21. Analysis of the financial security performed by private commercial banks in the investment processes in Bulgarian agriculture

Author: Vesela Uzunova-Kostova, Vasko Koprivlenski

DOI: n/a


The purpose of the article is to analyze the activities of private commercial banks as a source of funds for investment in agriculture, in terms of the equity participation, interest rates, repayment, the maximum amount of the loan and collateral and on that basis to propose specific approaches and funding models that will enhance and stimulate the investment activity in the sector. In this connection, a survey of 63 agricultural cooperatives, 45 farms and 95 farmers from the region of Plovdiv, Stara Zagora, Yambol, Bourgas and Haskovo was carried out. The following features were studied: dynamics of bank loans to agriculture, forestry and fisheries, their distribution by size of holdings and the total number of loans for the period 2005-2009. Recommendations were made referring to the diversification of the investment credit services, wider diversification of loan portfolios and provision of an individual approach to customers based on their needs in order to enhance the investment activity in the agricultural sector.