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Berlin 5 May 2006

EastAgri 2006 Annual Meeting. Berlin 5 May 2006. Food . retail. Trade and . Farm . Farm . Wholesale . Consumers. distribution. production. Processing. inputs. and trade. Food . service. Non food. Who is Rabobank?.

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Berlin 5 May 2006

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  1. EastAgri 2006 Annual Meeting Berlin 5 May 2006

  2. Food retail Trade and Farm Farm Wholesale Consumers distribution production Processing inputs and trade Food service Non food Who is Rabobank? • Rabobank is the largest financial service corporation in the Netherlands • Rabobank is the only non-Government AAA rated bank in the world • Rabobank has a food & agribusiness focus outside the Netherlands • Rabobank is founded on industry knowledge and awareness to maintain our understanding and credit integrity and ensure appropriate financial solutions are offered to clients

  3. Rabo Agri-Activities in CEE/CIS • Ownership based financing (Rabo Trading) in Poland, Russia, and Turkey • Strong position in Polish F&A market via BGZ Bank & Rabo Polska • Stock finance & Pre-export Finance in Kazakhstan (incl. EBRD program) • Pre-export Finance of local traders & financing of multinationals in Ukraine

  4. Why we think Ukraine WRP development has stalled • Some parts of the law have indeed been implemented (Primary legislation has been implemented but not yet secondary legislation) • Therefore enforceability of pledged WRs is still not clear (weak Legal Opinion) • Certification of warehouses is done, introduction of new WRs, no more F13 • But lack of strong government commitment • No Indemnity Fund (here is a role for Government + World Bank or other multilateral donors to capitalize the indemnity fund) • Grain market is dominated by Multinationals who in principle do not need WRs as security to attract finance (compare with Kazakhstan/Bulgaria) • Grain is stored for short periods only (due to humidity and quick exports) so less need for WRs • Local banks are not enthusiastic yet, so EBRD/USAID program less effective

  5. Why we think WRP has become a success in Kazakhstan • Strong government/MoA backing in Kazakhstan • WRP suits the Kazakh grain market (long storage periods demand secure warehousing regime) • The sector is still dominated by local players (WR fits local players more than multinationals) • Also farmers are large/industrialized enough to obtain WR based finance from local banks • Strong backing EBRD through WR based financing via local banks (so WRs are widely used as security) • Strong support for Indemnity Fund by Government (funded by MoA and managed by MoA) • Legal opinions have confirmed out-of-court enforceability (banks very much like that)

  6. Thanks for your attention! Adnan Mirzoyev Rabobank Adnan.Mirzoyev@Rabobank.com

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