ACCOUNTING AND FINANCIAL PROBLEMS OF BANK LENDING TO AGRO-INDUSTRIAL ENTERPRISES IN UKRAINE

##plugins.themes.bootstrap3.article.main##

##plugins.themes.bootstrap3.article.sidebar##

  Larysa Poliatykina

  Iryna Samoshkina

  Victoria Borisova

Abstract

The purpose of the article is to study the problems of implementing the credit mechanism in the agrarian sector, the rationale for the need to increase the amount of lending to the agro-industrial complex and the analysis of existing studies of bank lending to agricultural enterprises. The issue of solving the problems of lending to the agro-industrial sector in the modern scientific literature is not addressed enough. In light of this, the above-mentioned issues require further comprehensive research in order to identify effective ways to solve the existing problems. Problem statement. The task of the research is to: study the current state of bank lending in the country, analyze the state of accounting and financial support for lending to agro-industrial enterprises and determine the prospects for the development of agricultural enterprises in Ukraine; analyze the shortcomings and formulate the main trends of these enterprises. As a result of the research to investigate the accounting and financial problems of lending to agricultural enterprises, to highlight in detail their main problems and features. Methodology. The analysis of the activities of agricultural enterprises and the peculiarities of its management. The issues of formation and functioning of farms, as well as document management and business administration in these farms are debatable. Results. According to the research, accounting and financial problems and possible prospects for lending in the agricultural sector of Ukraine were analyzed. As a result of the study, we have analyzed the state, problems and possible prospects of lending in the agrarian sphere of Ukraine. The features of credit relations of agro-industrial enterprises with commercial banks are revealed, the state and trends of development, as well as the modern conditions of bank lending to agricultural enterprises are analyzed. The need for the state support in providing this industry with affordable long-term lending resources and the introduction of preferential credit mechanisms for agricultural commodity producers is determined. Practical implications. Peculiarities of credit relations of agro-industrial enterprises with commercial banks are revealed, their state and development tendencies are analyzed, as well as modern conditions of bank crediting of agrarian enterprises. They develop the real economy, expand employment opportunities and promote competition. The necessity of intensifying the development of agro-industrial enterprises, which is an important task of the state, has been proved. The solution of accounting and financial problems of bank lending to agro-industrial enterprises in Ukraine should be based on the introduction of European experience, which will contribute to the creation of a modern market economy with social justice. Lending to agricultural enterprises by commercial banks is currently quite complicated, and sometimes even impossible. The reasons are low profitability, return on capital employed and liquidity of the property. At present, farmers are considering alternative options for the replenishment of working capital. Therefore, the avalisation of bills and agrarian receipts may be used as an alternative to bank lending to meet the needs for the crop protection agents, fertilizers and planting material. These methods make it possible to obtain a delay in payment for the acquired resources or financial resources for the acquisition of working capital in the provision of agricultural enterprises with future harvest. The formation of strategic directions of creditor activity of banking institutions of Ukraine is considered on the example of activity of JSB "UKRGASBANK". The article pays attention to the issues of credit insurance in order to protect the interests of banking institutions and improve the formation of directions for solving the problems of bank lending to agricultural enterprises. Value/originality. The need for state support in providing agricultural enterprises with affordable long-term loans and the introduction of mechanisms for targeted lending to agricultural producers, which is possible only through a balanced government policy of comprehensive support for this sector of the economy. The directions of the decision of problems of bank crediting of the agricultural enterprises are offered. The improvement of legislation on the agrarian policy, the regulation of lending operations, the rational distribution of funds, their effective use and timely repayment of debt, and the corresponding policy of the state could remedy the situation.

How to Cite

Poliatykina, L., Samoshkina, I., & Borisova, V. (2022). ACCOUNTING AND FINANCIAL PROBLEMS OF BANK LENDING TO AGRO-INDUSTRIAL ENTERPRISES IN UKRAINE. Baltic Journal of Economic Studies, 8(1), 126-133. https://doi.org/10.30525/2256-0742/2022-8-1-126-133
Article views: 269 | PDF Downloads: 132

##plugins.themes.bootstrap3.article.details##

Keywords

agricultural enterprises, bank lending, borrower, credit relations, commodity producer, lender, state support, accounting, finance, problems

References

Poliatykina, L., & Kadatska, A. (2018). Biznes-organizatsiya v sel'skokhozyaystvennom sektore [Busines organization in the agricultural sector]. Economic and law paradigm of modern society. Issue 1. Р. 44-49.

Ruda, O. (2013). Oblik bankivskoho kredytuvannya silskohospodarskykh pidpryyemstv [Accounting for bank lending to agriculture enterprises]. Available at: http://sophus.at.ua/publ/2013_04_18_19_kampodilsk/sekcija_5_2013_04_18_19

World Economic Forum; Global Competitiveness Report 2015-2016; Date of data collection or release: 1st September 2015. Available at: www.weforum.org/gcr

Holovnyy zhurnal z pytan ahrobiznesu [The main magazine on agribusiness]. Available at: https://propozitsiya.com/ua/finansove-zabezpechennya-silskogospodarskih-pidpriiemstv/

Aranchiy, V. I. (2011). Osoblyvosti bankivskoho kredytuvannya ahrarnykh tovarovyrobnykiv v suchasnykh umovakh [Features of bank lending to agrarian commodity producer sin modern conditions]. Available at: http://www.pdaa.edu.ua/sites/default/files/nppdaa/2011/01/010.pdf

Ukrainskiy vybor: Pravda naroda [Ukrainian choice: the truth of the people]. Available at: http://vybor.ua/article/economika/problemy-kreditovaniya-agrariev-v-ukraine.html.

Rud, L. P. (2013). Osoblyvosti bankivskoho kredytuvannya investytsiynoyi diyalnosti v Ukrayini [Peculiarities of Banking Lending of Investment Activities in Ukraine]. Innovative economy. № 6 (44). P. 261–264.

Poliatykina, L. (2018). Obgruntuvannya ta tendentsiyi rozvytku pidpryyemstv maloho biznesu v Ukrayini [Rationale and trends of development of small business enterprises in Ukraine]. Economic and law paradigm of modern society. Issue 2. P. 31–39.

Poliatykina, L. (2018). Rolpravovykh ta sotsial nykhaspektiv u aktyvizatsiyi strakhovoyi diyalnosti pidpryyemstv maloho biznesu [The role of legal and social aspects in activation of insurance activities of small business enterprises]. The scientific heritage. (Budapest, Hungary). No 23. Issue 1. P. 18–21.

Borisova, V., & Samoshkina, I. (2010). Providing lease transactions of agricultural enterprises with bank loans in Ukraine. Ekonomika i organizacja gospodarki żywnościowej. Warszawa: SGGW. Nr. 81, p. 27–39.

Vdovenko, L. O. (2011). Neobkhidnist ahrarnykh pidpryyemstv u kredytnomu zabezpechenni [The Need of Agrarian Enterprises in Credit Provision]. Bulletin of the Chernivtsi Trade and Economic Institute. № 2. Issue1. P. 94–98.

Mensick, M. J. (2011). How to Support Value Chain Finance in a Smart Way? Policy Statement of the European Microfinance Platform Rural Outreach & Innovation Action Group. 20 р.

Leone, P., Panetta, I. C., & Porretta, P. (2013). Credit Guarantee Institutions, Performance and Risk Analysis: An Experimental Scoring. Bank Stability, Sovereign Debt and Derivatives. Palgrave Macmillan Studies in Banking and Financial Institutions / J. Falzon (ed.) (pp. 115–160). London, Palgrave Macmillan.

Caselli, S., Corbetta, G., Rossolini, M., & Vecchi, V. (2019). Public Credit Guarantee Schemes and SMEs Profitability: Evidence from Italy. Journal of Small Business Management, 57, 555–578.

Balog, A. (2018). Analysis of SME Segment Lending Processes in Light of Credit Guarantees in the European Union. Financial and Economic Review, 17 (1), 62–82.

Key, N., Litkowski, C., & Williamson, J. (2018). Current Indicators of Farm Sector Financial Health. Report of ERS USDA.