Current Agricultural Situation in Russia Hearings Before the Subcommittee On F

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Current Agricultural Situation in Russia Hearings Before the Subcommittee On F
United States Congress House Committee On Agric
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The power to buy and sell is severely restricted and the subject of continuing debate. The power to rent, mortgage and foreclose has not yet been seriously addressed.
However, it should be noted that many agreements are made between private parties on all such matters without the benefit of laws. The hope is that some day law will catch up with reality. Obviously risks are high.
Banks And Credit The almost total absence of a "real" system of banking and credit poses serious problenis. Typically
..., the new private farmer has only one major asset, his land. He must borrow for buildings, equipment, livestock, and operating capital. Only a fortunate few can obtain the necessary credit. There are a number of practical obstacles to correcting this situation. They include the following: 143 As mentioned earlier, there are no laws covering mortgages and foreclosures.
The typical role of Soviet banks has been to dispense government money and credit to state enterprises. These banks have little if any experience assessing risks and managing true loans in a market economy.


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