Providing Credit Guarantee Scheme in Agriculture of Ukraine

Small and medium-size businesses, despite their significant contribution to agricultural production in Ukraine, do have limited access to financing. Existing public support mechanisms (interest rate subsidies, leasing programs) do not solve the problem of these categories of enterprises access to credit resources. Introduction of credit guarantee scheme is a more effective mechanism to support small and medium-size businesses. As international experience shows, it is a market mechanism - the state does not intervene directly in the loan granting, agrees to reduce collateral requirements, lower interest rates, reduce the bank - AMEs information asymmetry. For the purposes of effective loan guarantee scheme first of all it is required to ground the following parameters: purpose, target group, financing, pricing, risk management and control scheme. In the article it is clearly proved what the effective scheme parameters should be to ensure the access of small and medium-size Ukrainian agricultural enterprises to credit. The author has also shared his own idea of credit guarantee scheme functioning for national agricultural companies.