Other lawyers will solve your legal problems. We make sure they do not arise
Bogdan Shapoval, a partner and legal practice manager of corporate law and securities with Jurimex LF participated in Ukrainian agrarian forum “Ukrainian market of grain-crops and oil-bearing crops: condition, tendencies, prospects” that was held on February 25, 2010 in The Ukrainian Chamber of Commerce and Industry.
The situation emerged in the agro industrial complex of Ukraine over the word financial crisis and internal economic instability inside the country motivated the participants of the forum to conjointly look for answers to such questions as condition and prospects of agrarian sector development in 2010, peculiarities of state and legal regulation of the industry, effectiveness of grain-crops processing products trading strategies, infrastructure improvement and available tools of agricultural enterprises financing and advisability of their usage.
In the course of the event for discussion of the aforementioned and other actual problems of the industry representatives of the Verkhovna Rada of Ukraine Committee of agricultural policy and land relationships, Ministry of Agrarian policy of Ukraine, sectoral associations and social business-organizations, top-managers of international and national agro companies, bankers, specialists of investment and law companies were invited.
Bogdan Shapoval in particular took an active part in meeting-discussion of the forum on “Bank crediting of agrarian business sector enterprises” topic. As was commented by Mr. Shapoval, in the light of considerable reduction of credit market activity worldwide and in Ukraine as a whole, increase of risks of credits cancellation failure and also owing to the specificity of agrarian business, the topic of crediting became one of the most relevant and complex as for the companies of financial sector as for the companies of agricultural industry. The participants of the discussion agreed that in the next 2-3 years noticeable reanimation in agrarian business enterprises crediting market of Ukraine should not be expected. Banks are not going to reduce credit rate whereas in order to reduce risks of credits non-cancellation they require liquid forms of provision. On the other hand, in order to reduce risks of credits non-cancellation and receive a credit on the security of future harvest, landowners have to insure it, but for such circumstance neither insurance companies, nor landowners appeared to be prepared.
“Theoretically, credit lending is even possible on the security of corporate rights, - Bogdan Shapoval added, - but, in the Ukrainian agricultural market private enterprises and limited liability companies prevail. In practice, even if an enterprise by the form of ownership is a joint-stock company, unfortunately, its activity is not always transparent and the documents are made up and sorted out legally incorrect that, in turn, reduces the chance of credit resources attraction.”
