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Business credit resources practically available

Кредитные ресурсы бизнесу практически не доступны

Voevodin, T. V. — the owner and head of the company “WHITE CAT”, specializing in the sale of products for green cleaning. Also owns agribusiness in Salsk district of Rostov region. Also engaged in trade of grain within the country.


“In 2004, earning money on the trade, our family bought two former state farm in the Rostov region, and we began, as they could, to raise agriculture. To raise sometimes in the most literal sense: after the dissolution of the collective farms-state farms management came not just in the decline, and in the most that eat physical devastation. Currently we have two farms grain orientation with 13 thousand hectares of arable land and grain trading company in the city of Azov, which ships grain through the port of Azov. Our farm (LLC them. Frunze) is in second place in Salsk area performance, which was held by the district fall Harvest Festival. I mean that we are not a struggling economy, it is quite decent, and our problems are not from the business ineptitude. They are fairly typical and generated by the General situation.

The main problem is the problem of business loans: business credit resources practically available.Banks, as you know, the boss starts with all the difficulties and crises to save first: they are, as we learn from an advanced economic science, the essence of the circulatory system of the economy, without them we all die. However, without food we will die much earlier, but we talked about banks.

What is the result? And that’s what. The middle-size banks do not have loose cash. It is not even about the interest on the loan, but simply no money. Banks. For example, we entered into an agreement with the Bank “Millenium” on 30 million rbl. a month the Bank (!!!) scraped together only three million, the contract was canceled. Major sources of funding remain Sberbank and Rosselkhozbank. The villagers have a special tooth for “Rosselkhozbank” is the suspect for his name. Supposed to help men and … the same name. It feels betrayal and, perhaps, sophisticated mockery. When the head of “Russian agricultural Bank” appears in the TV with glib speeches about aid and subsidies – Cossacks nefiguralno spit at the screen: words, even non-printable, they are not. “Sberbank” does not cause such rough emotions, well, kind of like “savings” and “savings” that can give. But it does, in fact, is no different. Both lend at 18% and above. One neighbouring farm has received a loan at 29%: it seemed problematic to the lender, and the Bank decided therefore to reduce their risks.

In addition to higher interest rates, all loans must be secured by pledges of weight in the amount of 150%, it means that you have to pledge property to the value of half credit. Don’t repay the loan — you give the property to the Bank. Well, it is normal practice, the farmers, thank God, a no property there, land in the first place. But banks is not enough. They require cross-guarantees from all companies owned by the selected owner. Well, personally, we-that can meet this requirement, but if the owner only the agricultural business? If he doesn’t have any other companies? Then how?

But that’s not all. Lenders require personal guarantee of the business owner. And we do this foolish requirement. However it is wrongful. It directly contradicts the very essence of limited liability. The owner of the company with limited liability liable for its obligations (or rather, not he carries, and his company as a legal person) only within the company property and not the property owner. This exactly is the meaning of the design of limited liability, and knows that each student-troechnik of legal specialty. Know this and Bank chiefs, but … it’s convenient for them. More reliable. Then they require quarterly reporting of all financial activities and not just control of target use of the credit.

In principle, villagers can get a subsidy on the interest in the form of return. But it is impossible: money from district officials no. Likewise, it is impossible to get a VAT refund when exporting products: not give. Or pay a giant rollback. Terms of processing the loan from start to pick — up- 4-8 months. Do not want — do not take! A long time ago, when I worked in an Italian company, I was taught the capitalist business wisdom: banks give loans to those who can do without them. The easier it can do — the more readily give. How often I think of this wisdom!

Can I work without credit? Can. In crop profitability allows it. But there are two limitations. First. This can only quite a large farm, better a holding, where in the case of choose the members of his management may each other to lend money under reasonable percent. A small farm cannot. In principle. The smaller the farm the more susceptible it is tied to the loan. I have, by the way, a passing question: in this situation why the state continues to declare farming a General line of development? Or up there, these two circumstances does not equate to consciousness? Or there they are for various departments — plantation farming and credit policy? Maybe there is no policy… in fact, empirical evidence suggests that farmers do not forecast in our region. It is unlikely that we is such a wonderful exception. Closed farms are sold to large farms… the Bulk of production to create large farms, former state farms.

The second restriction when the credit slowdown. Don’t even slow down, just slow development. Available credit would develop much faster. In many cases, even a decent economy, essentially gathered in one place, and could develop, to grow, to improve. It needs to do, speaking in the old-fashioned investment. Today, with the current situation, the money to do not. We bought out two tractors and two combines (Rostselmash), the nation rejoices, as the first five year plan: live, work, or even be! Many other farms have new equipment don’t see: not enough money. A new tractor was given to the best shots — all the Soviet traditions. And people like it. Wife the second best tractor driver came to the Director — whether to request, or to make trouble, that her husband was given a new tractor. When I learned that tractors two — was very pleased.

Anyway, we live, earn, even slowly developing on its own basis. Nothing tragic happens: you can work and so. But in this manner breakthrough development in the industry as a whole can not be. I don’t know how imagine business men of the mind and of the Council, but my collective point of view — is as follows:. In General, there is a sense that the political leadership is simply fenced off from reality, doesn’t want her to know. Because if you knew — so you have to react. But how? Do sometimes very old men: they try not to notice unpleasant and upsetting, because what kind of upset, and the action is nothing there.

That could help the agricultural industry? First of all, it is necessary to lead at the state level, which is not in sight. There are sporadic initiatives, which mostly remain without consequences. A striking example — the promised last fall some mysterious logistics centers. Then was sensible in the basis of the idea is to limit the number of cattle on private farm that business out of the shadows, but it died without being born. A clear agricultural policy that has a clear purpose, well-defined objectives and lasting in time, we do not observe.

What you need for development? First of all — money. Well-known economist Sergei Glazyev proposes to print not less than 1.5 trillion. rubles a year for five years to remove the credit hunger of the enterprises. Our national economy is chronically underfunded. In Russia the coefficient of monetization of the economy (the ratio of money to GDP) — 47% of the world average level of 125%. I’m afraid to disperse inflation. As a result, the fight against inflation leads to suppression of any economic activity.

To understand our superiors. At a position that is available today, with the life and business skills that have developed over the years of glamour and progress, ALL additional printed money will be immediately exchanged into dollars and exported abroad. Would be mad inflation. About this told Prime Minister Dmitry Medvedev in one of his speeches.

What can you do? Apparently, you need special investment money that cannot be cashed and spent on consumption, but with the help of which it would be possible to develop industry and agriculture. The money was in the USSR (so-called cashless transactions), and they played a very important role in industrialization. By the way, the collapse of the Soviet economy began with that began to mix the two circuits of monetary circulation. Historians of Economics say that the money was a special investment not only in the Soviet Union and in Nazi Germany, there too they provide the economic breakthrough. It seems that such measures were in the U.S. in the era of Roosevelt, and from those times there was the division between commercial and investment banks.

The second thing you must do is to stop the uncontrolled outflow of money from the country. Should be a solid control of transboundary movement of capital. Simply put, the ban on free cross-border movement of capital. Any transfer must be justified. In General, a reasonable fraction of mercantilism would have been cool. Even the unrighteous acquired money, they stay in the country, would work on its national economy, rather than maintaining afloat “world imperialism”, as expressed in the old days. If the money cannot be cashed, and cash (imagine that still managed) — cannot be shipped — they will be invested in development. For the implementation of this measure requires a single state Bank is a myriad of washout offices.

To develop the necessary hard and flexible at the same time protectionism. If such goods produced in the country, to close its importation from abroad. Protectionism resorted to every developing economy; Engels called protectionism “fabrication factory”, weakening external competition, it intensifies competition within the country, leading to the education of an entrepreneurial class. In the agricultural sector in contraangle has played a positive role to stimulate the development. However, farmers are afraid to build long term plans: what if the sanctions will be removed, and will come back foreign goods?

I think the state should prohibit all financial-speculation — making money from money, i.e. the stock exchange, and all kinds of financial speculation. The economy can grow, people, entrepreneurs, including the need to push in real productive work. Banking and financial activities must be ancillary to and serving the national economy and, as happened today. Today “vengeance is the tail wagging the dog”: the real economy, economic activity — the construction of houses and roads, manufacturing cars, growing grain and potatoes — today it all seems derivative, and may be, just a vague shadow of the home economy is virtual.

The main economy is banks, securities, stock exchange, rating agencies. Actually, there is nothing real, ontological, but they are now at the center of life, they rule the world. To them ordered to be treated with religious reverence, in a crisis first of all rush to save the banks, and the rest, so to speak, subjects of economic activity — not important and not interesting. Doubt of the Supreme value of this escheated virtual economy is a doubt of the Shrine, almost a blasphemy, worse than blasphemy. Money fetishism, which once said Marx, today brought to the last line: the real economy before our eyes and becomes almost miserable Cinderella or even unwelcome appendage of a virtual system that can do everything. It seems that here-here will fall off this unwelcome appendage, and we will soar. We, like the birds of heaven, tweet in the virtual, and eat — ratings, derivatives, well, maybe, what new securities will invent and will be served a snack. In General, instead of lunch we will play “Forex”.

As a result, the economy as the reality of life is degraded, and the energy of human labor and ingenuity is invested in the monetary sphere, in virtual — zilch. Today, the “pivot” are not in industry, not in agriculture, not in science — they work in banks, financial institutions, in consulting, in investment companies and the rating agencies. This just should not be, if to work on peasant common sense. People will always try where working conditions are easier and where one unit of effort, the earnings above. Now we need to restrict such opportunities and to get people to redirect their activity in industry and agriculture.

In short, for development need to take well-known, but very difficult steps:

· Ban cross-border movement of capital

· Special investment money that cannot be cashed

· The availability of credit for economic operators

· A clear and long-term industrial and agricultural policy

· National economic plan as the highest form of politics

· Protectionism as a means of rapid development of the domestic market and promoting domestic competition

All the proposed measures are well known. For example, the protectionism wrote Friedrich list in his book “national system of political economy” in the first half of the nineteenth century. It is also important to note that you need to implement everything and at the same time. Partial measures can only lead to failure. However, the implementation of these measures faces the selfish interests of those external and internal forces, which is beneficial to Russia still lived under the rules of the Washington consensus. Modern economic block of the Government has a policy precluding the development of national economy”.

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