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Challenges Of Agricultural And Rural Finance In Cee, Nis And Baltic Countries

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  • Pederson, Glenn D.
  • Khitarishvili, Tamar

Abstract

Initially, we explore the attitudes and perceptions of farmers and low farm profitability as potential constraints to rural financial intermediation and investment in agriculture. As part of this discussion we consider what is factual about the "access to credit problem." Second, we summarize recent changes in agricultural finance and credit conditions in the CEE, NIS, and Baltic countries. The focus here is on observed financing patterns, sources of credit, and the set of constraints which are thought to affect the level of rural financial intermediation. Third, we consider how banks are adapting to the new farming structures. Fourth, we review the primary modes of government intervention in financial markets and the role of government in dealing with the bad loans problem by providing "soft credits" via the banks. We conclude by suggesting the means by which governments can foster development of effective rural financial markets.

Suggested Citation

  • Pederson, Glenn D. & Khitarishvili, Tamar, 1997. "Challenges Of Agricultural And Rural Finance In Cee, Nis And Baltic Countries," Working Papers 14358, University of Minnesota, Center for International Food and Agricultural Policy.
  • Handle: RePEc:ags:umciwp:14358
    DOI: 10.22004/ag.econ.14358
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    References listed on IDEAS

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    Cited by:

    1. Swinnen, Johan F. M. & Gow, Hamish R., 1999. "Agricultural credit problems and policies during the transition to a market economy in Central and Eastern Europe," Food Policy, Elsevier, vol. 24(1), pages 21-47, February.
    2. Urutyan, Vardan E. & Aleksandryan, Mariana & Hovhannisyan, Vardges, 2006. "The Role of Specialized Agricultural Credit Institutions in the Development of the Rural Finance Sector of Armenia: Case of Credit Clubs," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25276, International Association of Agricultural Economists.
    3. Petrick, Martin, 2000. "Land Reform In Moldova: How Viable Are Emerging Peasant Farms? An Assessment Referring To A Recent World Bank Study," IAMO Discussion Papers 14882, Institute of Agricultural Development in Transition Economies (IAMO).
    4. Wiebusch, A. & Henning, C., 2004. "Analyse von Transaktionskosten auf dem ländlichen Kreditmarkt in Polen," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 39.
    5. Dirk J. Bezemer, 2000. "Limitations on De-collectivisation in Central European Agriculture," Tinbergen Institute Discussion Papers 00-037/2, Tinbergen Institute.
    6. Toth Kristof & Toth Jozsef, 2012. "Credit Level Influencing Factors At Hungarian Farms," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 533-537, December.
    7. Junior R Davis & Angela Gaburici, 1998. "The Economic Activity of Private Farms in Romania during Transition. Just how competitive are they?," CERT Discussion Papers 9807, Centre for Economic Reform and Transformation, Heriot Watt University.
    8. József Tóth & Gábor Kemény & Kristóf Tóth, 2012. "Effects of Production and Other Factors on Hungarian Agricultural Farm’s Creditability," MIC 2012: Managing Transformation with Creativity; Proceedings of the 13th International Conference, Budapest, 22–24 November 2012 [Selected Papers],, University of Primorska, Faculty of Management Koper.

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