World Grain News: European Bank announces loans to finance Bulgarian grain receipts

by Teresa Acklin
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   LONDON — The European Bank for Reconstruction and Development will lend up to 200 million deutschemarks (U.S.$108.7 million) over the next four years to boost Bulgarian grain receipts financing, the agency announced recently.

   “The EBRD intends to extend credit lines of up to 50 million marks house receipts,” the bank said. The EBRD said it had sealed a loan agreement with Expressbank in Sofia, Bulgaria, for the first 10 million marks.

   Bulgaria last year introduced warehouse depository receipts aimed at enabling farmers to gain bank loans using receipts for grain deposited at silos as collateral. At present, bank lending against collateral of warehouse receipts is limited because trade in warehouse receipts has not yet started on the three local commodity exchanges.