Aspects of rural finance

Abstract

The main objective of microcrediting in rural areas is to alleviate rural poverty in order to finance the farm and investments in non farm activities, the raise of the rural incomes, raise of the economic activity efficiency in rural areas. All these are leading to rural economic growth and raising the rural employment by bussineses sustained with investment capital b the financial sector whose presence is becoming more pregnant. Another problem is the lack of finance on long term and the lack of the financing capacity of the microfinance institutions. The authorities must to develop an efficient system of warrant receipts, to sthrenght the outreach, the efficency and sustenability of the non financial institutions and helping the small entrepreneurs and smll frmers in loan application and business plans. There is neccessary the strenghting of the financial institution capabilities to serve the mall clients, the expanding of the network in remote rural areas, financing in order to rise the rural sustainable activities, but also the growth of the efficiency and the atractiviness for foreign investors for new opportunities for all the financial institutions, and to assure the finance for economic activities on long term in competitive terms.