1. EastAgri 2006 Annual Meeting
29 October 2004
EastAgri 2006 Annual Meeting
Berlin
5 May 2006

2. 29 October 2004
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
Farm
inputs
Food
service
production
Trade and
distribution
Processing
Wholesale
and trade
retail
Non food
Consumers

3. Rabo Agri-Activities in CEE/CIS
29 October 2004
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
29 October 2004
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
29 October 2004
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!
29 October 2004
Thanks for your attention!
Adnan Mirzoyev
Rabobank