AGRICULTURAL GUARANTEE FUND AS A RISK INSURANCE METHOD OF BANK CREDITING OF AGRO-INDUSTRIAL COMPLEX ENTERPRISES IN UKRAINE

Abstract

The goal of the article is the development of theoretical principles and practical recommendations concerning the improvement of bank crediting of agro-industrial complex (AIC) enterprises based on the use of Agricultural Guarantee Fund opportunities. The object of the research is a combination of theoretical, methodological and applied principles of forming and functioning of Agricultural Guarantee Fund in the process of bank crediting of AIC enterprises. The methodological basis of the study is based on the systematic approach to improving bank crediting of AIC enterprises and searching the ways of the guaranteed risk insurance in credit relations. In the research process, general scientific and special methods were used, namely: bibliographic method (the study of scientific works concerning risk insurance in bank crediting of agricultural enterprises); abstract-logical method; the methods of system generalization, analysis and synthesis. The article focuses on the risk insurance problems of bank crediting of AIC enterprises by creating Agricultural Guarantee Fund (AGF). The dynamics of insuring credit risks in Ukraine in recent years has been studied. The experience of EU countries as to creating and functioning AGF has been generalized; the main purpose of AGF is to reduce and allocate bank risk using the insurance technologies. The advantages of the fund have been substantiated; they will allow saving money due to the “leverage effect” with guarantee to get credit in sizes being significantly higher than the fund resources.

Keywords

• bank crediting
• credit guarantee
• risk insurance
• Agricultural Guarantee Fund
• crediting AIC enterprises