Financing of warehouse receipts – Legal review: Lithuania
This survey was commissioned by the European Bank for Reconstruction and Development (EBRD) and carried out by the Investment Centre Division of the Food and Agriculture Organization of the United Nations (FAO), under the co-operation agreement between the two institutions.
The programme had two main objectives :
- transfer the experience and knowledge of Central European countries in the area of grain warehouse receipts; and
- analyse the existing legislative framework in Lithuania with a view to identifying areas for improvement in order to utilise warehouse receipts in agricultural lending.
General recommendations for the implementation of the system of common-use warehouses and warehousing receipts in Lithuania, it is necessary to adhere to the following structural organization model:
- Creation of a proper legislative environment
- Co-ordination of interests among growers, agricultural processors and traders.
- Proper insurance of the financial institutions (commercial banks) providing short-term loans against bankruptcy of warehouses.
- The formation of a guarantee fund and insurance of common-use warehouses and goods in store.
- The establishment of a state supervisory and control system.