ANALYSIS OF THE STATE OF BANK FINANCING IN AGRICULTURAL PRODUCTION IN CENTRAL ASIA

Abstract

The article describes the process of using and the effectiveness of bank loans to the agricultural sector of Central Asia. A consistent analysis of the system of bank loans and the process of state incentives for financial and credit organizations completing financing in the agricultural sector is also presented.

An effective economic system of foreign agriculture has developed for decades. Today, the process of continuous expansion of farms continues due to the fragmentation and destruction of large farms. The production of large agricultural products in small farms, of course, exceeds - this is one of the basic laws of the economy. Large farms are cost effective and use modern technology effectively.

In some foreign literature, agricultural credit is an influential factor in the development of the agricultural sector. Most of these loans are large and long-term.

Many state programs of financial support for the agricultural sector are implemented in the form of loans. Lending is seen as a factor in stimulating private investment of an agricultural producer and increasing its activity.

Recently, more and more attention has been paid to agricultural loans, namely in industrialized countries. In almost most developed countries, there are special rules for lending to an agricultural producer. Namely, credit organizations mainly rely on special state financial and credit institutions.

The study proved that among Central Asian countries, the experience of Uzbekistan and Kazakhstan in using bank loans for the agricultural sector is in line with other Central Asian countries.

Thus, the foreign experience of the agro-industrial complex testifies to the constant concern of state authorities to create economic and material and technical conditions for the production of agricultural products necessary for the country's population.