Uman NUH | today: 07/19/2024

Trends in the development of credit relations in the agricultural sector of the economy

Author(s) Kolotukha S.M., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Мельник К. М., , ,
Переполка В. Ю., , ,
Category Economics
year 2023 issue Issue number 102. Part 2
pages 222-234 index UDK 338.433
DOI 10.32782/2415-8240-2023-102-2-222-234 (Link)
Abstract The key to the successful development of the agricultural sector of the economy is bank lending, which plays an important role in the development of the agricultural sector, as evidenced by the positive trend in the growth of lending by commercial banks in the country. In this regard, the attraction and utilization of borrowed financial resources is the most important aspect of the financial activities of the agricultural sector of the economy, which aims at achieving high final economic outcomes. The paper presents the fact that agricultural producers are currently facing a serious shortage of working capital and investment resources. Therefore, state support is necessary to ensure sustainable development of the agricultural sector, as can be confirmed by the experience of various countries. In Ukraine, direct state financial support for agricultural enterprises is provided through programs such as reducing the cost of loans and supplementing lease payments. To support the agricultural sector, it has been confirmed that in 2023 the government continued to implement the Affordable Loans 5-7-9 % national program to make it easier for farmers to obtain loans and state guarantees under martial law. It indicates that in order to establish a nationwide system of agricultural financing, it is necessary to create a specialized financial institution, or "national land bank," with the functions of efficient management of state-owned land, financial and credit activities, and support for small and medium-sized farmers. This paper demonstrates the expediency and necessity of developing an insurance services market in the organization of bank lending. As a result of joint activities between banks and insurance companies, customers will have access to the most convenient, complete, and relatively inexpensive set of services.
Key words bank lending, agricultural enterprises, financial support, state financial support, Land (mortgage) bank
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