Potentials and Constraints of Using Warehouse Receipts Financing
The paper starts with an overview of Cambodia’s rice sector, with a particular attention to aspects which affect its need for external working capital finance, and characteristics and constraints that could hinder access to such finance (e.g., ware...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/08/24915519/cambodia-finance-small-medium-sized-agribusinesses-potentials-constraints-using-ware-house-receipts-financing http://hdl.handle.net/10986/22510 |
| Summary: | The paper starts with an overview of
Cambodia’s rice sector, with a particular attention to
aspects which affect its need for external working capital
finance, and characteristics and constraints that could
hinder access to such finance (e.g., warehousing capacity,
processing constraints, logistics, and market risks).
Chapter two describes the general conditions for crop-based
financing in Cambodia’s rice sector. Chapter three discusses
policy options for enhancing the use of paddy and rice as
collateral for financing. The chapter sets out the two main
modalities: collateral management, and public warehousing.
Both collateral management and public warehousing work best
when certain support structures are in place, in particular
an indemnity system, a system for the electronic trading of
warehouse receipts, and a facility for refinancing warehouse
receipt loans (which could be managed by the Central Bank or
outsourced to another competent entity such as an investment
fund). These are discussed in separate sections. The various
sections describe the situation as currently prevails in
Cambodia, and provide suggestions on how to move forward,
including in terms of possible government supports. Case
studies on international experience are used to illustrate
options and pitfalls. A final section concludes, with a
focus on policy options for the Government of Cambodia and
aid donors, the detailed terms of reference for a possible
pilot project can be found in annex three. |
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