RAZVOJNE BANKE KAO OSLONAC U KREDITIRANJU POLJOPRIVREDE
DEVELOPMENT BANKS AS A MAINSTAY IN AGRICULTURE LENDING

Summary/Abstract: Regardless noticeably ignoring reality agriculture is a strategic activity for the Serbian economy, and it is the only economic sector in which we have comparative advantages in relation to the environment. Due to its specificity, lending to agriculture can’t be left to the free commercial banking. Commercial banking and leasing companies as well as subsidiary companies of banks, have not proved to be an interested party in the development of agricultural credit, given its risk and because of bad experiences with placements that were for agriculture. Lending to agriculture must have the support of your government development banks will operate according to the principles of profitable financial institutions rather than by the principle of spillover missed banking profits in the real sector. The basic problem of development banks are inexpensive sources of funds to the commercial market can’t provide. As a primary source of funds that will later be transformed into development loans, are recognized of public enterprises companies at all levels of government. In this context, the development banks would be the only intermediaries in the flow of state funds from public enterprises by the borrowers.

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