FINANCING AGRIBUSINESS: INSURANCE COVERAGE AS PROTECTION AGAINST CREDIT RISK OF WAREHOUSE RECEIPT COLLATERAL
DOI:
https://doi.org/10.5937/ekoPolj1702467JKeywords:
warehouse receipt, licensed warehouses, Compensation Fund, Professional Liability Insurance, capital requirement, solvency margin.Abstract
Financing agribusiness by warehouse receipts allows the agricultural producers to obtain working capital on the basis of agricultural products stored in licensed warehouses, as collateral. The implementation of the system of licensed warehouses and issuance of warehouse receipts as collateral for obtaining a bank loan is supported by the European Bank for Reconstruction and Development and it has had positive results in the neighbouring countries. The precondition for fnancing this project was to establish a Compensation Fund for providing insurance coverage for licensed warehouses against professional liability. However, in the lack of an adequate legal framework, the operational risk is possible to occur. Bearing in mind that Serbia has a tradition in insurance industry and a number of operating insurance companies, the issue is that of the economic beneft and the method of insuring against this risk. The paper will present a detailed analysis of the operation of the Fund, capital requirement, solvency margin and a critical review of the Law on Public Warehouses which regulates the rights and obligations of the Compensation Fund in the case of loss occurrence.
Downloads
Download data is not yet available.
References
1. Abakiene, A., Adomaityte, I., Cereskaite, V., Damanskis, A., Gavinavicius, Z., Guobys, R., Kausikas, R., Knabikiene, S. (2002): Financing of warehouse receipts Legel review, FAO Investmenet centre /EBRD Cooperation Programme, Report Servis – N.1-October 2002.
2. Ace Global Depository- Field Warehouse Receipt Financing, (available: https://www.google.rs/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwi6hvzx_nRAhXEPhQKHW4bB_sQFggYMAA&url=http%3A%2F%2Fwww.e5conline.com%2FDownload.aspx%3FDocid%3DONLDOC0513201623680&usg=AFQjCNEy55rPlCSzLoz7cdl4KYxdRMLD8Q&bvm=bv.146094739,d.d
3. Association of American warehouse control offcials (1996): Grain Warehouse Model Law.
4. Birovljev, J., Vojinovic Ž., Balaban, M. (2015): Potencial of agricultural production and its impact on insurance premium, Economics of Agriculture, The Balkan Scientifc Association of Agrarian Economists, Belgrade, The Institute of Agricultural Economics, Belgrade, Vol. 62, No. 3, pp. 693-705, (available: http://www.iep.bg.ac.rs )
5. Domazet, S., Radovic, V., Cvijanovic, D. (2016): Challenges of Increasing Competetiveness of Serbian Agro-Industry in the Processof Mitigation of Emergency Situation, Economics of Agriculture, Vol. 63, No. 2, pp. 767-779, The Balkan Scientifc Association of Agrarian Economists, Belgrade, The Institute of Agricultural Economics, Belgrade, (available: http://www.iep.bg.ac.rs )
6. Varangis, P., Larson, D. ( 1996): How warehouse receipts help commodity trading and fnancing, DECnotes ; no. 21. Washington, DC: World Bank. (dostupno: http://documents.worldbank.org/curated/en/237851468776694375/How-warehousereceipts-help-commodity-trading-and-fnancing)
7. Grant Thornton Revizit (2011): Izveštaj o reviziji Kompenzacionog fonda za 2010 I 2011. godinu.
8. Höllinger F., Rutter L. (2009): The Use Warehause Receipt Finance in Agriculture in EECA Countries , European Bank, FAO, Executive summary
9. International Finance Corporation (IFC) (2013): Warehouse Finance and Receipt Systems, A Guide For Financial Institutions in Emerging Economies, Washington.
10. Institut za prehrambene tehnologije (2011): Savremeni pristup u upravljanju skladištem za zrnaste kulture - Prirucnik za rad u javnim skladištima" ,Univerzitet u Novom Sadu.
11. Jovicic, D. (2016): Analiza rizika osiguranja od gubitka vrednosti robnog zapisa I Kompenzacioni fond, Doktorska disertacija, Univerzitet Singidunum, Beograd.
12. Jovicic, D., Jeremic, Lj., Milicevic, L., Zeremski, A. (2014): Warehouse receipts functioning to reduce market risk , Economics of Agriculture, Vol. 61, No. 2, pp. 347-365, The Balkan Scientifc Association of Agrarian Economists, Belgrade, The Institute of Agricultural Economics, Belgrade, (available: http://www.iep.bg.ac.rs )
13. Kovacevic, V., Zakic, V., Milovanovic, M., Subic, J., Jelocnik, M., (2016): Electronic warehouse receipts registry as a step from paper to electronic warehouse receipts , Economics of Agriculture, Vol. 63, No. 3, pp. 801-815, (available: http://www.iep.bg.ac.rs )
14. Kocovic,J., Šulejic, P. (2006):Osiguranje, Centar za izdavacku delatnost, Ekonomski fakultet u Beogradu.
15. Kiriakov, K. (2001): Implementation of System of Licensed Public Warehouses and Warehouses Receipts in Bulgaria, County Representative ACDI/VOCA, Bulgaria-Sofa.
16. Kompenzacioni fond Republike Srbije, Izveštaj o poslovanju Kompenzacionog fonda za 2013 godinu, http//www.kompenzacionifond.gov.rs (visited at: 03.03.2015)
17. Kompenzacioni fond Republike Srbije, Izveštaj o poslovanju Kompenzacionog fonda za 2014 godinu, http//www.kompenzacionifond.gov.rs (visited at: 03.03.2015)
18. Kompenzacioni fond Srbije, Pravila poslovanja Kompenzacionog fonda Srbije, http//www.kompenzacionifond.gov.rs (visited at: 03.03.2015)
19. Milanovic, N., Andžic, S., Butulija, M. (2017): Struktura kapitala kao determinanta vrednosti preduzeća, Oditor, Belgrade, Serbia, Vol. 3, No. 1, pp. 80-90.
20. Stankovic, D. (2010): Komparativna analiza Kompenzacionog fonda u sistemu javnih skladišta poljoprivrednih proizvoda, Magistarski rad, Ekonomski fakultet Beograd.
21. Zakon o javnim skladištima za poljoprivredne proizvode, Offcial Gazette of the RS, no. 41/2009
22. Zakon o osiguranju, Offcial Gazette of the RS, no. 101/2007
2. Ace Global Depository- Field Warehouse Receipt Financing, (available: https://www.google.rs/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwi6hvzx_nRAhXEPhQKHW4bB_sQFggYMAA&url=http%3A%2F%2Fwww.e5conline.com%2FDownload.aspx%3FDocid%3DONLDOC0513201623680&usg=AFQjCNEy55rPlCSzLoz7cdl4KYxdRMLD8Q&bvm=bv.146094739,d.d
3. Association of American warehouse control offcials (1996): Grain Warehouse Model Law.
4. Birovljev, J., Vojinovic Ž., Balaban, M. (2015): Potencial of agricultural production and its impact on insurance premium, Economics of Agriculture, The Balkan Scientifc Association of Agrarian Economists, Belgrade, The Institute of Agricultural Economics, Belgrade, Vol. 62, No. 3, pp. 693-705, (available: http://www.iep.bg.ac.rs )
5. Domazet, S., Radovic, V., Cvijanovic, D. (2016): Challenges of Increasing Competetiveness of Serbian Agro-Industry in the Processof Mitigation of Emergency Situation, Economics of Agriculture, Vol. 63, No. 2, pp. 767-779, The Balkan Scientifc Association of Agrarian Economists, Belgrade, The Institute of Agricultural Economics, Belgrade, (available: http://www.iep.bg.ac.rs )
6. Varangis, P., Larson, D. ( 1996): How warehouse receipts help commodity trading and fnancing, DECnotes ; no. 21. Washington, DC: World Bank. (dostupno: http://documents.worldbank.org/curated/en/237851468776694375/How-warehousereceipts-help-commodity-trading-and-fnancing)
7. Grant Thornton Revizit (2011): Izveštaj o reviziji Kompenzacionog fonda za 2010 I 2011. godinu.
8. Höllinger F., Rutter L. (2009): The Use Warehause Receipt Finance in Agriculture in EECA Countries , European Bank, FAO, Executive summary
9. International Finance Corporation (IFC) (2013): Warehouse Finance and Receipt Systems, A Guide For Financial Institutions in Emerging Economies, Washington.
10. Institut za prehrambene tehnologije (2011): Savremeni pristup u upravljanju skladištem za zrnaste kulture - Prirucnik za rad u javnim skladištima" ,Univerzitet u Novom Sadu.
11. Jovicic, D. (2016): Analiza rizika osiguranja od gubitka vrednosti robnog zapisa I Kompenzacioni fond, Doktorska disertacija, Univerzitet Singidunum, Beograd.
12. Jovicic, D., Jeremic, Lj., Milicevic, L., Zeremski, A. (2014): Warehouse receipts functioning to reduce market risk , Economics of Agriculture, Vol. 61, No. 2, pp. 347-365, The Balkan Scientifc Association of Agrarian Economists, Belgrade, The Institute of Agricultural Economics, Belgrade, (available: http://www.iep.bg.ac.rs )
13. Kovacevic, V., Zakic, V., Milovanovic, M., Subic, J., Jelocnik, M., (2016): Electronic warehouse receipts registry as a step from paper to electronic warehouse receipts , Economics of Agriculture, Vol. 63, No. 3, pp. 801-815, (available: http://www.iep.bg.ac.rs )
14. Kocovic,J., Šulejic, P. (2006):Osiguranje, Centar za izdavacku delatnost, Ekonomski fakultet u Beogradu.
15. Kiriakov, K. (2001): Implementation of System of Licensed Public Warehouses and Warehouses Receipts in Bulgaria, County Representative ACDI/VOCA, Bulgaria-Sofa.
16. Kompenzacioni fond Republike Srbije, Izveštaj o poslovanju Kompenzacionog fonda za 2013 godinu, http//www.kompenzacionifond.gov.rs (visited at: 03.03.2015)
17. Kompenzacioni fond Republike Srbije, Izveštaj o poslovanju Kompenzacionog fonda za 2014 godinu, http//www.kompenzacionifond.gov.rs (visited at: 03.03.2015)
18. Kompenzacioni fond Srbije, Pravila poslovanja Kompenzacionog fonda Srbije, http//www.kompenzacionifond.gov.rs (visited at: 03.03.2015)
19. Milanovic, N., Andžic, S., Butulija, M. (2017): Struktura kapitala kao determinanta vrednosti preduzeća, Oditor, Belgrade, Serbia, Vol. 3, No. 1, pp. 80-90.
20. Stankovic, D. (2010): Komparativna analiza Kompenzacionog fonda u sistemu javnih skladišta poljoprivrednih proizvoda, Magistarski rad, Ekonomski fakultet Beograd.
21. Zakon o javnim skladištima za poljoprivredne proizvode, Offcial Gazette of the RS, no. 41/2009
22. Zakon o osiguranju, Offcial Gazette of the RS, no. 101/2007
Downloads
Published
2017-06-30
How to Cite
Jovičić, D., Jeremić, L., & Jovanović, Z. (2017). FINANCING AGRIBUSINESS: INSURANCE COVERAGE AS PROTECTION AGAINST CREDIT RISK OF WAREHOUSE RECEIPT COLLATERAL. Economics of Agriculture, 64(2), 467–482. https://doi.org/10.5937/ekoPolj1702467J
Issue
Section
Original scientific papers
