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Over
US $5 million in financing identified for Macedonian
agribusiness
 Given
the current scarcity of finance, more effort is
needed to identify and
understand currently available sources.
Due in part to the global financial
crisis,Macedonian banks have become more
restrictive in providing agribusiness
processors and marketers the financing they need
to purchase agricultural and other raw materials
they need to implement their businesses.
AgBiz is therefore working with our customers to
identify currently available, and often new and
different, sources of finance and affectively
secure funding from these sources. To date we
have been able to help more than 60 individuals
from 49 companies better understand alternative
sources of finance and their comparative
advantages and disadvantages, train 110
individuals in how
to access financing in the current environment,
and help customers successfully apply for
approximately MKD 235 million in financing.
The global financial slowdown has impacted
agribusiness access to finance
as well as receivables recovery. Our goal is to
work with our customers to offset these effects.
As an example, we performed a detail analysis of
the financial reports of an agribusiness
exporter, and then advised them to take out an
export insurance policy through the Macedonian
Export Promotion Bank. Subsequently, the maximum
value of the receivable from the German buyer
was determined by the Bank. The export insurance
policy resulted in more secure payment of the
export sale, properly managed risk and an
opportunity for larger export orders. The
policy, made out in favor of the bank, was then
used as collateral for a working capital loan
for the exporter. Therefore, our customer was
assured of both receivables recovery and had a
fresh working capital.
We have successfully helped AgBiz customers gain
access to viable and competitive sources of
finance, including but not limited to loans,
leasing, factoring and export insurance;
analyzed companies’ financial statements,
collateral issues, and financial projections;
and provided training to producers, processors
and SMEs on how to assess their capital needs.
As a result of this side-by-side support, three
AgBiz customers applied for Export Insurance
totaling $364,000, and developed new export
buyers in Russia, Ukraine and
Croatia. “Macedonian agribusiness managers need
to increase their understanding of and ability
to use financing and financial information to
manage their businesses, especially in these
difficult times when access to financing is a
critical success factor”; said Lovre Ristevski,
AgBiz Finance and Marketing Specialist.
One of AgBiz’s first actions toward our enhanced
access to finance objective was to author and
publish an Agribusiness Finance Manual and
distribute it to over 120 customers. Technical
presentations were conducted for more than 100
individuals, introducing them to the relevant
sources of financing and
government programs described in the Manual. We
expect to update the Manual in the near future.
We are currently helping our customers prepare
to access IPARD funds. AgBiz will continue to
support our customers to understand and
successfully apply for the various types of
financing, and stay up to date on available
sources of financing and new financial products.
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