The impact of preferential lending programs on the dynamics of investment capital in the agricultural sector of the economy

Abstract

The purpose of the study is to assess the impact of preferential lending programs on the formation of investment capital in Ukraine's agricultural sector by combining an analysis of financial instruments of state support with the dynamics and structure of capital investments. The study applies methods of systematization and classification to group support programs according to their mechanisms of influence on investment capital; statistical and comparative analysis to examine the dynamics of investments and their sources of financing; structural analysis to determine the role of specific financial instruments; an analytical approach to assess the relationship between lending and investment activity; and generalization to formulate comprehensive conclusions. Results. The study systematizes the instruments of state and donor support for the agricultural sector by their mechanisms of influence on investment capital and identifies tools with direct and indirect impacts. Structural features of capital investment formation are revealed, including the dominance of internal financing and the limited role of external financing. The analysis of preferential lending programs shows that their primary focus is on ensuring liquidity and supporting current business operations, while the investment component remains limited. A gap between the scale of financial support and the actual dynamics of investment capital is identified, driven by the structure of financial resource utilization. At the same time, instruments aimed at renewing fixed assets demonstrate a more pronounced investment effect. Conclusions. The impact of preferential lending on the investment capital of the agricultural sector is predominantly indirect, manifested in the stabilization of enterprises' financial condition, while the formation of new capital is ensured by a limited number of instruments. The structure of financial support does not ensure sufficient transformation of credit resources into capital investments, necessitating strengthening direct investment instruments and improving the efficiency of financial resource utilization.