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However, the difficulty is similar to that with other 

 technical assistance. For a real solution, technical 

 assistance must be linked to capital, in this case 

 loanable funds. But there is a dramatic difference in 

 the amount of money needed for credit as opposed to that 

 required to make an impact as seed capital for other 

 purposes. The need for credit is at least an order of 

 magnitude larger than the need for seed capital. 



The probability that the U.S. will be willing to donate 

 and monetize enough agricultural commodities to seriously 

 address the NIS agricultural credit problem is low. 

 However, in the unlikely event that this should occur, 

 the following are several principles that would be 

 critical in a sound NIS agricultural credit program: 



Agricultural loans should be made only when secured 

 by foreclosable first mortgages on property. 



Interest rates must not be fixed, but linked to 

 actual inflation rates occurring during the life of 

 loans. 



- Because of the steady erosion of real value in ruble 

 accounts, donated commodities should not be 

 converted into rubles until the money can be loaned. 



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