Development of credit mechanisms to ensure the adequacy of funds of agricultural producers

Issue № 6, 2020, article № 3, pages 23-31

Section: Economic mechanism of managing

Language: Russian

Original language title: РАЗВИТИЕ МЕХАНИЗМОВ КРЕДИТОВАНИЯ ДЛЯ ОБЕСПЕЧЕНИЯ ДОСТАТОЧНОСТИ ДЕНЕЖНЫХ СРЕДСТВ СЕЛЬСКОХОЗЯЙСТВЕННЫХ ПРОИЗВОДИТЕЛЕЙ

Keywords: PREFERENTIAL LENDING, CASH, CASH FLOWS, INTEREST RATE, AGRICULTURE, BANKS, SUSTAINABILITY

Abstract: The sustainability of agricultural organizations depends on the sufficiency of money needed to finance investments in fixed assets, replenishment of working capital, and fulfilment of obligations. The organization of stable cash flows is a significant factor in supporting agricultural producers. The lack of sufficient financial resources restricts the development of agricultural production. In this regard, the implementation of preferential lending mechanisms in agriculture is particularly relevant. Created in 2017 by the Ministry of agriculture of the Russian Federation, the mechanism of preferential lending plays a significant role in increasing the availability of funds. At the same time, the analysis demonstrates the need to modernize approaches to the application of the developed mechanism of preferential lending, which involves reducing the requirements for collateral, the number of requested documents, the timing of decisions on granting loans, etc. Correlation analysis confirms that fluctuations in interest rates do not always lead to changes in the dynamics of agricultural production. Moreover, the continuation of the policy of reducing the Bank of Russia's key rate also makes to change the range of interest rates set under the preferential lending mechanism. It is advisable to consider the possibility of normalizing the value of the preferential interest rate depending on changes in the key rate. In addition to developing the mechanism of preferential lending, it is proposed to consider the possibility of using specialized refinancing instruments of the Bank of Russia for the purpose of providing financial support to agricultural producers. The reorientation of specialized refinancing mechanisms to specific industries will increase the effectiveness of the Bank of Russia's support to domestic producers.

Authors: Larionov Aleksandr Vitalevich