THE IMPORTANCE OF AGRICULTURAL AND THE RURAL BANK IN FINANCING AGRICULTURAL DEVELOPMENT EXPENDITURE IN LIBYA

doi:10.21608/fjard.2013.194635

THE IMPORTANCE OF AGRICULTURAL AND THE RURAL BANK IN FINANCING AGRICULTURAL DEVELOPMENT EXPENDITURE IN LIBYA

Document Type : Research articles.

10.21608/fjard.2013.194635

Abstract

The research problem is confined to decline in the contribution of
agricultural resources generally available, and capitalist resources particularly
to finance of agricultural economic development programs under the low
proportion of agricultural investment expenditure of the total investment
expenditure, which decreased from about 19% during the period (1973-1985)
to about 11.2 % during the period (1986-2009), which impact negatively on
the performance of the agricultural sector, and then low rates of agricultural
development in Libya, which required him directing economic policies
towards increasing investments of the agricultural sector to achieve the
objectives of the desired development, achieve the highest rate of selfsufficiency possible strategic commodities produced by this sector, and it
became clear the importance of each of the Agricultural Bank and Rural Bank
in lending to agricultural producers loans agricultural accessible and special
categories of low-income, which is a real addition to financial institutions and
social Libyan interested in assisted groups low-income so that they can
develop their performance and active participation in various economic activities, helping them to improve their income and raise their standard of
living, and then trend Libyan community to the economic development
prospects1
The research aims in general to highlight the importance of the role of
each of the Agricultural Bank and the Libyan Rural Bank in financing
agricultural economic development programs, social, even can raise the level
of living of employees in the agricultural sector1
A study the evolution of the value of short-term agricultural loans it
took years growing trend statistically significantly increased by increasing an
annual rate of about 568.1 million dinars, representing about 10.3% of the
annual average of such loans of about 5508 million dinars during the period of
the policy of economic development plans (1973-1985). It also took those
loans-year declining trend statistically significantly by decreasing the annual
rate of about 822.5 million dinars by decreasing amounted to approximately
9.3% of the total annual average of short-term agricultural loans of about 8879
million dinars during the second period (1986 - 2009). It could be argued that
the period of economic transformation has had a negative impact on the values
of short-term agricultural loans. This can be explained that most of the farmers
turned to borrow medium-term agricultural loans and long-term with the
highest value to take advantage of them to increase their incomes more than
what they get from the short-term agricultural loans1
As shown by the study of the evolution of the value of medium-term
agricultural loans that there is a continuous increase significantly statistically
for such loans during the two periods of the study (1973 - 1985), (1986 -
2009), increased from about 393.9 million dinars annually representing
approximately 10.40% of the annual average for those loans of about 3802
million dinars during the first period to about 1.4134 billion dinars annually
representing about 17.4% of the annual average of such loans of about 8097
million dinars during the second period, which demonstrates the positive
impact of the policy of economic transformation on the evolution of the total
medium-term agricultural loans1
As shown by the study of the evolution of the value of long term
agricultural loans that those loans took a decreasing trend by decreasing
annual rate of about 195.9 million dinars by decreasing amounted to
approximately 11% of the annual average of such loans of about 1769 million
dinars during the first period (1973 - 1985), but the those long-term
agricultural loans took a general trend growing significantly statistically by
growing an annual rate of about 1.3039 billion dinars, representing
approximately 16.57% of the annual average of such loans of about 7865
million dinars during the second period, which illustrates the positive impact
of the economic transformation on the value of agricultural loans long-term
granted Agricultural Bank because the Libyan government has pumped funds
for the Agricultural Bank to offset part of the years of economic and political
blockade imposed on Libya and seek to achieve agricultural development
through the implementation of agricultural projects, long-term funds that have
been borrowed from the Agricultural Bank1
With regard to knowledge of the effects of these policies on the
development of the total agricultural loans granted by the Agricultural Bank