The Economic Reform and the Increasing Role of Credit

Abstract

In a socialist economy, credit emerges with objective necessity from relations of commodity production and exchange and it is consciously and systematically utilized for the sake of expanded reproduction. This is a specific form of the planned redistribution of value (mainly in a monetary form) and of providing monetary means to socialist enterprises on the basis of repayment and, as a rule, with the payment of interest for their use. Credit promotes a fuller and timely satisfaction of the monetary needs of enterprises for their economic operations. It creates additional material incentives and effective forms of financial control.