Profit, Capital Charges, and Interest

Abstract

The decisions of the Twenty-Fourth Congress of the CPSU envisage the more extensive use of the finance and credit mechanism the interest of accelerating technical progress and the intensification of production. As applied to credit relations, this means that accordance with the tasks of the national economic plan, the bank must expediently direct loans chiefly toward the satisfaction of the economy's needs, promoting the increased effectiveness of social production on the basis of technical progress. To this end, it is necessary to organize that credit mechanism which would maximally stimulate each enterprise to meet its plan targets, and increase the bank's influence on the production and circulation of commodities and on the more complete satisfaction of demand. Credit relations must be properly combined with directive plan targets. In his report at the Twenty-Fourth Party Congress, L. I. Brezhnev noted that in its work to improve the management of the national economy, the Party strictly adhe...