scholarly journals SHORT-TERM CREDITING EFFICIENCY OF AGRICULTURAL PRODUCTS MANUFACTURERS

2021 ◽  
Vol 3 (38) ◽  
pp. 304-314
Author(s):  
O. Oliynyk ◽  
V. Makogon ◽  
O. Skoromna ◽  
V. Mischenko ◽  
S. Brik
Keyword(s):  
Interest Rates ◽  
Optimal Level ◽  
Operating Costs ◽  
Leverage Effect ◽  
Financial Leverage ◽  
Short Term ◽  
Agricultural Producers ◽  
Agricultural Enterprises ◽  
Diminishing Returns ◽  
The Law

Abstract. Cash gaps in the financing of the agricultural enterprises determine the attraction of the borrowed funds, which contributes to the growth of the production, allows restructuring the technological base on an innovative basis and is the key to the growing dynamics of their own. Due to this, the management of the attraction and the efficient use of the borrowed funds is one of the most important functions of the agricultural formations management. At the same time, the subordination of the agricultural production to the law of diminishing returns causes dysfunctions in the formation of the financial leverage effect, which reduces the efficiency of the use of the credit resources to finance the production costs of the agricultural producers. In particular, the assessment of the effectiveness of the borrowed capital by the agricultural enterprises from the standpoint of the classical approach in calculating the financial leverage effect showed that the latter ignores the law of diminishing returns, which leads to the erroneous conclusions as to the feasibility of using short-term loans to finance the operating costs. Taken together, this necessitates the substantiation of new scientific and methodological approaches to the organization of effective short-term crediting to the agricultural producers. The results of the research show that the declining payback of increasing the intensity of the agricultural production significantly affects the effectiveness of the credit resources to finance the operating costs. The methodological tools tested during the research allowed to establish a decrease in the optimal level of the production intensity under the conditions of credit coverage of part of the costs compared to their self-financing. Besides it has been determined that under the conditions of combining own and borrowed funds, the optimal level of production intensity does not depend on the structure of the working capital by the financing sources. Along with this, there are well-founded approaches that allow calculating the level of the credit coverage of the costs, at which, without reducing the expected profit in terms of self-financing, much larger volumes of the marketable products become achievable. In addition, it is established that the reduction of the optimal level of the production intensity under the use of the credit resources is proportional to the level of the interest rates. It is all the more significant the higher are the interest rates. Keywords: credit, loan interest, financial leverage effect, attracted capital, the law of diminishing returns, own working capital, expenses, profitability. JEL Classification C67, E47, Q14 Formulas: 10; fig.: 2; tabl.: 1; bibl.: 14.

State support of activities of entrepreneurial structures of the agricultural sector of Ukraine

2021 ◽  
Vol 2 (99) ◽  
pp. 232-239
Author(s):  
Iu. O. Nesterchuk ◽  
◽  
N. O. Blenda ◽  
I. I. Cherneha
Keyword(s):  
Interest Rates ◽  
Agricultural Sector ◽  
Public Investment ◽  
Public Expenditures ◽  
Agricultural Machinery ◽  
State Support ◽  
Agricultural Producers ◽  
Agricultural Enterprises ◽  
Business Structures ◽  
Partial Compensation

In the article it is shown the results of summarizing of the features, methods, and tools of state support for business structures of the agricultural sector in Ukraine. It is established that the main form of state support is preferential tax treatment and implementation of state targeted programs, covering budget financing of programs and activities aimed at the development of certain industries, partial compensation of interest rates on commercial banks, partial compensation of purchased agricultural machinery. As a result of the analysis of public expenditures in support of the agricultural sector of Ukraine, it was found that the actual amount of funding does not meet the legal norm in the amount of 1 % of GDP. It should be noted a significant overall reduction in public spending to support the agricultural sector of Ukraine in 2020 year compared to the previous 2018–2019 years. At the same time, there is a reorientation of state support: expenditures on livestock and processing of this industry are significantly reduced, while expenditures on cheaper loans and partial compensation for the cost of purchased agricultural machinery are increasing. Given the problems of the agricultural sector, the main areas of the state support and stimulation of agricultural entrepreneurship should be: creating an effective mechanism for the financial support of agricultural enterprises in the context of budget grants and public investment; development of the programs to ensure the renewal of fixed assets and logistical re-equipment of agricultural enterprises through the introduction of innovations; protection of the domestic agricultural producers through a balanced export-import policy.

scholarly journals Development of alternative forms and types of agricultural lending in Ukraine

2020 ◽  
Vol 11 (4) ◽  
Author(s):  
L. Hudoliy ◽  
Keyword(s):  
Interest Rates ◽  
Agricultural Production ◽  
Bank Lending ◽  
Financial Statements ◽  
Short Term ◽  
Agricultural Enterprises ◽  
Credit History ◽  
Bill Of Exchange ◽  
Main Barrier ◽  
Further Development

This article deals with the problem of insufficient provision of credit resources to agricultural enterprises in Ukraine, which hinders the further development of production in the industry and increases its share in the country's GDP. Bank lending of agricultural production remains limited due to the fact that banks still consider agricultural enterprises to be objects of high risk and low creditworthiness, and in the segment of agricultural lending, they prefer large enterprises that audit their financial statements and insure crops. A noticeable demand for loans from farmers is constrained by high interest rates, the prevailing short-term nature of loan agreements, the requirements for high advance payments, floating charge or guarantees. The point of the article is to show the possibilities of expanding lending of agricultural enterprises both through bank lending and alternative forms and types of agricultural lending, such as leasing, promissory note lending or a combination of various forms and instruments. These forms are more "tolerant" to farmers than bank lending. Comparative calculations made on the materials of a number of Ukrainian banks confirmed that lease payments are lower than on the loan, and on the avalized bill of exchange are lower than on leasing. In addition, these forms allow you to avoid high advance payments, strict requirements for property collateral, for a positive credit history, and guarantees, which are the main barrier to obtaining loans by farmers. The use of these forms and types of lending will expand the ability of farmers to obtain credit resources of their need and optimize the price of credit resources and business taxation.

scholarly journals Bank lending to the agricultural sector of the economy as one of the factors of economic sustainability

2021 ◽  
pp. 25-30
Author(s):  
Serhii KOLOTUKHA ◽  
Nataliia HVOZDIEI ◽  
Oksana VINNYTSKA
Keyword(s):  
Interest Rates ◽  
Agricultural Sector ◽  
Bank Lending ◽  
Economic Activities ◽  
Agricultural Producers ◽  
Agricultural Enterprises ◽  
Credit Mechanism ◽  
Fixed Assets ◽  
Economic Nature ◽  
Further Development

Introduction. Domestic practice and foreign experience indicate that the finances of agricultural enterprises differ in certain specificities and require constant attraction of borrowed capital. The use of borrowed capital makes it possible to significantly expand the volume of economic activities of an enterprise, to ensure a more efficient use of its own funds, and to accelerate the renewal of fixed assets. In this regard, the attraction and use of borrowed financial resources is the most important aspect of the financial activities of the enterprise, aimed at achieving high final results of management. The purpose of the paper is to study the features and state of bank lending to the agricultural sector of the Ukrainian economy and the prospects for its further development. Results. The situation on the market of bank lending to agricultural enterprises is analyzed. The main factors of demand for credit resources on the part of agricultural enterprises are revealed. The volume of the credit services market formed by banks and non-bank financial institutions has been analyzed. It was found that bank lending tends to decline, which determines the development of non-bank forms of lending. The ratio of the levels of profitability and average annual interest rates on loans received by agricultural enterprises is considered and it is proved that efficiency indicators are not related to the level of interest rates on loans and this does not stimulate agricultural producers to increase their profitability. Conclusion. In the system of state support for the economy of agricultural producers, it is necessary to form a credit mechanism adequate to the current conditions, in which it is advisable to coordinate all levels of support with various instruments of a legal and economic nature.

Perspectives on inflation Targeting Regime in Russia

2014 ◽  
pp. 107-121 ◽  
Author(s):  
S. Andryushin
Keyword(s):  
Monetary Policy ◽  
Financial Markets ◽  
Interest Rates ◽  
Inflation Targeting ◽  
Short Term ◽  
Indirect Control ◽  
Financial Account ◽  
Domestic Prices ◽  
Macroeconomic Indicators ◽  
Private And Public

The paper analyzes monetary policy of the Bank of Russia from 2008 to 2014. It presents the dynamics of macroeconomic indicators testifying to inability of the Bank of Russia to transit to inflation targeting regime. It is shown that the presence of short-term interest rates in the top borders of the percentage corridor does not allow to consider the key rate as a basic tool of monetary policy. The article justifies that stability of domestic prices is impossible with-out exchange rate stability. It is proved that to decrease excessive volatility on national consumer and financial markets it is reasonable to apply a policy of managing financial account, actively using for this purpose direct and indirect control tools for the cross-border flows of the private and public capital.

ANALYSIS OF THE STATE AND DEVELOPMENT OF THE MAIN INDICATORS OF THE AGRICULTURAL SECTOR OF THE ECONOMY OF THE TOKTOGUL REGION OF KYRGYZSTAN

2020 ◽  
Vol 2 (11) ◽  
pp. 71-73
Author(s):  
M. U. USUPOV ◽  
Keyword(s):  
Financial Institutions ◽  
Agricultural Sector ◽  
The State ◽  
Market Demand ◽  
Agricultural Producers ◽  
Money Markets ◽  
Agricultural Enterprises ◽  
State Of The Economy ◽  
The Subject ◽  
Production Losses

The article is devoted to the state of the economy of the subject of the agricultural sector – the Toktogul region of Kyrgyzstan, as well as the formation of a land division, which is impossible without an influx of investments and ensuring the availability of monetary resources for agricultural producers. In our time, innovation is becoming the main means of increasing the benefits of economic entities by better meeting market demand and reducing production losses compared to competitors. Despite repeated attempts by the country to create a system of lending to agricultural companies, only a small percentage of them use credit resources. Various state aid schemes support a competitive environment in the money markets and guarantee relatively equal access to them for financial institutions and agricultural enterprises.

Protecting the Desperate: The Regulation of Payday Lending

2015 ◽  
Vol 43 (1) ◽  
pp. 147-176
Author(s):  
Andrew J Serpell
Keyword(s):  
Consumer Credit ◽  
Law Reform ◽  
Payday Lending ◽  
Short Term ◽  
Payday Loans ◽  
The Law ◽  
The Right ◽  
Credit Contracts ◽  
The Cost

Payday loans are small-amount, short-term, unsecured, high-cost credit contracts provided by non-mainstream credit providers. Payday loans are usually taken out to help the consumer pay for essential items, such as food, rent, electricity, petrol, broken-down appliances or car registration or repairs. These consumers take out payday loans because they cannot — or believe that they cannot — obtain a loan from a mainstream credit provider such as a bank. In recent years there has been a protracted debate in Australia — and in several overseas jurisdictions — about how to regulate the industry. Recent amendments to the National Consumer Credit Protection Act 2009 (Cth) — referred to in this article as the 2013 reforms — are designed to better protect payday loan consumers. While the 2013 reforms provide substantially improved protection for payday loan consumers, further changes to the law may be warranted. This article raises several law reform issues which should be considered as part of the 2015 review into small amount credit contracts, including whether the caps on the cost of credit are set at the right level, whether the required content and presentation of the consumer warnings needs to be altered, whether more needs to be done to protect consumers who are particularly disadvantaged or vulnerable and whether a general anti-avoidance provision should be included in the credit legislation.

Overburdened Gauls: the case of Florus and Sacrovir’s revolt of 21 CE

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Jared Kreiner
Keyword(s):  
Interest Rates ◽  
Large Scale ◽  
Cumulative Effect ◽  
Short Term ◽  
Local Economies ◽  
Scale Resistance ◽  
Military Campaigns ◽  
The Impact

Abstract In 21 CE, a series of localized movements broke out in Gallia Comata due to heavy debts among provincials according to Tacitus. Modern scholars have long argued that the indebtedness occurred because of rising interest rates, resulting from dwindling currency in circulation after decades of free-spending following Augustus’ victory at Actium, and that Gallic communities were subjected to an additional tribute to support the wars of Germanicus (14–16 CE), which continued unabated after the wars and pushed Gauls beyond their means. These claims are misguided, however, in that there is no certain evidence of a special tax to support Germanicus’ wars and that the argument for a dwindling circulation of currency in Gaul falters under closer inspection. Rather, the pressing statal and military needs imposed on communities in Gallia Comata after 9 CE on top of routine exactions could significantly increase burden levels levied on provincial populations, thus contributing to rising debts. Through examining how Roman logistics and conscription operated in this period, it is possible to trace how populations were impacted by such demands and which communities were most heavily affected by them, too. Individually, the impact of each factor is unlikely to have been burdensome enough to have caused large-scale resistance, it is only the cumulative effect that these explanations had on top of routine Roman extraction schemes that could create the conditions for this revolt. This paper argues that in extraordinary circumstances, such as the period after the Varian Disaster for Gallia Comata, the costs of supporting military campaigns places real short-term strains on local economies, which creates the conditions for revolt. The benefit of this approach is that it may explain other episodes of anti-fiscal resistance that broke out during or within a decade of wars in neighboring regions.

scholarly journals CANDIDE et la monnaie

2009 ◽  
Vol 52 (1) ◽  
pp. 75-103
Author(s):  
Jean-Pierre Aubry ◽  
Pierre Duguay
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Term Structure ◽  
Structural Equations ◽  
Reduced Form ◽  
Real Sector ◽  
Short Term ◽  
The Real ◽  
Structure Equations

Abstract In this paper we deal with the financial sector of CANDIDE 1.1. We are concerned with the determination of the short-term interest rate, the term structure equations, and the channels through which monetary policy influences the real sector. The short-term rate is determined by a straightforward application of Keynesian liquidity preference theory. A serious problem arises from the directly estimated reduced form equation, which implies that the demand for high powered money, but not the demand for actual deposits, is a stable function of income and interest rates. The structural equations imply the opposite. In the term structure equations, allowance is made for the smaller variance of the long-term rates, but insufficient explanation is given for their sharper upward trend. This leads to an overstatement of the significance of the U.S. long-term rate that must perform the explanatory role. Moreover a strong structural hierarchy, by which the long Canada rate wags the industrial rate, is imposed without prior testing. In CANDIDE two channels of monetary influence are recognized: the costs of capital and the availability of credit. They affect the business fixed investment and housing sectors. The potential of the personal consumption sector is not recognized, the wealth and real balance effects are bypassed, the credit availability proxy is incorrect, the interest rate used in the real sector is nominal rather than real, and the specification of the housing sector is dubious.

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