Involvement of commercial banks in credit and financing of the agricultural sector

Abstract

The access of enterprises from the agrarian sector in the Republic of Moldova to credit and financing depends on their financial potential, determined by the specificity of agricultural production, but also by the specificity and efficiency of the national financial institution. Despite the specificity of the activity in the agricultural sector, financing opportunities are constantly increasing. Commercial banks, as specialized financial-lending institutions, are involved in financial support by granting loans, offering financing projects/programs, as well as in subsidized lending to agricultural producers. The purpose of the research is to highlight the peculiarities of crediting and financing of the agricultural sector. The methods applied in the research process are: dynamic analysis, comparison, deduction. The results of the research reflect the crediting of the agricultural sector in the period 2017-2021, as well as the involvement of commercial banks in financing and subsidizing activities.