CREDIT UNIONS AS A MEANS OF FORMING AND RATIONAL USE OF FINANCIAL RESOURCES OF AGRICULTURAL ENTERPRISES

Main Article Content

Olena Volodymyryvna DOBROVOLSKA

Abstract

Introduction. Financial and credit relations in the agrarian sector are complex for the economy of Ukraine in market conditions. The demand of agricultural producers to financial and credit resources is not satisfied in full. The main reason is prohibitively high fees for loans, which with the current level of profitability makes them attract unprofitable.

Purpose. The aim of the article is the substantiation of necessity of use of agricultural enterprises of the financial mechanism of the credit Union. Financial and credit possibilities of the credit Union to agricultural enterprises are an effective tool of formation and rational use of financial resources in market conditions.

When considering and analysing the activities of credit unions were used the following research methods: analysis of the financial activities of credit unions, the analogy method in determining the status and development prospects of credit cooperation of Ukraine, the comparison in determining methods of performance management of credit unions.

The main results of the study. Agriculture, in particular agriculture, most in need of financial protection and financial support. Due to seasonal production cycles, a greater period of capital turnover. From the agricultural sector comes to the consumption and processing of 90 % of food resources.

Financial mechanism of the credit Union consists of the following sequence: 1. The credit Union members (savers) invest in a credit Union your money. 2. Other members of the credit Union (the borrowers) take the money in loans. 3. For the loan borrowers pay interest. 4. Received from the borrowers the interest is paid to depositors as compensation for the contribution and are used to cover expenses for activities of the credit Union and the formation of its reserves.

To ensure a high level of reliability and stability of credit unions continue to generate capital. In 2015 the capital of credit unions is 277,4 million USD. 5.3 (1.9 %) more than in 2014. In particular, 77.2 % of the capital is the reserve capital. In 2015, some credit unions at the expense of reserve capital cover for losses totaling 6 million USD.

Scientific novelty of the research results. The main aim of the Union activity can be defined as financial and social protection of its members by bringing their personal savings to peer lending financial support to entrepreneurial initiatives and the provision of other financial services.

The conclusions and specific suggestions of the author. Developed the following strategic directions of development of credit cooperation system in Ukraine: ensuring stability of functioning of system of credit cooperation, systematization and reference state regulation of activity of credit unions and the development of self-regulation; implementation of financial rehabilitation of credit unions and insurance contributions (deposits), participation in which for credit unions is required; creation of conditions for competitive credit unions provide financial services for its members by expanding the range of consumers of financial services to credit unions, increased financial services, which will provide institutions of credit cooperatives, expanding the list that they serve, the types of financial instruments, and the creation of Central credit unions financial institution.

Article Details

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Статті
Author Biography

Olena Volodymyryvna DOBROVOLSKA, Dnipropetrovsk State Agrarian and Economic University,

Ph.D., Associate Professor of Finance Department

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