Uman National University | today: 12/28/2025
| Author(s) |
Bechko P.K., Candidate of Economics, , Uman National University of Horticulture, Ukraine Колотуха С. М., , , Nepochatenko E.A., Candidate of Economics Sciences, , Uman National University of Horticulture, Ukraine Lysa N.V., Candidate of Economics Sciences, , Uman National University of Horticulture, Ukraine |
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| Category | Economics | ||
| year | 2025 | issue | Issue 107 part 2 |
| pages | 306-318 | index UDK | 338.43:336.77(477) | DOI | 10.32782/2415-8240-2025-107-2-306-318 (Link) |
| Abstract | The aim of the article is to develop ways to improve the lending of agricultural business entities based on current trends in agricultural production and contemporary challenges affecting the development of preferential lending, and on this basis, to determine the main directions for its further development under conditions of economic instability and global changes. The results of the conducted research indicate that domestic agricultural lending practices, despite identified shortcomings, possess positive experience associated with the implementation of the "Affordable Loans 5-7-9%" program. Lending banks, in the context of preferential lending in general and the "Affordable Loans 5-7-9%" program in particular, are key participants that provide funds to borrowers and assess their solvency and creditworthiness to ensure loan repayment. The state, within the "Affordable Loans 5-7-9%" program, acts as an initiator, guarantor, and regulator, simultaneously reducing the cost of loans for agricultural producers by providing compensations or state guarantees. The key role of the state lies in creating a mechanism for accessible financing capable of supporting the development of the agricultural sector, particularly under economic challenges, as well as in stimulating small and medium-sized enterprises. Its application makes it possible to establish an optimal balance of interests and functions in the lending market among its three parties—state, bank, and producer—since it is based on the fundamental principles of agricultural lending, which include systematization, control, delineation, and targeted allocation. A significant advantage of this program is the presence of a specialized credit environment for both large and medium-sized business entities, as well as for representatives of small and microbusiness. This is due to specific economic conditions of operation, including the volume of collateral, financial insurance capabilities, and resilience to global changes. In this regard, the "Affordable Loans 5-7-9%" credit program, especially under conditions of military actions, is one of the most effective factors in the development of the domestic agricultural sector. | ||
| Key words | agribusiness entities; lending models; subsidization; fund-based lending; interest rate; systemic approach; creditworthiness | ||