Factors that influence bank loans for agriculture in Romania

Abstract

Agriculture is a determining factor regarding the development of the Romanian economy, noting its importance for population consumption and as a supplier of raw materials for the relaunch of other industries. Agricultural financing consists of credits granted to natural or legal persons for developing agricultural activities, expanding agricultural holdings, and commercializing agricultural production. The objective of this research is the statistical analysis of the determining factors in granting loans to Romanian farms. The study is based on the content analysis of the accounting reports of the 45 Romanian farms included in the research sample, based on which the profile of the farmer from the selected counties (Alba, Cluj, Mures, Sibiu, Dambovita and Prahova) is outlined. The obtained results highlight the fact that factors such as the requested amount (SUSO) are directly influenced by the worked area (TELU), by the turnover (CIAF), R = 0.6228, but also by the total value of the assets (TOTAL) R = 0.454. At the opposite pole, there is a weak correlation between SUSO and current liquidity (LICU), R = 0.2754, and the value of recorded expenses (CHEL), R = 0.3102. Implementing a credit policy that facilitates access to financing sources would support farms in modernization and development, increasing their competitiveness and general viability.