Global Warehouse Finance Program
In countries where a legal system does not exist for banks to lend money to farmers, agriculture producers, or traders against warehouse receipts as collateral,

 

IFC is able to work under the Collateral Management Agreement (CMA) or Stock Monitoring Agreement (SMA), which are two common agreements used by banks.

About 75 percent of the world‟s poor are rural and involved in farming and agriculture. The program is part of IFC‟s efforts to increase access to finance for farmers and to promote agriculture development as a means of alleviating poverty.

The GWFP will also provide advisory services to emerging market banks to help promote the acceptance of warehouse receipts as collateral for the short-term loans.

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Makiko Toyoda presents the GWFP

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The objectives of the program are:

bulletPromoting access to finance for farmers

bulletIncreasing market efficiency so that commodity producers will have more options to time the sale of the products and have better cash flow management

bulletLowering transaction cost and developing the local financial markets which can serve the agriculture sector

bulletMobilizing and preserving jobs

bulletCreating an enabling environment

objectives of the program are:

  • Promoting access to finance for farmers
  • Increasing market efficiency so that commodity producers will have more options to time the sale of the products and have better cash flow management
  • Lowering transaction cost and developing the local financial markets which can serve the agriculture sector
  • Mobilizing and preserving jobs
  • Creating an enabling environment.

 

global3 Thierry Senechal of the ICC Banking Commission
global4Shezad Mumtaz and Gboyega Songonuga of IFC

 

 

 

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