Zaiets Oleksandr, graduate student of the third (educational and scientific) level of higher education, National Scientific Center «Institute of Agrarian Economy», Kyiv, Ukraine

ORCID ID: 0009-0004-7167-208X
e-mail: azzubr@gmail.com

Scientific and Methodological Aspects of Assessing Credit Security for Agricultural Enterprises in Conditions of Limitations and Challenges

Abstract. Introduction. The article substantiates the scientific and methodological narratives of credit provision for agricultural enterprises in the context of mutually conditioned credit relations and assessment of optimal indicators of creditworthiness of borrowers of credit resources of the agricultural industry. From the standpoint of social and economic relations, forms of financial services, the main approaches to the definition of the concept of “credit” are grouped.

Purpose. The purpose of the study is to substantiate the scientific and methodological narratives of credit provision for agricultural enterprises in the context of mutually conditioned credit relations and to assess the optimal indicators of creditworthiness of borrowers of credit resources in the agricultural industry.

Results. The author’s interpretation of the concept of credit is determined as a system of organizational and economic relations between the creditor and the borrower, regulated by a credit agreement and arising during the provision of funds for temporary use on the basis of return, intended use, payment, maturity and security. It is proved that the relationship has a number of characteristic features that determine the nature of bank credit and distinguish it from other economic phenomena by the nature of the flow of funds from banking and non-banking institutions to support agricultural enterprises, the restoration of their fixed and working capital in combination with state regulation. The features of credit provision for agricultural enterprises are analyzed from the perspective of real opportunities for using preferential lending mechanisms, insurance coverage of collateral and resources against credit risks.

Conclusions. In the context of a scientific approach to determining credit risks and developing individual credit programs to take into account the specifics of agricultural production, a methodology for scoring potential production crises and loss of solvency of an agricultural enterprise-borrower has been developed, which takes into account social and environmental characteristics to achieve the goals of credit provision for a business entity. The structure of a graph in a spatial neural network of factors of production crises and loss of solvency of a borrower of credit resources is presented. Normalized vectors are constructed according to the criteria of “error”, “deficiencies”, “symptoms”, which take into account potential production crises and loss of solvency of an agricultural enterprise-borrower, and also negatively affect the credit risk of banks.

Keywords: credit security, agricultural enterprises, loans, production crisis, financial condition, creditworthiness, solvency, credit risk.

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