On May 28, Agroinvestor magazine held its second annual business breakfast for agricultural and food companies. This time the main theme for discussion was, "How is it Possible to Finance Business During the Crisis?" The VSK insurance company acted as general partner to the event, and the Investment Corporation served as a partner.
The participants and speakers at the breakfast included the financial and general directors of the largest Russian agricultural holding companies, as well as directors and key specialists from the Agriculture Ministry, Economic Development and Trade Ministry, Vnesheconombank, Sberbank and Russian Agricultural Bank.
The assembled specialists reported that agribusiness was one of the first sectors of the real economy to be affected by the crisis. The 10 percent and higher increase in lending rates, the near full stop to credit for the agrarian sector even while businesses retained their the obligation to service existing debt and to simultaneously invest in development led to a series of technical and real defaults of Russian agribusinesses. However, tools for business investment do exist that are currently accessible to market players. They include state-backed credit, attracting strategic investors (including investment funds) and state-private partnerships.
The magazine's next event - the Sixth Annual Agroholding Russia Conference - will take place on December 4.