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29 May 2019, 15:07

Business

Society

LPR to forward purchase crops with 50 pc advance payment

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LUGANSK, May 29 (Lugansk Media Centre) – LPR government has announced plans to forward purchase crops from LPR farmers, the Minsiter of Agriculture and Food Yuriy Pronko said.

A forward contract is a contract to buy or to sell an asset at a specified future time at a price agreed upon today. The LPR decided to implement forward purchase to support farmers with float fund at a financially challenging period of crops planting.

"This is the first time the government forward purchases crops. The government makes a 50 percent prepayment without interest and farmers deliver on contracts by October 1; so that they receive funds today to purchase equipment, pay salaries, etc."

 The government is represented by state enterprise Agrarnyi Fond.

The companies willing to sign forward contracts are required to have no outstanding debts, including rent and salaries.

"Forward purchases were implemented only once in the history of Ukraine, but to get a contract one had to pay, it was a corrupt system," Pronko said.

LuganskMediaCentre — 29 May — Lugansk