Conditions and Perspectives of financial lending in Macedonian Agriculture and rural Development

Gjosheva-Kovachevikj, Marija and Kovachev, Goran and Risteski, Hristijan (2013): Conditions and Perspectives of financial lending in Macedonian Agriculture and rural Development. Published in: Book of Proceedings No. Fourth International Agronomic Symposium "Agrosym 2013" (6 October 2013): pp. 1137-1142.

Abstract

Agriculture is a fundamental economic activity in Macedonia which constitutes 10% of GDP over the past decade, adding related processing industry increases this share to approximately 15%-16%. During the last period of economic restructuring, agriculture played a critical role in the social and economic stability of the country. As a generator of growth of income and employment (19% of the total employment) agriculture needs a steady stream of funds to increase the competitiveness of the farmers by improving the technological and market infrastructure as well improving quality of life of rural population. Beside the state financial support of agriculture and rural development, the commercial financing - through lending is from utmost importance as well. The absorption of the available funds by rural population is limited by strong criteria. The pressure for acceleration process for developing of the competitive and sustainable agriculture and sustainable rural communities require better access of the funds to farmers. In this regards, the purpose of the research is to explore the existing situation in the lending system in agriculture and further provide analysis and recommendations for improving the commercial form of financing to farmers. Therefore, the desk work and field research through questionnaire and interviews have been conducted in order to collect information about needs and problems of the key actors in the field of lending in the agriculture and rural development. The results have been communicated with the stakeholders at panel discussion and furthermore upgraded and distributed to the relevant institutions and organisations. Findings demonstrate that the lending system in agriculture does not operate in an ideal environment and its facing numerous problems and obstacles

• Item Type: MPRA Paper
• Language: English
• Keywords: lending; agriculture; rural development; financial institutions; farmers
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; H - Public Economics > H8 - Miscellaneous Issues > H81 - Governmental Loans ; Loan Guarantees ; Credits ; Grants ; Bailouts; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture

References

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Ministry of Agriculture, Forestry and Water Economy. (2013) National Strategy for Agriculture and Rural Development for the period from 2014 to 2020, MAFWE, Skopje

Statistical yearbook of the Republic of Macedonia. (2013) State Statistical Office of Macedonia, Skopje.

Macedonian Bank for Development Promotion http://www.mbdp.com.mk/index.php/mk/ Accessed on 20/04/2013

National Bank of Republic of Macedonia http://www.nbrm.mk/ Accessed on 15/02/2013