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Money and credit - Ivanov VM

18.3. The role of credit in the provision of scientific and technical progress, saving distribution costs, in the social sphere

An important role of credit to play in providing NTP. His influence on the improvement of technical and technological level of the reproduction process is carried out primarily by indirect means:.. By ensuring the continuity of production, stimulation of increase in output, etc. At the same time credit is a factor that provides STP, as it is an important source of capital investments. However, the effectiveness of leverage of NTP is defined lending policy pursued. To implement the role of credit in this area is necessary to carry out the priority lending to knowledge-based industries, conversion programs; targeted lending to the technical improvement of production, the introduction of new kinds of products, products that are in demand or the population are of great economic importance; the development of innovative banks that specialize in lending to new technical and technological projects, and so on. d. In an inflationary environment, credit opportunities to promote STP dramatically reduced as narrow boundaries of the introduction of new technology due to its continuous significant cost, and possible terms of the loan much less cost payback period.

One aspect of the credit impact on economic processes is its role in the economy of distribution costs. The loan helps to reduce the cost of money turnover organization throughout society, reduces the cost of the entire system of monetary circulation. Implemented this role of credit in the first place in the course of the performance of the functions of replacement cash credit operations. The development of non-cash payments Cash Advance helps reduce monetary-tion turnover, replacing the banknotes credit instruments circulation, serving cashless transactions. This significantly reduces the costs of treatment by reducing the costs of producing, recording and storage of banknotes.

cost savings are also achieved by accelerating treatment. Repeated use of available funds based on credit redistribution increases the rate of turnover of money that can satisfy the needs of the reproduction process at relatively lower money supply. Moreover, a loan treatment accelerates the individual phases and, accordingly, the whole reproduction process, which affects the cost reduction. Finally, the use of credit reduces the costs of circulation enterprises by reducing their reserve funds in cash. With the help of the loan is achieved by the most rational structure of sources of working capital, enhance production efficiency.

The role of credit in the social sphere, social potential which is revealed in many aspects of its operation. In fact, all loans have a social orientation, because based on them increase the efficiency of social reproduction and thus better meet the needs of society, increasing the standard of living. As one of the factors the introduction of advanced equipment and technology, credit helps to reduce heavy and unskilled labor, the growth of labor productivity and income of workers.

Credit improves the consumer market, in accordance with social policy priorities. In this area, the role of large loans, directed to the sector of production of consumer goods trade, catering and so on. N., On preferential crediting of agriculture. It is of great social importance is consumer credit, promoting more rapid growth of the real living standards.

With the development of the process of integration of the Ukrainian economy into the global economy increases the role of credit in foreign trade turnover. Credit creates favorable conditions for the development of international economic relations, allows the import of goods in the passive trade balance, helps to increase the export of goods, an important factor in the development of the international division of labor.