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Theoretical Basis of Credit Support as a Factor of Economic Growth of Agricultural Enterprises

Author

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  • Halyna Korniychuk

    (Institute of Forages and Agriculture of Podillya, Vinnytsia, Ukraine)

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.

Suggested Citation

  • Halyna Korniychuk, 2014. "Theoretical Basis of Credit Support as a Factor of Economic Growth of Agricultural Enterprises," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 103-107, December.
    • Handle: RePEc:iaf:journl:y:2014:i:4:p:103-107
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    File URL: http://www.afj.org.ua/pdf/230-teoretichni-osnovi-kreditnogo-zabezpechennya-yak-faktoru-ekonomichnogo-zrostannya-silskogospodarskih-pidpriemstv.pdf
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    File URL: http://www.afj.org.ua/en/article/230/
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    More about this item

    Keywords

    credit; financing; economic growth; agricultural enterprises; leasing; credit co-operatives;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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