AgriFinance Community of Practice (CoP) - Movable Collateral 2021 | SME Finance Forum | 15 July 2021 | TBA

The SME Finance Forum is convening a group of agrifinance experts and practitioners from member and non-member institutions in order to discuss and document recent innovations in agrifinance. This will lead to creating a community of practice on agrifinance with an objective of promoting learning and sharing of good practice examples that help members improve their services to agri-SMEs. The deep-dive workshop sessions will cover different aspects.

In order to address problems of information asymmetry between a creditor and borrower, banks typically require collateral, which acts as an insurance if the borrowers defaults. Collateral reduces Losses Given Default (LGD) when loans default. Usually banks require fixed assets as collateral, often real estate. However, most Agri-SMEs do not have such collateral to present, and thus, Banks may be reluctant to lend. This may also be the case even if they are backed by movable collateral due to regulatory barriers and lack of moveable collateral registry. This third meeting of the CoP in Agriculture Finance will focus on key lessons and experiences in using commodities as a movable collateral, including crop receipts, when lending to Agri-SMEs.

2021 Speakers

SPEAKERS:

Leah Soroka
Program Manager

Ivan Yerko
Head of OTP Agro Factory

MODERATOR:

Toshiaki Ono
Senior Financial Sector Specialist