ACTIVITY RESULTS OF LOAN PARTNERSHIPS AND AGRICULTURAL PRODUCERS

The article outlines the issues of financial support provided to agricultural producers through a lending system. The results of the activities of credit partnerships were analyzed using the example of Credit Partnership (СP) Tselinogradskoye Limited Liability Partnership (LLP) in Akmola region and the agricultural enterprise Aktyk Agrofirm JSC. CP Tselinogradskoye LLP provides soft loans and subsidies at interest rates that are much lower than market rates. The performance of the credit partnership, which is ensured by annual monitoring by the CP of the targeted use of bank loans and borrowings, the financial condition of the business entity, as well as their collateral. The relationship of the results of production and financial activities of agricultural business entity and credit unions, reasonable given the specific data of participants who received loans due to improved their operational and financial performance. It is noted that the effectiveness of the use of financial resources, regardless of their structuring and affiliation, is expressed through indicators of productive production activities of the enterprise. It is substantiated that, based on the principles of a systematic approach, the optimization of the structure of the formation of financial resources should be considered from the point of view of interdependence and interaction with production efficiency.

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СЕЛЬСКОЕ КРЕДИТОВАНИЕ

SWorldJournal ◽

10.30888/2663-5712.2021-09-02-016 ◽

2018 ◽

pp. 18-22

Author(s):

Э. Шалябин ◽

О. Драхан

Keyword(s):

Bank Loans ◽

Agricultural Producers ◽

Agricultural Enterprises ◽

Financial Condition ◽

Agrarian Policy

Regularities and tendencies of credit provision, estimation of influence of agrarian policy on a financial condition of the agricultural enterprises are investigated. Potential opportunities for agricultural producers to access bank loans are determined b

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Utilisation of subsidy in a program-directed support of agricultural loans

Agricultural Economics (Zemědělská ekonomika) ◽

10.17221/5028-agricecon ◽

2012 ◽

Vol 52 (No. 7) ◽

pp. 311-320 ◽

Cited By ~ 1

Author(s):

V. Bečvářová

Keyword(s):

Interest Rates ◽

Agricultural Sector ◽

Point Of View ◽

Allocation Of Resources ◽

Enterprise Development ◽

Agricultural Enterprises ◽

Agricultural Enterprise ◽

Decision Making System ◽

Main Instrument ◽

High Level

The paper is focused on the performance measurement of the Support and Guarantee Fund for Farmers and Forestry (SGFFF) as the main instrument of capital reinforcement of Czech agricultural enterprise development. Its principles as well as the function from the point of view of agricultural enterprises, restructuring and allocation of resources and the reason why the subsidies of the supported loans’ interest rates have been employed are cleared up there. The results are discussed upon an analysis of the Fund’s activity. According to them, it can be claimed that the Fund has became an important part of supports for the agricultural sector development in the last ten years. From the point of view of the criteria of supported loans allocation, it was ascertained that the level of support has not been derived from the different natural and soil qualities primarily. The economic results and a high level of the prosperity have been evaluated as the main criteria for the decision-making system regarding an effective restructuring of agriculture and improving its competitiveness.

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Deposit insurance and reinsurance

Annals of Finance ◽

10.1007/s10436-021-00387-3 ◽

2021 ◽

Author(s):

Volker Britz ◽

Hans Gersbach ◽

Hans Haller

Keyword(s):

Default Risk ◽

Deposit Insurance ◽

Financial Intermediation ◽

Optimal Allocation ◽

Limited Liability ◽

Bank Lending ◽

Point Of View ◽

Bank Loans ◽

The Government ◽

The Individual

AbstractWe study the consequences and optimal design of bank deposit insurance and reinsurance in a general equilibrium setting. The model involves two production sectors, financed by bonds and bank loans, respectively. Financial intermediation by banks is required in the model as we assume that one of the production sectors is risky and requires monitoring by banks. Households fund banks through deposits and equity. Deposits are explicitly insured and banks pay a premium per unit of deposits. Any remaining shortfall is implicitly guaranteed by the government. Two types of equilibria emerge: One type of equilibria supports the Pareto optimal allocation. In the other type, bank lending and the default risk are excessively large. The intuition is as follows: the combination of financial intermediation by banks, limited liability of bank shareholders, and deposit insurance makes deposits risk-free from the individual households’ perspective, although they involve risk from the societal point of view. This distorts investment choices and the resulting input allocation to production sectors. We show, however, that a judicious combination of deposit insurance and reinsurance eliminates all non-optimal equilibrium allocations. Our paper thus may provide a benchmark result for policy proposals advocating deposit insurance cum reinsurance.

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СЕЛЬСКОЕ КРЕДИТОВАНИЕ

SWorldJournal ◽

10.30888/2410-6615.2020-09-02-016 ◽

2018 ◽

pp. 18-22

Author(s):

Э. Шалябин ◽

О. Драхан

Keyword(s):

Bank Loans ◽

Agricultural Producers ◽

Agricultural Enterprises ◽

Financial Condition ◽

Agrarian Policy

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STUDY OF AGRICULTURAL PRODUCTION AND THE VOLUME OF ITS FINANCING

HERALD OF SCIENCE OF S. SEIFULLIN KAZAKH AGRO TECHNICAL UNIVERSITY ◽

10.51452/kazatu.2021.4(111).821 ◽

2021 ◽

pp. 194-201

Author(s):

Zhussupova A.K ◽

Utibayeva G.B ◽

Zhunusova R.M. ◽

Akhmetova D.T.

Keyword(s):

Agricultural Production ◽

Financial Regulation ◽

Agricultural Sector ◽

State Regulation ◽

Point Of View ◽

Government Support ◽

Financial Resources ◽

Agricultural Producers ◽

Agricultural Output ◽

Regulation Mechanisms

The effectiveness of the use of financial and credit resources is largely determined by the methods of their distribution in directions and methods of bringing them to the final recipient. The current level of development of financial and credit relations in agriculture indicates the relevance of the formation and development of an adequate system of state regulation and financial support for the agricultural sector of the economy.The system of state regulation and support of the agricultural sector of the economy is represented by a number of relevant mechanisms. This system is implemented in practice by mechanisms of price, tax, credit and financial regulation, mechanisms for regulating social development, direct budgetary support within the framework of special targeted programs.In the course of the research, the task was set to identify the relationship between the amount of financial resources received by agricultural producers in the form of government support and the amount of agricultural products they produce. To resolve this issue, we analyzed the volumes of gross agricultural production and the volume of financing of agricultural producers in the country as a whole and in the context of regions for the period from 2016 to 2020.The analysis showed that there are certain shortcomings in determining the amount of financing. So, for example, in a number of regions with the same volumes of gross agricultural output, the volumes of financing differ sharply with the same structure of resources used. And vise versa, in other regions, which are provided with an approximately equal amount of funding, the level of gross agricultural output differs sharply. From the point of view of ensuring a more rational and efficient distribution of state financial resources, first of all, they should be provided to those agricultural producers who achieve a stable annual growth of production indicators in crop and livestock raising.

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The Support and Guarantee Fund for Farmers and Forestry as an enhancement instrument of the agricultural subsidy effectiveness

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis ◽

10.11118/actaun200553060007 ◽

2005 ◽

Vol 53 (6) ◽

pp. 7-18 ◽

Cited By ~ 1

Author(s):

Věra Bečvářová

Keyword(s):

Decision Making ◽

Interest Rates ◽

Agricultural Sector ◽

Point Of View ◽

Financial Resources ◽

Agricultural Enterprises ◽

Decision Making System ◽

Main Instrument ◽

High Level ◽

Regional Allocation

The paper is focused on the performance measurement of the Support and Guarantee Fund for Farmers and Forestry (SGFFF) as a main instrument of a capital reinforcement of the Czech agricultural enterprises restructuring during the last ten years. New possibilities shaped up by the CAP exercise are evaluated as well. The principles of the SGFFF function from the point of view of agricultural restructu- ring and regional allocation of the financial resources as well as the reason why subsidy of the supported loans’ interest rates have been employed are cleared up there. Results are discussed upon an analysis of the Fund activity. According to results of the analysis, it can be claimed that the Fund has became an important part of supports for agricultural sector. From the point of view of criterions of regional allocation of financial resources there was found out the level of supports has not been derived from the different natural and soil quality. The economic results and a high level of the prospectus have been used as main criterions for the decision-making system. The activity of SGFFF continues within the State Aid in the framework of the CAP EU and so that the loans for farmers are still more available for restructuring of the Czech agriculture and improving of its competitiveness.

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MODERN PROBLEMS OF BANK LENDING OF ENTERPRISES OF THE AGRICULTURAL COMPLEX OF UKRAINE

Financial and credit activity problems of theory and practice ◽

10.18371/fcaptp.v4i39.238596 ◽

2021 ◽

Vol 4 (39) ◽

pp. 50-57

Author(s):

S. Arzhevitin ◽

B. Stetsenko ◽

I. Okhrymenko ◽

A. Bilochenko ◽

V. Biloshapka

Keyword(s):

Interest Rates ◽

Agricultural Sector ◽

Positive Impact ◽

Bank Lending ◽

Jel Classification ◽

Bank Loans ◽

Industrial Complex ◽

Agricultural Producers ◽

Analysis And Synthesis ◽

Credit Programs

Abstract. The purpose of the article is to identify the main factors that constrain lending to enterprises of the agro-industrial complex of Ukraine, to suggest ways to improve their lending system. A systematic approach was chosen as the methodological basis of the study, which provides for a comprehensive study of the bank lending system of the agro-industrial complex. Historical and structural-functional approaches were also used in its analysis. Methods of comparative analysis were used to consider some problems of bank lending to the agro-industrial complex. Of the general scientific methods in this study, methods of analysis and synthesis, induction and deduction were used. The article examines the dynamics and structure of loans to the agro-industrial complex in Ukraine for 2015-2020; the dynamics of interest rates on loans to the agro-industrial complex and the dynamics of agricultural production by UAH 1. credit provision of the agro-industrial complex in Ukraine for 2015-2020. During the analyzed period, these indicators increase or decrease proportionally, as evidenced by the importance of the efficiency of credit support of the agar sector. In 2020, the efficiency of credit provision of the agricultural sector amounted to UAH 11.64, which is UAH 0.4 more than in 2015. The analysis revealed that the agro-industrial complex today has a high need for financial resources. The characteristic of the main problems of the mechanism of crediting of an agro-industrial complex is given. The need to ensure the availability of bank loans has been identified. Stimulating investment lending to agricultural enterprises will have a positive impact on the development of the industry, as well as improve the existing economic situation of rural residents. High demand for credit resources from agricultural producers, the current state and dynamics of lending to the agro-industrial complex in Ukraine allow us to conclude that it is necessary to improve the mechanism of bank loans, develop effective credit products for the agro-industrial complex and strengthen state support for agricultural lending. Keywords: credit, banks, enterprises of the agro-industrial complex, credit programs for the agro-industrial complex. JEL classification G21, Q14 Formulas: 0; fig.:3; tabl.: 1; bibl.: 15.

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CHANGING THE LARGE BANK LOANS ROLE IN THE SMALL BUSINESS DEVELOPMENT

Development of Management and Entrepreneurship Methods on Transport (ONMU) ◽

10.31375/2226-1915-2021-1-87-96 ◽

2021 ◽

pp. 87-96

Author(s):

Maryna Matviienko ◽

Keyword(s):

Small Business ◽

Interest Rates ◽

Small Businesses ◽

Banking Sector ◽

Bank Loans ◽

Financial Resources ◽

Adjustment Process ◽

Capital Investments ◽

Dynamic Adjustment ◽

Venture Capital Investments

The article is aimed at analyzing the world and domestic practice of small business lending by large banks and focusing on changing their role as major financial resources suppliers. The article also examines the existing and new forming alternative forms of attracting resources, which, today, better meet the needs and opportunities of small business.An analysis of the statistics showed that lending to small businesses by the largest banks as in Ukraine as in other countries has decreased sharply compared to indicators since 2008 and remains relatively depressed to this day. So the ability to get loans for enterprises has become essentially shorter. The development of almost any business is impossible without external funding. The growing due to own funds will take many years. This condition made small business interested in finding new financing sources. The article examines the dynamic adjustment process aftershock for the loan offer. In Ukraine like in some other countries where the largest banks had high market shares, aggregate credit flows for small businesses became extremely shorter, interest rates staid high or even rise, fewer businesses rose, unemployment rose, and wages fell. The loans flow resumed after 2010, but other lenders intensified, slowly filling the void, but interest rates remained high. The financial resources market is wide enough, and there are both local and external players. And for solving different problems, different tools can be chosen. Venture capital investments are used, for example, for a good start or a powerful breakthrough; long-term loan money or investor’s entry into capital can be used for progressive growth or entry into new markets. A variety of leasing products allow financing not only the purchase the source of transport or equipment, but also rent or buying out warehouse space or offices. There are even so interesting tools such as ICO. It should be concluded that the influence of these factors, as well as the development of block chain technologies and the emergence of alternative (public) forms of financing and development of social enterprise are gradually leading to the loss of key positions of the banking sector in financing small business projects. All these processes have shown that the financial sources accumulation even for big project can be organized in the way of multiplied microcredit system trough attraction stakeholders. Such examp-les we can mark in various business sectors, for example, in transport –collective financing of the ship construction. Keywords: Small Business, Financing, Loans, Banks, Banking._______________________©Matviienko M.,2021

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Development of the bank lending system of agricultural business

Collected Works of Uman National University of Horticulture ◽

10.31395/2415-8240-2021-99-2-7-17 ◽

2021 ◽

Vol 2 (99) ◽

pp. 7-17

Author(s):

O.O. Nepochatenko ◽

◽

P.K. Bechko ◽

S. O. Ptashnyk ◽

V. I. Nagorny

Keyword(s):

National Economy ◽

Production Efficiency ◽

Agricultural Sector ◽

Bank Lending ◽

Legal Framework ◽

Bank Loans ◽

Theory And Practice ◽

Credit System ◽

Agricultural Producers ◽

Increase Production Efficiency

A factor in ensuring reproduction in agriculture is the development of a bank lending system. Currently, the need for credit resources in agriculture requires further development of a specialized system that would meet the requirements and conditions of a modern market economy. Issues of formation and development of the credit system in agriculture are considered both by domestic economic theory and practice and by countries with developed market relations, which are based on the development of the infrastructure of modern credit relations, forms and methods of lending. The sphere of agricultural lending is in the process of formation due to imperfect legislative provision, underdevelopment of the credit products market, and the absence of the vast majority of market infrastructure entities. Solving these problems will help expand the availability of agricultural producers to credit resources, as well as ensure the stabilization and development of the industry. Agricultural production is a strategically important sector of the national economy, the development of which depends on the level of food and national security of the country. The development of the modern agricultural sector as the most important component of the national economy largely depends on external sources of financing, the main of which is bank lending. State support for lending to farmers is an objective necessity. At the same time, limited access of farmers to credit resources of banks makes it impossible to increase production efficiency. Increasing the availability of farmers to credit resources is one of the priority areas for ensuring the dynamic development of agriculture, their functioning on self-financing and self-sufficiency. A well-established lending system plays an important role in lending to agricultural producers. Studies on the development of the bank lending system for agricultural producers indicate the lack of a developed legal framework for providing farmers with bank loans for both operating and investment activities. Preferential lending regime introduced in the practice of lending to farmers in modern conditions does not work due to lack of budget funds.

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The economic essence of credit and its role in the development of bank lending to agricultural business

Collected Works of Uman National University of Horticulture ◽

10.31395/2415-8240-2021-98-2-41-50 ◽

2021 ◽

Vol 2 (98) ◽

pp. 41-50

Author(s):

P. K. Bechko ◽

◽

S. A. Vlasyuk ◽

O. V. Ponomarenko ◽

V. I. Nahornyi

Keyword(s):

Agricultural Production ◽

State Level ◽

Bank Lending ◽

Positive Influence ◽

Bank Loans ◽

Economic Situation ◽

Financial Condition ◽

Flow Of Funds ◽

Agricultural Business ◽

Business Entities

The constant cycle of agricultural production is successfully achieved regarding to equity and loans. An alternative to private source of funding to the equity of agricultural production is crediting including bank loans which are attracted in order to cover the time gaps between production and receiving benefits during a year due to the seasonality. It is revealed that crediting in the context of modern market economy is a key and vital component of economic development. The positive influence of the loan, its impact on national business entities is assessed as controversial. Some researchers of credit theory and its involvement in the production process substantiate it by the lack of tangible assets necessary to ensure the business continuity. As the interest rate is the basic principle of lending, in their opinion, the financial condition of the borrower becomes unstable and as a result it leads to the bankruptcy. According to other researchers, credits lead to the reduction of manufacturing duration and serve as the main precondition for expanded reproduction and business operation in modern economic situation. It has been found that a loan is an inevitable part of an agricultural business as its involvement is caused not only by the borrower’s financial weakness but also the objectiveness of production and circular flow of funds due to the lack of its own funds which is inappropriate to hold in reserve. It was also determined that the naturalistic and income generating theories developed equally during a long period of evolution. However, having opposite approaches to the essence of crediting, in fact, they are identical as credit systems channel savings into productive investments. Actually, credit itself performs redistributive function in the economy and, at the same time, bank institutions have the function of capital formation. It is proposed that in current economic situation the establishment of credit relations between banks and borrowers is possible only in the context of theoretical justification of the nature of the loan, its role in the reproduction process and implementation at the state level with the aim of reliability lending to agribusiness with scientifically proved supervision in market functioning by a decision-making methods through the implementation of legislative framework in the field of crediting, insurance, taxation, budget policy, aimed at the improving of credit relations, supporting bank institutions and the agrarian sector and as a result it will contribute to overcome the financial crises.

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