Concessional Lending as a Perspective Tool of Development of Agribusiness

L.V. Popova, D.A. Korobeynikov, O.M. Korobeynikova, S.J. Shaldokhina, D.O. Zabaznova
European Research Studies Journal, Volume XIX, Issue 2, 12-20, 2016
EOI: 10.11214/thalassinos.19.02.002

Abstract:

The aim of the research is to find the solution to the problem of food security in non-food countries, i.e., countries in which conditions for agriculture are unfavorable. The authors offer the hypothesis that solution to this problem requires development of agribusiness, a perspective tool of which is concessional lending. In the process of the research, in order to verify this hypothesis, the authors use the methods of modeling of socio-economic systems, as well as systemic, problem, institutional, and SWOT-analysis. As a result of the research, the authors come to the conclusion that the most important problem of development of agribusiness in non-food countries is lack and low accessibility of financial resources, which is caused by high seasonality of business, its low profitability, and, correspondingly, its low investment attractiveness. Concessional lending allows solving this problem and increasing the accessibility of financial resources for agro-enterprises, which gives them a possibility for modernization of equipment and technology of production, reduction of product cost, and increase of profitability and competitiveness. The article views the peculiarities of crediting agricultural enterprises, determines the role of small enterprises of agribusiness, develops recommendations for provision of concessional lending for agro-enterprises, and describes the mechanism of development of agribusiness by means of concessional lending.


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