.3
0 5 10 15 20 25
Business licenses and permits
Inadequately educated workforce
Customs and trade regulations
Access to land
Tax administration
Practices of the informal sector
Political instability
Tax rates
Corruption
Access to finance
Percent of firms
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0%
20%
40%
60%
80%
100%
120%
140%
160%
EU Armenia Azerbaijan Belarus Georgia Moldova Ukraine
2008
2012
Ukraine has the highest access to finance in the Easter Partner region, although much lower than the EU area and declining
Domestic credit to GDP
• Domestic credit to GDP declined significantly from 74% to 56% in only 3 years.
Source: World Development Indicators Database, World Bank
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Lending in agribusiness is perceived as a risky operation, even more in the pilot regions
Higher risk lending to agribusiness is attributed to:
• Lack of collateral (moratorium on purchase of agricultural land till 2016)
• Weather contingency, storing facilities, transport infrastructure
• Moral hazard linked to awareness of a non-return possibility (experience of a state guarantees program in the 90-ies)
• Lower financial literacy among the rural population and agricultural SMEs
Annual average interest rates
5.6% spread for lending in agribusiness
All sectors
Agribusiness
Sources: National Bank of Ukraine, Statistics, Cost of Credit (2012) and OECD Statistics, interest rates (2012).
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Regions with relatively high contributions to agricultural production do not receive support proportional from state programmes to their needs
Regions with an important agriculture sector still have low state support
Note: Agricultural state support programmes include i) interest rate compensation programme, and ii) the leasing programme. Source: SSCU (2013), Agriculture of Ukraine Statistical Yearbook 2012, SSCU, Kyiv. Ministry of Agriculture Policy and Food of Ukraine (2012), “Implementation of Financial Support to Agricultural Entities Through the Mechanism of Interest Rate Compensation and Lease Payments”, internal working document.
• In 2011, UAH 624 million
was allocated to the interest rate compensation programme for agricultural loans and the agricultural machinery leasing programme.
• Four pilot regions:
Cherkasy, Vinnytsia, Poltava and Kharkiv.
• Other regions for consideration: Khmelnytskiy and Donetsk
Identification of the pilot regions subject to feasibility of study visits
For discussion
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000
Inte
rest
rate
co
mp
en
sati
on
an
d L
easin
g p
rog
ram
me
2011,
UA
H '000
Gross agricultural output, UAH m
Vinnytsia Cherkasy Poltava
Kharkiv
Kyiv
Dnipropetrovsk
Khmelnytskyi
Donetsk
Regions with an important
agribusiness sector but low state
support
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The suggested pilots Cherkasy, Vinnytsya, Kharkiv and Poltava Oblasts are key agricultural regions in Ukraine with financial constraints
Region Agricultural land use
(square km) Rural population,
thousands Production of main agricultural crops
Main kinds of animal production
Cherkasy 14.5 546.9 6146.9 434.3
Vinnytsya 14.5 802.2 10124.3 259.1
Kharkiv 24.7 534.4 7422.1 129.7
Poltava 21.6 558.5 9361.9 110.9
4 regions total 75.3 2442.0 33055.2 934.0
Share in Ukraine 12.5% 17.3% 28.6% 29.2%
• The four regions together produce almost one third of total national agriculture output
• 17.3% of Ukraine’s rural population lives in the pilot regions
• The four regions account for 12.5% of total
Ukraine’s agricultural land
Source: State Statistics Service of Ukraine.
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Ukraine has set a state guarantee mechanism but it is less targeted at Agribusiness SMEs which might lead to their exclusion due to competition
The limit of state (local) guarantees is set by the law on State Budget of Ukraine - UAH 549,4 millions (2014)
In Agriculture, state guarantees are granted to
companies formed by the Agricultural fund for: • loans attracted for financing subsidies; • reimbursements; • compensations for losses to agricultural
producers.
*solely within the frames and directions defined by the law on the State Budget of Ukraine Source: Ministry of Finance of Ukraine; Zander, R., Miller, C. and Mhlanga, N. (2013), Credit Guarantee Systems for Agriculture and Rural Enterprise Development, FAO, Rome
State guarantees for partial or full execution of loan obligations of resident companies can be granted by the decision of the Cabinet of Ministers of Ukraine or based on international agreements*
Local guarantees may be granted by the decision of the Supreme Council of the Autonomous Republic of Crimea or the relevant local council
• Feasibility of the project;
• State’s objectives and priorities;
• Satisfactory financial condition of the borrower and;
• absence of a defaulted debt to the state from the part of the borrower.
Is set by the Cabinet of Ministers of Ukraine on the basis of calculations carried out by the Ministry of Finance on the suggestions of the Ministry of Economic Development and Trade and/or public authorities.
The decision on providing state guarantees, as well as , the coverage ratio and the type of the guarantee is decided by the Cabinet of Ministers of Ukraine based on the evaluation of the borrower, by the Ministry of Finance.
• The amount and duration of the transaction;
• Security given by the borrower;
• Factors affecting evaluation of the recovery rate;
• Probability of default of the borrower due to its financial position, sector of activity and prospects;
• Other economic conditions.
Maximum cap rate for SMEs that do not have a credit history or a rating based on balance sheet approach is 3.8% (to be adjusted from time to time in accordance with market conditions).
Must not exceed 80% of the outstanding loan or other financial obligation.
Risk assessment based on:
Guarantee premium
Coverage ratio
Ukraine’s state
guarantees
Basel-compliant EU guidelines for
guarantees
DECISION-MAKING BODY
CONSTRAINTS
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24 CONFIDENTIAL – NOT FOR DISTRIBUTION
The objective of today’s meeting is to launch the activities of the Task Force and discuss an initial assessment and the project’s work plan
1. Project objectives / Background
2. Launch of the CGS Task Force (TF)
• Present the project and share the objectives with the TF members
3. Initial assessment and preliminary findings
• Share key findings on the challenges of access to finance for agribusiness SMEs
• Discuss an introductory assessment of the four pilot regions
4. Project work plan
• Present the work already conducted by the OECD
• Confirm project’s activities until September 2015
5. Decisions and next steps
• Approve decisions for the OECD-Ukraine Co-ordination Council’s consideration
• Present and agree the project’s next steps
• Approve the task list for the Task Force members
• Finalise the Task Force appointments
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25 CONFIDENTIAL – NOT FOR DISTRIBUTION
Q4
2013
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
High-level endorsement of concept and constitution of the Task Force
Pre-feasibility and feasibility studies
Design of the key features of the scheme
Design of rigorous risk management procedures
Securing sources of funding for the scheme
Design of scenarios for governance and organisation of the CGS
Capacity Building
Proposed implementation plan, key activities and timeline for the next two years
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26 CONFIDENTIAL – NOT FOR DISTRIBUTION
Pre-feasibility and feasibility studies are the key deliverables of the project, and will set the ground for the establishment of the most relevant instrument
Content Due date
Pre-feasibility study
• Advise on the identification of partner institutions for the CGS, including private commercial banks
• Support to the Task Force in the formulation of the CGS objectives
• Initial recommendations on immediate actions to design and launch the CGS
October 2014
Feasibility study
• Action plan in co-operation with the Ukrainian partner institutions in charge to establish the CGS, including its governance, timing and resources needed for each action
February 2015
Inte
rnat
ion
al e
xpe
rt a
nd
OEC
D
The OECD provides expertise and ensures the co-ordination of the pre-feasibility and feasibility studies
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27 CONFIDENTIAL – NOT FOR DISTRIBUTION
A survey is to be prepared by the OECD and distributed by the National Bank of Ukraine to the banks operating in the selected four pilot regions
Recommended topics: lending activities for agribusiness SMEs, potential interest and feedback on the CGS
Some example of questions
• What is the amount of lending to agribusiness SMEs in the pilot regions?
• What is the profile of the main agribusiness clients in the regions?
• When lending to agribusiness SMEs, which are the main issues faced by banks?
• What is the banks’ opinion on the establishment of a CGS for agribusiness SMEs?
• Would banks approve more lending operations if supported by the CGS?
• Are banks interested in a financial contribution to the CGS?
Expected timeline
• October 2014 - discussion of the questionnaire during the upcoming TF meeting;
• November 2014 - dissemination of the questionnaire among banks;
• January 2015 - data processing and analysis;
• February 2015 - presentation of the finding of the survey at the TF meeting.
The survey will be presented at the next Task Force meeting for approval, prior to its distribution
For discussion
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The objective of today’s meeting is to launch the activities of the Task Force and discuss an initial assessment and the project’s work plan
1. Project objectives / Background
2. Launch of the CGS Task Force (TF)
• Present the project and share the objectives with the TF members
3. Initial assessment and preliminary findings
• Share key findings on the challenges of access to finance for agribusiness SMEs
• Discuss an introductory assessment of the four pilot regions
4. Project work plan
• Present the work already conducted by the OECD
• Confirm project’s activities until September 2015
5. Decisions and next steps
• Approve decisions for the OECD-Ukraine Co-ordination Council’s consideration
• Present and agree the project’s next steps
• Approve the task list for the Task Force members
• Finalise the Task Force appointments
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Selection of the regions and further analysis
1. Review the selected four pilot regions and discuss the feasibility of undertaking further work. Discuss potential alternative regions.
2. Further review the current legislation and regulatory framework in Ukraine, compare it with good practices from OECD and non-OECD economies, assess the compatibility with the establishment of the credit guarantee scheme
3. Conduct additional analysis on access to finance for agribusiness SMEs in the pilot regions
4. Prepare a survey to banks operating in the pilot regions
• Recommended topics: lending activities for agribusiness SMEs, potential interest and feedback on the CGS
5. Further identify and establish contact with potential financial contributors to the CGS, particularly international donors
Project plan and next steps
6. Approval of overall project’s work plan
7. Approval of next steps: immediate and mid-term
8. Next Task Force meeting on 15 October 2014
Task Force members appointments
9. Review key stakeholders to be involved: National Bank of Ukraine, Ministry of Economic Development
and Trade, Ministry of Finance, and the Ministry of Agrarian Policy and Food
10. Confirm appointment of the Chairman and members of the Task Force
Proposals to be discussed and approved today by the Task Force for the OECD-Ukraine Co-ordination Council’s consideration
FOR APPROVAL BY THE TASK FORCE
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30 CONFIDENTIAL – NOT FOR DISTRIBUTION
The next steps include the analysis of the legal framework for establishing a CGS and the consultation with the various stakeholders on the priority regions
Immediate
actions
• Prepare the survey to banks
• Present analysis of key findings from the survey
• Share key findings of the pre-feasibility study, including recommendations on relevant laws and regulations to support the CGS
• Update on the interaction with potential financial contributors to the CGS
Until next TF
meeting in
October 2014
• Approve proposals for OECD-Ukraine Co-ordination Council’s consideration
• Confirm Chairman and members of the Task Force
• Provide information on existing legislation affecting the CGS
• Provide contacts and facilitate field missions
• Launch the survey to banks
• Endorse the suggested reforms of laws and regulations
• Provide comments on the analysis of the survey
• Provide feedback on interactions with potential financial contributors
OECD Task Force
• Further analysis on access to finance for agribusiness SMEs, incorporating Task Force feedback
• Meet with banks and international donors to promote the CGS
• Carry out an assessment of existing legislation to assess compatibility with the CGS
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The final composition of the Task Force is still to be confirmed
• Chairman of the Task Force Ministry of Agrarian Policy and Food of Ukraine
• Representatives from the National Bank of Ukraine
To be appointed
• Representatives from the Ministry of Economic Development and Trade
To be appointed
• Representatives from the Ministry of Finance To be appointed
• Representatives from the Ministry of Agrarian Policy and Food
To be appointed
FOR DISCUSSION BY THE TASK FORCE
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Ms. Kateryna Obvintseva Policy Analyst e-mail: [email protected]
Contact details
Mr. Antonio Somma Head, OECD Eurasia Competitiveness Programme Tel: + 33 1 45 24 93 90 e-mail: [email protected]
Ms. Gabriela Miranda Project Manager Ukraine Tel: + 33 1 45 24 95 01 e-mail: [email protected]