Theoretical Basis of Credit Support as a Factor of Economic Growth of Agricultural Enterprises
Journal Title: Oblik i finansi - Year 2014, Vol 1, Issue 4
Abstract
An important factor of economic growth of agricultural enterprises is sufficient financial support, which contains significant proportion of loans. The selection of optimal structure of financial support resources is vital in a market economy. Progress in bank lending is caused by the development of market economy, where the relationship between banks and borrowers comes to the fore. This article attempts to determine the place of credit as a factor of financial support of economic growth for agricultural enterprises. In particular, it is considered the mechanism of bank crediting of business, which is determined for each commercial bank individually. It is defined that currently the crediting of agricultural enterprises is under development: formed and adopted regulatory framework, credit co-operatives in rural areas are in a constant progress. At the same time, there are necessities of creation and implementation of the integrated system of financial support of innovations, including the mechanisms of cheaper loans and encourage banks to credit innovation projects in agriculture.
Authors and Affiliations
Halyna Korniychuk
Keywords
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- EP ID EP142542
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