scholarly journals Credit guarantees in Ukraine’s agriculture: a development mechanism based on international practices

2021 ◽  
Vol 188 (3-4) ◽  
pp. 85-97
Author(s):  
Andrii Starodubtsev ◽  
◽  
Yulia Bakai ◽  
Keyword(s):  
Agricultural Land ◽  
Small And Medium Enterprises ◽  
Arable Land ◽  
State Regulation ◽  
Partial Credit ◽  
Credit Guarantee ◽  
Agricultural Enterprises ◽  
Guarantee System ◽  
Credit Guarantees ◽  
Medium Enterprises

The paper deals with the conceptual approaches to the credit guarantee system as an effective mechanism of state support for agriculture. The importance of introducing a credit guarantee system in Ukraine and creating the Fund for Partial Credit Guarantee in Agriculture, a specialized non-banking financial institution, is emphasized. This will help to overcome obstacles to crediting small and medium agricultural enterprises. The authors have analyzed global credit guarantee schemes. The purpose of this paper is to develop proposals for amendments to the Draft Law «On the Fund for Partial Credit Guarantee in Agriculture», in particular a need to provide legal grounds for non-banking financial institutions, the form of business entities, their mission, criteria for agricultural subjects eligible for partial credit guarantees, financing of the relevant institutions and defining the related management bodies, as well as bodies of state regulation and supervision. The problem statement is attributable to the fact that the effectiveness of institutions providing credit guarantees for small and medium enterprises in agriculture plays an important role in the national economies of most countries. The authors have proposed an approximate financial model of the Fund for Partial Credit Guarantee in Agriculture and made the required economic calculations. Thus, with an initial authorized capital of EUR 10 million, the Fund for Partial Credit Guarantee in Agriculture, with 50% coverage, is able to provide guarantees for the purchase of 25 thousand hectares of arable land by small and medium enterprises at an average cost of EUR 820/ha, taking into account the average normative monetary assessment of agricultural land by regions. Consequently, credit enforcement will allow banking institutions not only to balance credit risk, but also to open access to small and medium agricultural enterprises to bank crediting to the extent necessary for the purchase of agricultural land and investments in production.

scholarly journals Application of the Best International Experience when Developing a Credit Guarantee System for Small and Medium Agricultural Enterprises of Ukraine

2021 ◽  
pp. 147-159
Author(s):  
Yurii LUPENKO ◽  
Svitlana ANDROS
Keyword(s):  
Agricultural Sector ◽  
Arable Land ◽  
Bank Lending ◽  
International Experience ◽  
Production Costs ◽  
Added Value ◽  
Agricultural Enterprises ◽  
Loan Guarantee ◽  
Guarantee System ◽  
Credit Guarantees

The focus of the article is the study of the best international experience in developing the structure and implementation of a loan guarantee system to reduce and distribute risks in financing small and medium-sized agricultural enterprises. Access to finance was identified as the main problem hindering the development of small and medium-sized agricultural enterprises. It has been substantiated that due to its competitive advantages, such as a large area of arable land, low production costs and the possibility of increasing the added value of products, the agricultural sector is a priority sector of the economy. The main obstacles and problems that hinder access to financing and the development of national small and medium agribusiness are identified. It has been substantiated that credit security programs play an important role in reducing restrictions on bank lending to small and medium-sized agricultural enterprises. The basic principles of the implementation of guarantee programs carried out with state participation are given. It has been proven that credit guarantees are one of the tools widely used to support the agricultural sector of the economy. In this case, the most expedient is the issuance of guarantees that provide a partial volume of lending, when the borrowers also bear some responsibility for the return of the funds received. Based on the consideration of international experience, it is concluded that loan guarantee systems are an effective tool that can alleviate the difficulties of entering the credit market for small and medium-sized agricultural enterprises. Key policy directions are proposed that allow correcting the situation with obtaining financing for small and medium-sized agricultural enterprises. The mechanism has been developed to provide state credit guarantees to small agricultural producers. The most effective implementation of the proposed mechanism can be achieved by building a national loan guarantee system with the formation of special institutions specializing in providing investment and innovation projects. The theoretical provisions formulated in the article can serve for further developments in the field of small business support by financial and credit institutions.

scholarly journals The Effectiveness of Technical Guidance for Entrepreneurs in Small and Medium Enterprises in Facing Halal Certification

2020 ◽  
Vol 2 (2) ◽  
pp. 46-49
Author(s):  
Siska Siska ◽  
Hanifah Rahmi ◽  
Almawati Situmorang
Keyword(s):  
Small And Medium Enterprises ◽  
Market Demand ◽  
Certification Process ◽  
Guarantee System ◽  
Assurance System ◽  
Before And After ◽  
Post Test ◽  
The Difference ◽  
Medium Enterprises ◽  
Technical Guidance

Indonesia is the largest Muslim population country in the world, so the market demand for halal products is enormous. However, in fact, there are not many business actors who submit and have halal certificates, especially in small and medium enterprises. This problem can be due to lack of information and sufficient understanding to apply for a halal certificate. The aim of the research is to give technical guidance for preparing halal certification process. The manual method is used to provide training on the halal guarantee system for the preparation of the halal assurance system (HAS). The workshop began with a pre-test and then the presentation of halal assurance system material, the guidance on how to prepare and discussion. All the activities were done by online (WhatsApp group and zoom meeting). The training ended with the post-test to assess the improvement of knowledge of the. To analyze the difference, we used a paired T-test statistical method. The result of this research shows an increasing understanding of participants (p<0,05) through the comparison between before and after training. These activities conclude that the practice of technical guidance for facing halal certification is beneficial for small and medium enterprises in improving knowledge and capability of the halal certification process.

scholarly journals The bank approach to a credit obligor – a farm business – in the context of credit risk and capital adequacy

2012 ◽  
Vol 48 (No. 9) ◽  
pp. 395-398
Author(s):  
H. Sůvová
Keyword(s):  
Credit Risk ◽  
Small And Medium Enterprises ◽  
Capital Adequacy ◽  
Financial Risks ◽  
Agricultural Enterprises ◽  
Bank Management ◽  
New Basel Capital Accord ◽  
Bank For International Settlements ◽  
Medium Enterprises ◽  
Farm Business

The objective of this paper is to enable a bank&rsquo;s view towards a credit obligor. Banks are subject to a lot of financial risks. Credit risk is the most important one. Banks also have to manage the objective of maximum profit on one hand, the prudential rules on the other hand. Recently, the Bank for International Settlements submitted a new concept of prudential rules (The New Basel Capital Accord) that should be accepted by national regulators and applied from 2006/7. This concept brings relatively strict conditions which should improve bank management of credit risk but which are unpleasant for loaning of small and medium enterprises including agricultural ones that are mostly part of this category. Very important role will be still played by non-market supporting instruments, especially guarantees provided by sovereigns. They can improve the competitiveness of agricultural enterprises in the credit market.

scholarly journals State Regulation of Financial and Investment Support for Small and Medium-Sized Businesses

2020 ◽  
Vol 24 (1) ◽  
pp. 81-87
Author(s):  
V. Kovalenko ◽  
Keyword(s):  
Small And Medium Enterprises ◽  
Business Development ◽  
State Regulation ◽  
Limited Information ◽  
Public Authorities ◽  
Normative Documents ◽  
Low Level ◽  
Business Entities ◽  
Medium Enterprises ◽  
Small And Medium Business

Annotation. Introduction. The current state of Ukraine’s economy largely depends on the development of small and medium-sized businesses. Today, there are problems of urgent solution, which are related to financial and investment support for entrepreneurship. The main obstacles to the development of small and medium-sized businesses in Ukraine are: lack of financial security; imperfection of legislation; underdeveloped financial and credit mechanism; quarantine restrictions related to COVAD-19. Purpose. The main purpose of the study is to study the problems, prospects of state regulation of financial and investment support for small and medium business development in Ukraine. Results. The article focuses on identifying problems related to state regulation of financial and investment support for small and medium business development. It is determined that the main obstacles to the development of business entities in Ukraine are: limited opportunities for export; insufficient level of qualification of modern managers; low level of innovative development; low level of business efficiency; lack of an effective system of state support for small and medium business development; limited access to funding sources; lack of incentives for business growth; spread of fictitious entrepreneurship; imperfection of the tax system; lack of effective regulatory support, effective government projects and programs for small and medium business development; limited information and advisory support from public authorities. The article analyzes the main indicators of small and medium business development in Ukraine. The analysis showed that in Ukraine entrepreneurship does not yet play a significant role in ensuring economic growth, its contribution to gross domestic product is only 19,2%. The main legislative and normative documents that regulate the process of financial and investment support of small and medium business are analyzed. The article emphasizes the need to create more favorable conditions for the development of small and medium enterprises by the state. It is substantiated that all measures of state regulation of financial and investment support of small and medium business should be evaluated from the standpoint of their effectiveness. The main indicators for assessing the effectiveness of public policy in the field of small and medium enterprises are identified. These include institutional and legal, budget and tax, financial and investment, institutional and infrastructure and information and advisory vectors of state regulation in the field of development of small and medium enterprises. Conclusions. To increase the efficiency of state regulation of financial and investment support for the development of small and medium-sized businesses, the author proposes to revise the taxation system, revise the procedure for granting state loans and guarantees, expand lending and introduce a system of guaranteed targeted loans for business projects. Keywords: state regulation, financial and investment support, entrepreneurship, small and medium business, .social responsibility of business.

scholarly journals FORMING AND REALIZATION OF TERRITORIAL ENTREPRENEURIAL POTENTIAL IN THE CONDITIONS OF THE MACROECONOMIC ENVIRONMENT DETERIORATION

Management ◽  
2019 ◽  
Vol 28 (2) ◽  
pp. 19-32
Author(s):  
Nastia Savchuk
Keyword(s):  
Small And Medium Enterprises ◽  
State Regulation ◽  
Entrepreneurial Activity ◽  
Business Activity ◽  
Implementation Phase ◽  
Macroeconomic Conditions ◽  
Methodical Approach ◽  
Medium Enterprises ◽  
Efficiency Indicators ◽  
Macroeconomic Environment

The relevance of the research: small and medium-sized businesses play an important role in raising the level of employment of the population, reducing social tension, ensuring a competitive environment, economic stability and innovation growth, creating preconditions for the formation of the middle class. It is one of the most important signs of a market economy and a basis for increasing socio-economic development of the country. Taking into account the complex economic and political situation in Ukraine, there is a need to investigate the current state of small and medium enterprises, territorial entrepreneurial potential in the conditions of deteriorating macroeconomic conditions that will allow them to find out the directions of their development and identify ways to improve their entrepreneurial activity.Hypothesis of the scientific research: it is assumed that the importance of internal factors, defining the state of entrepreneurial potential of territorially localized formations, increases on the phases of crisis and depression of the medium-term economic cycle. At the same time, the importance of external factors increases on the phases of activity and recovery.The aim of the research is to reveal the key elements of entrepreneurial potential, which defines positive dynamics of business activity and efficiency indicators; to suggest the theoretical and methodical approach to the maintenance of methods of state regulation of entrepreneurial potential of territorially localized formations.The methods of the research: it was proved by means of correlation analysis, that the most significant elements of entrepreneurial potential in terms of ensuring positive dynamics of business activity and efficiency indicators are the following: the consumer value creation, the dynamics of the macroeconomic environment, the business competition level and the quality of entrepreneurial thinking.The results of the research: theoretical and methodical approach to the matter of state regulation of entrepreneurial potential of territorially localized formations is suggested; the methodical approach to the efficiency evaluation of measures of state regulation of entrepreneurial potential of territorially localized formations is developed.Conclusions: it is proved that the efficiency of state regulation measures of entrepreneurial activity is defined by completeness of accounting of features of entrepreneurial potential of separate territorially localized formations and their compliance to the implementation phase of entrepreneurial potential.

scholarly journals PRIORITY DIRECTIONS OF REALIZATION OF THE INSTRUMENTS FOR FINANCING SMALL AND MEDIUM ENTERPRISES IN MODERN CONDITIONS: REGIONAL COMPARISON

2017 ◽  
pp. 82-87
Author(s):  
I. P. Vishnyakov
Keyword(s):  
Financial Services ◽  
Small Businesses ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Banking System ◽  
Special Kind ◽  
Developed Countries ◽  
State Regulation ◽  
Special Role ◽  
Medium Enterprises

The article considers the problem of supporting small and medium businesses in the southern Federal district and Rostov region. The topic is relevant, because on small and medium enterprises hold the economy of the developed countries. The development of the microcredit sector in Russia and market development of financial services requires the theoretical study and practical resolution of issues that are associated with the organization levers of the financial interaction between the public and private sectors of the economy, the development of the legal base and state regulation. Special attention is paid to the problem of microcrediting of small businesses, with a description of regional programs of support and analysis specific amounts of subsidies and microcredit, the conditions of issuance, etc.. The specifics of microfinance organizations and credit organizations of a special kind, their special role and positive impact on the economic processes in Russia, which is reflected in the demand for loans to enterprises medium and small businesses and strengthening the flow of capital through the provision of loans to enterprises of the real sector of the economy, and participation in the transformation of the banking system, to ensure the flexibility of the financial system and the functioning of the differentiated structure of the banking organizations in Russia.

scholarly journals The Legal Regulation of Rental Contracts on the Land Rental Market in Slovakia

2013 ◽  
Vol 2 (1) ◽  
pp. 32-36
Author(s):  
Ivan Takáč ◽  
Jarmila Lazíková
Keyword(s):  
Agricultural Land ◽  
Arable Land ◽  
Legal Regulation ◽  
Agricultural Area ◽  
Land Rent ◽  
Market Prices ◽  
Legal Norms ◽  
Agricultural Enterprises ◽  
Land Rental ◽  
Legal Forms

Abstract Rented land accounted for 53% of the total agricultural area at EU-27 level in 2009. Rented land as a proportion of total utilized agricultural area in Slovakia (UAA) is one of the highest (FADN, 2009). That is why land rent plays a very important role. Therefore, the Slovak law maker approved special legal regulation to stabilize the long-term rent of agricultural land. The paper analyses how these legal norms affect the behaviour of the land tenants doing their business activities in the agriculture. Within the paper, the development of the market farmland prices and farmland rental payments development with the administrative land prices and rental payments stipulated by the Slovak national law is analysed. Based on the research results we found out that prices of arable land have statistically significantly increased. In spite of these facts the market prices are still lower than their administrative prices(1) especially in the case of farmland of the highest quality. According to the results the rent payment for one hectare of land is not influenced by the minimum rent payment stipulated by law. Contrary, minimum rental period stipulated by law, legal forms of agricultural enterprises and quality of land have significant impact on the rental payments. The larger acreage of land of one agricultural businessman press down the land rent payments. The legal forms of enterprises as well as the land rent period belong to the dominant factors which influence the land rent payment. (1) Administrative price is a price of farmland stipulated by the law.

Sign in / Sign up

Export Citation Format

Share Document