LENDING AGAINST WAREHOUSE RECEIPTS - EVIDENCE FROM SERBIA

Vlado Kovačević; Irena Janković; Vesna Paraušić

doi:10.5937/ekoPolj2102341K

Authors

Vlado Kovačević Institute of Agricultural Economics, Belgrade http://orcid.org/0000-0002-2902-6496
Irena Janković University of Belgrade – Faculty of Economics, Belgrade http://orcid.org/0000-0003-1115-4702
Vesna Paraušić Institute of Agricultural Economics, Belgrade http://orcid.org/0000-0001-6193-5297

DOI:

https://doi.org/10.5937/ekoPolj2102341K

Keywords:

warehouse receipts, public warehouses, , agricultural loans, indemnity fund

Abstract

The paper examines factors influencing development of the public warehouse system. Public warehouse system primary role is to provide stakeholders in agribusiness financing against stored commodity as collateral. Case study is conducted in Serbia. Interviews with banks, analyses of the public warehouse results, computational analyses and intensive literature research were conducted. Most important factors for lending against warehouse receipts from bankers perspectives are guarantee system performances followed by efficient enforcement procedure, efficient public warehouse surveillance, favourable central banks rating of warehouse receipts and subsidies. According to the results, Serbian public warehouse legal framework is properly established resulting in fast development of the public warehouse system in first years. After 2014 system deteriorated primarily due to the absence of inspection and Indemnity fund low guarantee performance. Lessons learned from Serbia point out that besides proper legal framework, implementation and favourable business environment are paramount for successful public warehouse system.

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