Year of publication 2003

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Place of publication Rome, Italy ;

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Product type Book (stand-alone)

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Series title FAO Agricultural Economics Working Paper

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Edition 1

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Synopsis (short abstract) Three institutional pillars form the foundations of sustainable financial markets: The existence of a pool of profitable and diverse rural clients with the ability to service loans, well-run financial institutions which are financially self supporting and an enabling policy environment. Ukraine has not been successful in developing robust rural financial markets because it has consistently undermined these three institutional pillars through soft government-provided or government-subsidized dir ected credits that have had an overwhelming role in rural policies in the post-Soviet period. Instead of a pool of profitable clients, the Ukrainian countryside is dominated by unprofitable farm enterprises which employ the overwhelming majority of rural residents. Second, financial institutions serving agricultural enterprises in Ukraine have largely distributed government directed soft credit at unsustainable interest rates to financially troubled farms in order to cover losses. Third, ther e has been abiding opposition to policies to ensure clear property rights, enforceable contracts and transparent farm restructuring and privatization, because such policies would imply the dissolution of large scale farms

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Language Trilingual

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