Ukraine is preparing for the introduction of agricultural notes

The National Securities and Stock Market Commission of Ukraine developed the necessary regulatory framework for the launch of a new instrument for attracting investments in agriculture. From the beginning of next year, it will be agrarian notes.

It should be noted that from January 1, 2025, the Law of Ukraine "On Agrarian Notes" will enter into force, which provides for the creation of a separate Register of Agrarian Notes. The commission has already developed and approved the relevant normative act regulating the operation of this register. It will display information on the issuance, content and change of details of agrarian notes; termination and encumbrance, as well as the beginning of forced fulfillment of obligations under agrarian notes on the basis of a special extract from the Register. In addition, the regulator made changes to the Regulation on the conduct of depository activities, which determine the peculiarities of accounting for agrarian notes in the Central Depository system, depositing non-issued securities, etc. Additional legal acts were also adopted to regulate relations arising during the circulation of agrarian notes.

We will remind you that at the beginning of this year, the Verkhovna Rada adopted the draft law "On Agrarian Notes". In the first reading, the draft law was entitled "The Draft Law on Electronic Agrarian Receipts". It is aimed at expanding the mechanisms of attracting financing to agricultural production by introducing a new financial instrument for crediting agricultural production - agricultural notes in the form of a non-emission security. This norm should make a loan popular among farmers attractive to banks.

In addition, agricultural notes will have a significantly simplified procedure for issuing, circulating and terminating them. A special register and electronic cabinet will be created for operations with agrarian notes. It will be possible to get access to it with the help of an electronic signature, which will not require an application to a notary, which means spending time and money. It is also worth noting the expansion, in comparison with traditional paper agricultural receipts, of pledge options, including the possibility of pledging live animals and products of animal origin, products of their primary processing, which creates conditions for attracting resources to livestock farms.