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Sources of Funds for Agricultural Lending

This book describes the different sources of funds which financial institutions use to make loans: government budget funds, donor funds, central bank credit lines, interbank loans, savings, debt and money market instruments and equity. It gives an overview of the current liability composition of rural financial institutions world wide and recent trends and shifts, together with a qualitative analysis of the advantages and disadvantages of each source of funds from the financial institution’s point of view.

Based on this analysis recommendations are made regarding the most appropriate combination of funds to secure financial sustainability and independence whilst fulfilling the general goal of providing the necessary inputs for agricultural investments.

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