In this Issue
From the Editors,
The July newsletter focuses on risk management and a newly published paper by FAO in cooperation with the European Bank for Reconstruction and Development (EBRD) titled "Innovative agricultural finance and risk management". The publication looks into the issue of risk management in agricultural finance in transition countries and it focuses on one particularly important action area: how can various agricultural finance and risk management products, mechanisms and institutions that are relatively new to the transition region, enhance the region’s food production, processing and trading systems. These products, mechanisms and institutions include market-based price risk management, weather index insurance, structured finance, warehouse receipt (WHR) systems and commodity exchanges, among others. The paper aims to identify how international financial institutions can most effectively leverage their investments and technical assistance programmes to boost the adoption and scaling- up of such products, mechanisms and institutions.
Furthermore, we have posted in the RFLC the highlights of the recent seminar entitled "Cream of the crop: the use of Grain Warehouse Receipts (GWRs) in agricultural finance". The event took place at FAO headquarters on June, 20th 2012 and it was organized by FAO and the Investment Centre, with the support of the Legal office. The seminar explored value chain finance with a focus on GWRs, and ways to give farmers easier access to credit through the collateralization of their crop. The seminar sections included: Introducing GWRs as a product-based value chain finance initiative; Grain warehouse receipts: benefits and ingredients for success; and Adaptations for informal use of inventory credit and GWRs: the case of Niger. For more information on powerpoint presentations and videos click here.
We would like to conclude July newsletter with some up-coming events in Latin America. The Latin American and the Caribbean Forum for Rural Finance, or FOROLACFR, and its partners will be launching the third Central American Conference on Rural Finance in San Salvador, El Salvador, the 15-17 August 2012. The conference will bring together regional and world leaders to discuss how financial service providers and other stakeholder in agricultural value chains can join efforts to promote sustainable and inclusive rural development in the context of a changing climate. For more information, please click here.
Also, The Financial Systems for Sustainable Agriculture Programme (SEFAS), in coordination with HIVOS-Netherlands is offering a training course for financial service providers in Latin America that aims to improve their ability to service the agricultural sector. The course is entitled 'Finance for sustainable agriculture: alternatives, opportunities, and innovation'. It will take place during 3-5 September in Panamá city. For more information please click here.
With best wishes,
The RFLC editorial team
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