State Food and Grain Corporation works in usual mode, handles financial payments on time
PJSC State Food and Grain Corporation of Ukraine (SFGCU) continues to work in all areas of its economic activities and handles financial payments on time, the corporation reported on its website.
Earlier, some media outlets reported that the SFGCU was on the verge of a complete halt, as Ukreximbank had blocked its bank accounts at the request of the Chinese side in connection with its loan debts.
Acting Chairman of the SFGCU's Board Dmytro Havrysh, the company is now optimizing its business processes and introducing improved principles of financial policy.
In particular, in December, it launched a pilot project when all money transactions are handled only through state financial institutions three times a week. This allows the company to accumulate cash flows for the implementation of its core business activity and receive additional financial income.
In addition, the SFGCU said that in recent months the state corporation had significantly boosted purchases of winter wheat and barley crops of the year 2018 harvest.
"Due to the fact that Chinese partners in October allowed [the corporation] to launch forward purchases for the harvest of 2018, the corporation has already received 86 applications from small- and medium-sized agricultural producers, concluded 61 contracts for the supply of almost 70,000 tonnes of wheat and barley. The corporation accepts applications, concludes agreements and handles advance payments on time and in full," Havrysh said.
Also, the SFGCU continues purchases for shipments to the Chinese partner and maintains planned exports. In general, grain exports in the first half of the 2017/2018 marketing year is expected to exceed 800,000 tonnes.
The SFGCU in 2012 agreed with the China Eximbank on a $1.5 billion credit for the purchase of grain for export to China. CCEC is the executor of the 15-year export contract for the China Eximbank.
The expected total volume of grain exports pursuant to the contract, according to Ukraine's agriculture ministry, is 80 million tonnes (4 million tonnes for the first year, 4.5 million tonnes for the second year and thereafter a minimum of 5.17 million tonnes per year).
