Serbian agriculture: Programmes of credit support by the state and commercial banks between 2004-2007

Abstract

Serbian agricultural production accounts for a significant percentage of the share in GDP, and almost 1/3 of the Serbian population live on farms. There is a positive balance in food trade, and nearly 17 per cent of total Serbian export belong to agriculture. However, financial support to agricultural production is insufficient and incommensurate to the role and importance of agriculture in domestic economy in comparison with the practice in advanced economies and those in the region. If high interest rates, along with current credit conditions, remain, agriculture will not be able to advance and compete in foreign markets, however highly competitive its export potential may be.

Keywords

• agriculture
• credit conditions
• banks
• agrarian budget
• interest rates