Improvement of credit relationships of the state and socially significant entities of the agricultural sector of the economy

Abstract

Introduction. In the conditions of insufficient volume of lending to important sectors of the economy, it is necessary to expand the list of instruments and change the conditions of state lending to socially significant economic entities. The basis of the changes should be the relaxation of the requirements for securing the loan and the compensation of part of the interest rate on the loan. Problem Statement. There are objective and subjective factors affecting the demand and supply of loans in the national credit market. These include the credit policy of the National Bank of Ukraine, credit, market and other risks, internal policy and target orientations of financial and credit institutions, in particular, targeting those business objects that provide an opportunity to obtain profit with minimal or controlled risks. Therefore, in the agrarian sphere, a situation arises in which lending is insufficient or impossible for most of its agents. Purpose. To justify the need to improve lending relations for financial support of socially significant business entities. Methods. The following methods are used: abstract-logical, systematization, dialectical and formal logic, expert evaluations. Results. The existing mechanisms aimed at the development of lending relations have been studied. a number of negative phenomena related to the inefficiency of the existing interest rate compensation mechanisms and state guarantee of loans have been identified. The need for preferential state lending to socially significant business entities with minimal risks of non-repayment of loans has been proven. Conclusions. The problems of lending development can be solved through legal, institutional and organizational mechanisms, the application of which is aimed at taking into account the social economic significance of lending objects, minimizing credit risks and ensuring the sustainable development of lending objects.