The Problem of Financing Agricultural Enterprises in the Context of the COVID-19 Pandemic

Abstract

AbstractThe main obstacle to the implementation of lending to agricultural enterprises is the high cost of credit. In our opinion, an adequate state agrarian policy should increase the interest of commercial banks in providing loans. In our opinion, it should be aimed at increasing the availability of bank loans for agricultural enterprises. For this purpose, it is advisable to partially compensate the payment of bank interest by agricultural enterprises. In the world practice in the banking sector, negative rates of return on deposits have found application. Commercial banks have the opportunity to borrow money at a discount rate. At the moment, there is a practice according to which the Central Bank has only one discount rate. In our opinion, there could be several discount rates at the same time. We adhere to the point of view that depending on the purposes to which a commercial bank directs funds received from the Central Bank, the size of the Central Bank's discount rate may be different and even have a negative value.KeywordsEnvironmentAgricultural enterprisesCOVID-19 pandemic