- 1.1 Mill. citizens 12.000 SME comp. 25.000 enterpren eurs - 100.000 farmers

1. Branch NS Region • - 1.1 Mill. citizens • 12.000 SME comp. • 25.000 enterpreneurs • - 100.000 farmers • 25 domestic banks • 4 foreign banks

2. AGRO LENDING PRESENTATION ProCredit Bank

3. AGRICULTURE • 21% of GDP, second only to manufacturing (24%) • 25% of GDP togethter with associated food and beverage product. • 44% of the population lives in rural areas, 1/3 of whom rely wholy or in part on agriculture for their livelihoods. • 17% of total exports is export of agro products, processed food, beverages, and tobacco products. • Agriculture producers: private farmers, Agro Kombinats (460) and co- operatives (400). • Private farmers own 83% of the 3.35 mill. ha of arable land. Most farm 2- 5 ha, usualy in several plots • 3% of land is irrigated

4. Introduction • MFB started in March 2002. • Faculty of Agriculture,Novi Sad • Great potentials in Vojvodina and Serbia • Novi Sad-training and database centre • Agriculture-long tradition in Vojvodina • Vojvodina-regions

5. Variety of agricultural production Vegetables/Crops Fruits/Crops Vegetables/Hogs Hogs/Crops Herbs Cows/Crops Crops

6. Variability of corn income by regions

7. Variability of the price of corn throughout a year

8. Crop Year

9. Agro Credit Technology Agricultural analysis

10. Technological map • Lists all necessary operations • Gives the months for this operations • Includes all expenses ( seed,fertilizers,fuel…) • Map has two sections • Comment • We have about 40 maps • Maps for cattle breeding

11. Example of Technological Map

12. Financial resume • Continuation of the technological map • Role is to sum up the expenses listed in t.m. • The fin.resume does not include the yields eaten by animals • Serbian Chamber of Commerce • Stock exchange

13. Financial resume for crops and vegetables

14. Income statement and Cash flow • Is filled in with data based on the financial resume • Income and expenses presented on a monthly level • Indicates cash flow monthly excluding any transaction which is not financial-barter trade • Seasonal nature of the business • -Non-equal payment plan

15. Risks in agricultural production • Agricultural production is specific in many ways: • it is done in the open air • returns on investments is a slow process • Risks that have been very important for the bank are the following: 1.Long production process 2.Weather conditions 3.Diseases 4.Quality of soil

16. Risk in Agriculture Risk Mesures taken for Risk Reducement

17. Meteorological posts in Vojvodina

18. Veterinary Institutes in Vojvodina

19. Types of soil in Vojvodina

20. Structure of the current production in Agriculture

21. Structure of sales in Agriculture

22. Products • Individual loans • Credit associations • Loans for mechanisation (Belarus, Claas, John Deer...) • ADF cooperation

23. Agriculture perspective • Privatization and restructuring of AK and agro-processors • Land restitution and strenghten land markets • Rejuvanate the food marketing chain • Rehabiltate dranage canals • Regional development • Rural finance

24. Branch Novi Sad