Bank crediting of investment and innovative activity of agricultural enterprises

Abstract

In the process of market reforms the sources of financing economic activity have been reduced in most agricultural enterprises. Under these conditions the external sources of financing become very important. The credit resources of banks are the most important ones among external resources. Investment crediting is a traditional banking operation, but the participation of domestic banks in the financing of innovative projects of agricultural enterprises is not widespread.

A necessity of realization of investments into agricultural enterprisesis an objective one due to the specifics of process of its production.  However,its own financing is not enough for development of enterprises, that is why there is a necessity of the external bringing in of money. Receipts from banking institutions, both credit and investment resources, can be considered as its important constituents. This fact causes the necessity of research of mutual relations of banks and enterprises taking into consideration their credit and investment activity.

Features and necessity of realization of investment and innovative development of agricultural enterprises are considered in the article.  The credit location is determined as one of the basic financial sources of investments.