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Ukraine's agricultural sector: the challenge is to survive crisis and to retain companies' creditworthiness

01.06.2009


Pre-crisis trends in agricultural sector

The wealth of Ukraine's population, which has increased over recent years, has fueled demand for agriculture produce and thus prompted rise in prices. Many started boosting production striving for strengthening their market standing. Opting for aggressive strategies prompted active employement of borrowed funds. At that, making investment decisions was based upon ongoing situation in the market, putting aside risks inherent in agricultural sector. The agricultural companies were developing at the expense of bank loans, bond issueances and financial lease.

 

The article is given in Russian

 

Yekaterina Vasina, source: «КР Монитор», 6 (22)