pay up front

[davidm479]

Ukraine Gets $1.5 Billion From China for Grain Purchases

By Kateryna Choursina - Feb 6, 2013 6:24 AM CT.
.why do they payed up fron and we don"t that would sure stop all the chanclations-----------------------------------dave



Ukraine received $1.5 billion from the Export-Import Bank of China under a credit agreement to finance grain purchases, the Eastern European country’s Agriculture Minister Mykola Prysyazhnyuk said.

The money will be used by Ukraine’s state-managed Food and Grain Corp. to forward-buy 2 million metric tons of barley, wheat and corn from local producers, Prysyazhnyuk told reporters today in the capital, Kiev. Another 2 million tons of grains will be bought on spot markets, he said.

All grain will then be exported to China, the minister said, without giving a timeframe.

[bentoncofarmer]

they already own us, maybe there are a lot of credit issues in the ukraine that if they don't get the money in advance the farmers there can't plant a crop?

[82]

I read somewhere not long ago that China was going to help Ukraine improve or in most cases build infrastructure for shipping grain. Maybe it has something to do with that deal?

[Joe Farmer]

i think it has to do with the fact they are buying from a country where the grain is state-owned. The country of Ukraine owns the grain, and wants payment up front before shipping. Here, private companies selling our grain don't make those demands....or they may risk losing business to another private company. however, i DKJ.

[drdiederich]

Does the government own the grain? They don't do collective farming anymore, so I was under the impression that the government wouldn't own the grain... I suppose the government could've bought the grain from the farm to sell it for them

[linsal]

Was the money that the Ukraine received in dollars? Or the yuan? If it was the yuan, then we may have a reserve currency issue developing...

[Pick-Six]

I heard at a large marketing meeting a few weeks ago that when China backs out of a US grain contract they actually forfeit their deposit. I wonder how big the deposit is?