The role of credit resources in financial support of agricultural manufacturers in modern economic conditions

Issue: № 12/2, 2021

Doi: https://doi.org/10.37634/efp.2021.12(2).3

The paper examines the relevance of lending to the agricultural sector as an external source of financing for agricultural producers. Using the analysis of commercial banks, the role of bank lending as an important source of financial support for the functioning of agricultural enterprises is revealed. The analysis of the loan portfolio of agricultural enterprises is carried out with the definition of the dominant feature – the Program of reduction of credit resources due to the introduction of new credit programs. It is outlined that the access of agricultural enterprises to credit resources gives them the opportunity to master the innovative technologies needed to ensure the appropriate level of their competitiveness. The actual offers of credit products for financing the development of agriculture in Ukraine through the tools of preferential lending, specialized banking programs are described. Emphasis is placed on the problems that hinder the development of the agricultural sector, the state of lending to agricultural producers, the regulation of lending to agricultural enterprises. The current state of loans by banking institutions to the agro-industrial complex, stimulation of its development by the state are analyzed and researched, special emphasis is placed on modern programs of credit products, their positioning in line with traditional forms of credit. It is substantiated and proved that credit support for the functioning of agricultural producers in the modern economic environment is aimed at developing a system of interaction with the agricultural sector of the economy, which is an important factor in economic growth, improving the economic situation in a competitive environment. Suggestions and recommendations for more effective financing of the agricultural sector of Ukraine in modern economic conditions are provided.

Keywords : agro and industrial complex, bank credit, state support, banking products, credit programs, agricultural development programs

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