Abstract
The current state of financial provision of agriculture in Ukraine is generally unsatisfactory; therefore, the problem of financing the agrarian sector of the economy in the form of lending and investing appears. The purpose of the article is to assess the impact of external financial support of enterprises in the form of lending and investing on agricultural productivity, as well as an assessment of the risk of overdue loans in the regional section of the agrarian sector of the Ukrainian economy. It is investigated the dependence of income (proceeds) on sales of products, proceeding from the needs of agricultural lending in ensuring the efficiency of its economic activity. Thus, lending and investing in agriculture contributes to increasing sales volumes and revenue (sales) growth from sales, as well as stimulating the development of agrarian enterprises, but the correlation between the analyzed indicators is insignificant. The evaluation results indicate a significant risk of overdue loans to agrarian enterprises for all regions of Ukraine, due to low technical efficiency and high level of delinquency. Significant differentiation of regions according to the level of technical efficiency has been revealed, which may indicate significant reserves of its increase. At the same time, it was found that the interest rates on agricultural loans are not a decisive factor for delays in loans granted to enterprises. In order to improve the situation, it is necessary to increase the volume of external financing and the link density between the parameters: lending – investment – the growth of production and sales, which will allow the formation of a functioning environment, taking into account the possibilities of optimizing costs in each region of the state. Key words: risks, lending, investment, agriculture, risk assessment, agrarian enterprises.
Highlights
The current state of agriculture development necessitates the obtaining of additional financial resources, because of its own sources of financing is not enough, so there is a problem of financing agriculture in the form of lending and investing, which in its turn determines the non-return of credit resources risk
Taking into consideration the influence on the income from the sale of agricultural products (Y) of the lending and investment processes of enterprises, we considered using the correlation-regression analysis of the following dependency options: - income from sales of the given credit resources products; - income from sales of the volume of investments of products; - volume of investments from the given credit resources; - volumes of overdue loans granted to agrarian enterprises from the value of interest rates
Low correlation coefficients show a small impact on lending and investment in the process of production and sales of agricultural products, which allows us to conclude that there are significant risks of non-repayment of loans and loss of investment
Summary
The current state of agriculture development necessitates the obtaining of additional financial resources, because of its own sources of financing is not enough, so there is a problem of financing agriculture in the form of lending and investing, which in its turn determines the non-return of credit resources risk. The analysis of recent publications shows that scientists are investigating the issue of lending to agricultural commodity producers [1; 2], capital investment relations with the agrarian sector productivity [3], risk management in agribusiness [4] etc. The author proposed a dynamic model for covering credit risks with reserves, that depend on the effect of credit growth rate on credit risks level [5] It is worthwhile mentioning the model of credit scoring for the agricultural loan portfolio offered by Ar. Bandyopadhyay. With a high degree of scientific research positive assessment of this issue, some aspects of credit risk management remain controversial and require comprehensive scientific study
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