17.05.2004
Bank Millennium signed agreement with Agriculture Market Agency (ARR)
Bank Millennium made an agreement with the Agriculture Market Agency (Agencja Rynku Rolnego, ARR) in the matter of granting guarantees to secure payments made by the Agency under the Common Agriculture Policy. The signing of the agreement facilitates Bank Millennium to issue guarantees for the Agency, upon orders from Customers of the Bank - participants of the CAP mechanisms that require guarantee securities institution, e.g. in international trade of agriculture products.
Regulations regarding agriculture markets has been amended in effect of the adaptation of CAP resulting from Poland's accession to the European Union. The EU laws introduce a system of licenses, permits, and subventions to export and production of listed agriculture goods. Government institution responsible for administration and control of agriculture market is the Agriculture Market Agency (ARR). ARR issues production and trading permits for agriculture products and foods, as well as supervises appropriate performance of trade liabilities.
Pursuant to the new rules adopted on May 1, 2004, participation in many activities on agriculture markets, such as international trading of agriculture and food products, are subject to obtaining permits (issued by ARR). The necessary condition to secure a permit is for an entrepreneur to present an adequate collateral in form of cash security deposits or bank guarantees to secure performance of liabilities resulting from the issued import/export permit.
Pursuant to the Ordinance of the Finance Minister, guarantees within the above-presented collaterals may be issued exclusively by financial institutions that have signed adequate agreements with ARR.
Once the cooperation agreement has been signed between Bank Millennium and the Agency, Bank shall be able to issue bank guarantees for customers, towards liabilities resulting from participation in the Common Agriculture Policy. Therefore the Bank is now in a better position to effectively support customers whose business activities are related to agriculture products and foods trading, which are subject to CAP mechanisms.
Pursuant to the new rules adopted on May 1, 2004, participation in many activities on agriculture markets, such as international trading of agriculture and food products, are subject to obtaining permits (issued by ARR). The necessary condition to secure a permit is for an entrepreneur to present an adequate collateral in form of cash security deposits or bank guarantees to secure performance of liabilities resulting from the issued import/export permit.
Pursuant to the Ordinance of the Finance Minister, guarantees within the above-presented collaterals may be issued exclusively by financial institutions that have signed adequate agreements with ARR.
Once the cooperation agreement has been signed between Bank Millennium and the Agency, Bank shall be able to issue bank guarantees for customers, towards liabilities resulting from participation in the Common Agriculture Policy. Therefore the Bank is now in a better position to effectively support customers whose business activities are related to agriculture products and foods trading, which are subject to CAP mechanisms.