Assessment of the activities of the agricultural credit corporations as a development institution

Abstract

In the article, based on the public reporting materials of JSC «Agrarian Credit Corporation» for the period from 2017 to 2021, its activities as a development institution that finances agricultural entities are analyzed. A sufficiently detailed assessment of the financial condition of the Corporation itself was carried out. Financial and operational indicators are studied in dynamics, changes in the assets, liabilities and capital of the corporation, as well as the final financial results of the Corporation’s activities are shown. The changes in income and expenses of the corporation were studied and assessed, which made it possible to substantiate the level of efficiency of its activities. As a result, the indicators of the effectiveness of the use of assets ROA and the indicator of the efficiency of the use of equity ROE were calculated, which are characterized by high values. It was noted that in order to expand the coverage of agribusiness entities with credit funds, the Agrarian Credit Corporation uses various financial instruments: direct lending and funding of financial institutions. The volumes of borrowings are considered in dynamics and their importance in increasing the amount of financing of agricultural producers in the industry is shown. Such borrowing made it possible to identify the main creditor of the Corporation, which annually provides loans for lending to spring field and harvesting work through the Ministry of Finance of the Republic of Kazakhstan and loans from other financial institutions for subsequent lending to agribusiness entities. This indicates that this corporation will continue to act as the main financial institution for the development of agriculture.