Microcrediting of Farms and Households in Countryside of Ukraine: Concept Development

Although small agricultural goods producers such as farms and households in countryside make weighty contribution to agricultural production in Ukraine, they have limited access to crediting. Credit cooperative institutions are optimal institutional type for rural microcrediting. The existing credit unions however have not evolved significantly in the country and in particular they do not play any significant role in microcrediting of small agricultural goods producers in Ukraine. Purpose of the article is to determine main parameters of concept development for the system of farm and household microcrediting in Ukrainian countryside. The main purpose of implementation of such system is better access to financial resources for above-mentioned category of agricultural goods producers. The concept worked out by the author envisages set-up of new cooperative institutions – agricultural credit cooperatives for whose efficient functioning it is intended to form the credit guarantee fund for agriculture and implement settlement system using bills of exchange (including financial bills)accepted by the credit cooperative (in future – cooperative bank) and avalized by the credit guarantee fund for agriculture.