PROJECT FINANCE AS SUPPORT TO AGRICULTURAL PRODUCTION
Abstract:
There is a need to use new financial instruments in agroindustrial production, since the existing mechanisms of crediting and subsidizing of interest rates are not sufficiently effective. The agriculture is characterized by low profitability which does not allow producers to use effectively borrowed funds as their cost grows at advancing rates. As a result of using the bank credits, the financial situation in agricultural enterprises has deteriorated, triggering the need for development of new financial instruments that would enable agricultural producers to access funding sources more easily. Accordingly, the paper proposes the use of project financing mechanisms. Also, the authors recommend improving the methods of project assessment with the aim of providing the most effective financial support to agroindustrial production. The implementation of the proposed method will allow for improving the mechanisms of support to agricultural producers.
CITATION:
IEEE format
M. A. Ivanov, “PROJECT FINANCE AS SUPPORT TO AGRICULTURAL PRODUCTION,” in FINIZ 2015 - Contemporary Financial Management, Belgrade, Singidunum University, Serbia, 2015, pp. 196-198. doi: 10.15308/finiz-2015-196-198
APA format
A. Ivanov, M. (2015). PROJECT FINANCE AS SUPPORT TO AGRICULTURAL PRODUCTION. Paper presented at FINIZ 2015 - Contemporary Financial Management. doi:10.15308/finiz-2015-196-198
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