Russia: financing problems to complicate the spring planting campaign
Financing problems to complicate the spring planting campaign and make the general grains output dependent on the weather conditions, declared the President of the Russian Grain Union, Arkadiy Zlochevskiy on April 7, 2014.
The President stated the financing problem appeared on the agenda. The technological parameters of the spring planting campaign are poor. The necessary raw-material purchasing is delayed. A.Zlochevskiy mentioned that the rates of fertilization, technical provision and seeds, being the basis of harvest, are low.
At the same time, the grains harvest in Russia in the current year to total nearly 90 mln tonnes owing the favorable weather conditions.
A.Zlochevskiy added that the one of the financing problems is that the funds do not reach the agricultural producers due to the remaining on the regional accounts.
The second reason is the bank financing issue. According to A.Zlochevskiy, there is the problem with the credit expansion, due to the recent events in the country. Besides in 2010 the credits were extended for three years due to the drought. Now it is time to redeem a loan but nobody is in a point of its extension. Until the obligations are repaid the banks no to provide new loans.
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