Management of the Process of Formation of Financial and Credit Infrastructure to Support Agricultural Enterprises

Kateryna Andriushchenko, Vitalii Tkachuk, Vitalii Lavruk, Vita Kovtun, Oleksandr Datsii, Ganna Ortina and Helena Petukhova

International Journal of Financial Research, 2021, vol. 12, issue 1, 137-143

Abstract: The paper deals with the composition and functions of the financial and credit infrastructure of agricultural enterprises, the necessity of development of its institutes is substantiated. The development of financial and credit infrastructure is a vital part of any developed agricultural sector. Due to the length of the production cycle, the seasonality of production and the associated nature of the formation of costs and stocks, agricultural enterprises lack sources for continuous financing. The use of borrowed capital allows you to significantly expand the volume of economic activities of the enterprise, ensure a more efficient use of its own funds, and accelerate the renewal of fixed assets. In order to attract resources and, consequently, to invest in the agricultural sector, it is extremely important to strengthen both agriculture and the financial sector. This requires a coherent strategy with consistent regulation and policies that meet the needs of the sectors and correspond to the real capabilities of all actors in both sectors. The paper proposes a methodology for calculating the integral indicator of the efficiency of participation of all economic entities and financial and credit infrastructure of agricultural enterprises.

Keywords: agriculture; sustainable agriculture; development; financial and credit infrastructure (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijfr11:v:12:y:2021:i:1:p:137-143

DOI: 10.5430/ijfr.v12n1p137

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