Uman NUH | today: 10/15/2024
| Author(s) | Melnyk К. М., , , | ||
|---|---|---|---|
| Category | Economics | ||
| year | 2016 | issue | 89. Pat 2 |
| pages | 127-138 | index UDK | 354:338 | DOI |
| Abstract | Implementation of modern issues of socio-economic development in Ukraine under the conditions of strengthening financial constraints recognizes the need to increase the role of investment lending of commercial banks in financing the agricultural sector. The aim of the article is to study issues of the long-term credit mechanism in the agricultural sector and definition of priority directions and prospects of their solution. In the study the following research methods as abstract and logical, empirical, time series were used, as well as a systematic approach to problem solving. Data of statistical observations on investment in 2010-2014 indicated an unstable situation in agriculture. In 2010-2012 there was a tendency to the increase in capital investment in the economy of Ukraine, as well as in agriculture but in 2013 the situation deteriorated and there was a downward trend. The dynamics of bank lending to the agricultural sector of Ukraine in 2010-2014 showed that lending rates in the economy and in agriculture tended to increase, both in absolute and in relative terms. Moreover, the banks stepped up lending operations, even when there was no growth in GDP. However, despite the absolute growth in lending from 27.9 billion USD to 59.6 billion USD (almost 2 times), in the structure of credit investments no significant changes occurred. The bulk of loans is short-term in nature and aimed advantageously to finance working capital of agricultural enterprises. To ensure the economic revival of the agricultural sector of the national economy is impossible without advanced technical and technological base and sufficient investment income for its renewal. Compelling reasons of relatively small volumes of investments into enterprises of the agrarian sector is the lack of a favorable environment and sound concept of economic development of the region. The solution to these problems is to be undertaken by the government. The state policy in the agrarian sector should be based on new approaches to making decisions about the optimal conditions for a substantial increase in social, investment and production potential. To achieve this goal the government can use a number of methods of economic, organizational and legal measures which would be realized as a part of its overall economic reform. | ||
| Key words | agrarian sector, investment credits, bank crediting, credit risks, agrarian projects. | ||