Modern Problems of Bank Lending of Enterprises of the Agricultural Complex of Ukraine

Abstract

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.

Credit and Investment support for the development of Ukraine’s agricultural and economy sector

“…Berzhanir (2020) defines the crediting mechanism of the agro-industrial complex as economic relations to provide agro-industrial enterprises with a source of financing under the conditions of return, payment, security, term, aimed use and differentiation, accompanied by the specificity of agro-industrial enterprises. S. Arzhevitin et al (2021) consider agricultural credit as an independent form of credit relations. Its specificity lies in the fact that lending takes place on preferential terms, which requires a strict accounting of the budgetary and extra-budgetary resources spent on it and an assessment of the effectiveness of their use; the purpose of the loan, consideration of the needs of the borrower; requires predicting potential risks, as well as planning costs and calculating profits.…”

Untitled

“…I. Berzhanir (2020) defines the crediting mechanism of the agro-industrial complex as economic relations to provide agro-industrial enterprises with a source of financing under the conditions of return, payment, security, term, aimed use and differentiation, accompanied by the specificity of agro-industrial enterprises. S. Arzhevitin et al (2021) consider agricultural credit as an independent form of credit relations. Its specificity lies in the fact that lending takes place on preferential terms, which requires a strict accounting of the budgetary and extra-budgetary resources spent on it and an assessment of the effectiveness of their use; the purpose of the loan, consideration of the needs of the borrower; requires predicting potential risks, as well as planning costs and calculating profits.…”