Preferential credits in countries in transition from the perspective of a commercial bank

The elements which play a role in agricultural financing, and the type of p olicy instruments potentially available, are considered, as well as the rol e of the State. A Government or State does not have the capabilities, or th e structure, for efficient and effective credit delivery but, without an ef fective rural banking system, it is not possible develop an efficient rural economy. The main objective for Government in transition economies should be to improve access to financial services for rural entrepreneurs. Establi shment of an adequate legal and policy environment is important not least t o enable acceptance of collateral/securities by financial intermediaries. R eliability of the State in terms of consistency and transparency, with resp ect to policy actions, new legislation, etc., is also important. No one ins trument or one policy action will substantially improve access to financial services for agriculture in transition economies. There is a need for an i ntegrated approach and an action plan based on the greatest deficiencies.