scholarly journals WORLD MARKET OF PROJECT FINANCING: INDUSTRIAL STRUCTURE

2021 ◽  
Vol 119 (6) ◽  
pp. 119-130
Author(s):  
HANECHKO Iryna
Keyword(s):  
Large Scale ◽  
Industrial Structure ◽  
Cash Flows ◽  
World Market ◽  
Global Market ◽  
Bank Loans ◽  
Project Financing ◽  
Investment Activity ◽  
Investment Projects ◽  
Global Industry

Background. The domestic economy remains systemically underfunded due to lack of domestic financial resources and low investment attractiveness for foreign investors. The deepening of this problem is also caused by the situation with COVID-19, which has led to a decrease in global cash flows in the world. Obtaining cross-border investment flows in various sectors of the economy is associated with project financing, the development of co-financing and the use of PPPs. There is a question of research of modern tendencies of development of project financing which change according to present challenges, for the purpose of implementation of experience of foreign countries in the Ukrainian practice of development of investment activity. Analysis of recent research and publications has shown that in the context of abrupt changes, challenges and crises, leading to reduction oflong-term investments, the issue of using large-scale project financing to guarantee future profits (project financing) to develop priority sectors of the economy and individual regions of the country remains relevant. The aim of the work is to study the global industry trends in the development of project financing, taking into account the new socio-economic realities and justification of the feasibility of using world experience in Ukrainian practice. Materials and methods. The research methodology is based on a system of general scientific and special methods, in particular: abstract-logical, analysis, synthesis, comparison, grouping, generalization, graphical method, statistical methods for assessing the dynamics and structure. Legislative documents, scientific works of domestic and foreign scientists, statistical information became the information base of this research. Results. The modern tendencies of the global market of project financing, dynamics of its volumes and branch structure are investigated. The directions of project financing by the main sources are analyzed: bank loans and bond loans. The expediency of using international experience in the implementation of large-scale investment projects in various sectors of the economy of Ukraine using schemes and methods of project financing is substantiated. Conclusion. The introduction of experience in the implementation of investment projects using project financing schemes in Ukraine should contribute to the formation of demand for long-term investments, including foreign ones. This practice of project implementation allows to modernize the economy, increase the potential of regional development and integrate into global value chains.

scholarly journals BANK PROJECT FINANCING IN THE CONDITIONS OF MACROECONOMIC INSTABILITY IN UKRAINE

2020 ◽  
pp. 126-138
Author(s):  
Nazar DEMCHYSHAK ◽  
Oksana SHCHUREVYCH ◽  
Olha HEORHIIEVSKA
Keyword(s):  
Large Scale ◽  
Rapid Development ◽  
Market Demand ◽  
Project Financing ◽  
Short Term ◽  
Investment Projects ◽  
Long Period ◽  
The World ◽  
Banking Institutions ◽  
Further Development

Introduction. Banking project investments as one of the important factors of economic development of any country should be investigated. Despite the relative novelty of project financing in Ukraine, it should be studied because this process has been widely used for a long period in the world, which is confirmed by the implementation of large-scale projects. The purpose of the article is the implementation of a comparative analysis of bank project financing in Ukraine and the world during the pre-crisis macroeconomic situation, as well as the development of appropriate proposals for further development of the mentioned investments. Results. It substantiated the promotion project financing would be impossible in the conditions of the predominance of the short-term loans and the unwillingness of banking institutions to participate in the financing of infrastructure and investment projects. The factors hindering the development of bank project financing in Ukraine were determined. Significant potential for the rapid development of project financing has been fully confirmed by the corresponding market demand. However, for the development of project financing in Ukraine it is necessary to realistically and in detail assess the viability and profitability of projects. Also, the most effective leverage can and should be appropriate changes in the legislation that might give the guarantee bilateral protection of investors and creditors, as well as describe the approaches to the formation of a simplified mechanism for this type of financing.

scholarly journals Formation of institutional model of project financing in Ukraine

2021 ◽  
pp. 155-161
Author(s):  
M.I Zvieriakov ◽  
D.V Zavadska
Keyword(s):  
Large Scale ◽  
Institutional Environment ◽  
Financial Resources ◽  
Innovative Development ◽  
Project Financing ◽  
Normative Documents ◽  
Investment Projects ◽  
Financing Mechanism ◽  
And Performance

Purpose. Substantiation of the formation of the mechanism of project financing for solving issues of financial maintenance of infrastructural projects of innovative development in Ukraine. Methodology. The information base of the research is legislative and normative documents and results of scientific achievements of leading foreign and domestic scientists. The following methods, such as analysis and synthesis; comparison and systematization; observation; graphic, tabular; logical generalization are used. Findings. According to the results of the research, it is proved that to ensure sustainable economic growth and diversification of Ukraines economy, the importance of institutions for development and use of such a multi-instrumental form of reproduction of real investments as project financing, becomes actual. Based on the system approach, the features, elemental composition and subsystems of the project financing mechanism are determined. It is established that the current legislative basis for the formation of the project financing mechanism in Ukraine is fragmentary and needs further development. It is proved that the implementation of measures of state stimulation of the processes of financing the innovative development of Ukraines economy will be facilitated by the adoption of the Laws of Ukraine On The Bank of Development, On Syndicated Loan and the proposals for the formation of project financing developed in the research. Originality. For the first time, a comprehensive theoretical approach to the formation of the project financing mechanism in Ukraine has been implemented. The need is substantiated for highlighting such subsystems of the mechanism as providing subsystem (institutional environment of which is legislative support and regulatory bodies), transforming subsystem (financial instruments and participants of which are the Bank of Development, international financial organizations, banks, institutional investors, development institutions, project sponsors) and performance subsystem (financial resources in the required amounts, currencies and terms). The effective operation of the proposed mechanism helps to overcome the shortage of long-term financial resources needed for lending support of innovative enterprises that implement large-scale and capital-intensive investment projects and programs of national importance. Practical value. Introduction of the mechanism of implementation of the program for supporting the project financing development will allow accumulating considerable amounts of financial resources from various sources on a long-term target basis; increasing the level of investment and the number of innovative projects; reducing the total cost of funding and risks through their redistribution among participants of the project.

scholarly journals ANALYSIS AND SYNTHESIS OF EXPERIENCE OF PROJECT FINANCING OF INDUSTRIAL ENTERPRISES

2017 ◽  
pp. 120-133
Author(s):  
Irina Aleksandrovna Trushina
Keyword(s):  
Large Scale ◽  
Oil And Gas ◽  
Industrial Sector ◽  
Investment Climate ◽  
Project Financing ◽  
Basic Principles ◽  
Investment Projects ◽  
Industrial Enterprises ◽  
New Directions ◽  
Analysis And Synthesis

The article describes specific features of project financing in the Russian Federation. It is stated that in Russia in recent years new investment projects have been launched, which are expected to be implemented using the project financing method, which indicates a favorable investment climate and the state's readiness to develop and improve this mechanism. Most of the projects are related to the industrial sector; in this regard, the analysis of projects and a synthesis of experience in the application of project financing have been conducted. Projects that were not always successful were analyzed, as well as an example of a project implemented with the assumption of design errors, in which the basic principles of project financing were not applied, but the result of its functioning turned out to be positive. According to the results of the analysis, the author grouped the general trends of project implementation, formulated the conditions that confirm the use of project financing, and identified key errors in the implementation of large-scale investment projects involving industrial enterprises. Priority sectors of the economy are defined, in which large-scale investment projects are most often developed and implemented (oil and gas extraction, processing and transportation). A review of Russian experience of project financing made it possible to understand the level of prevalence of this method and the effectiveness of its use, as well as to identify the main factors constraining and stimulating the use of project financing by industrial enterprises. Taking into account these factors will contribute to the formation of new directions and the development of methods for stimulating project financing for their successful use in the implementation of large-scale investment projects.

Countercyclical Financing as a Tool for Facilitating Investment Activity in Russia: An Overview of Approaches

2021 ◽  
Vol 27 (12) ◽  
pp. 932-942
Author(s):  
N. V. Tsekhomskiy ◽  
D. V. Tikhomirov
Keyword(s):  
Financial Analysis ◽  
Price Volatility ◽  
Risk Allocation ◽  
General Description ◽  
Project Financing ◽  
Investment Activity ◽  
Financial Flows ◽  
Investment Projects ◽  
Financing Mechanism ◽  
Key Indicators

Aim. The presented study aims to investigate the use of the project financing mechanism to increase the investment activity of businesses and to identify opportunities for the allocation of cyclical risks and the corresponding development of project financing conditions.Tasks. The authors briefly overview the investment climate and investment activity of large businesses in Russia; provide a general description of the project financing mechanism in the implementation of investment projects and the allocation of risks among participants; consider the factor of price volatility and the proposed structuring of project financing with allowance for potential changes in prices for the project’s products.Methods. This study uses general scientific research methods (analysis, synthesis, induction, deduction), including analysis of public information through the example of major Russian companies, analysis of the key indicators of investment activity, analysis of risk allocation options in the financial flows of projects. Specific methods of financial analysis are also used to examine the results of the implementation of investment projects.Results. The key indicators of investment activity of the major Russian companies are presented. The possibility of using the mechanism of project financing and risk allocation among participants is determined.Conclusions. The investment activity of a considerable part of large Russian businesses is moderate. At the same time, there is a huge potential for growth using either internal funds (profits, accumulated cash balances) or project financing instruments. An example of using the mechanism of accelerated repayment of debt financing is provided.

scholarly journals PROJECT FINANCING AS A TOOL FOR REGIONAL PROJECT LENDING

2018 ◽  
Vol 2018 (2) ◽  
pp. 128-132
Author(s):  
В. Переверзева ◽  
V. Pereverzeva
Keyword(s):  
Regional Analysis ◽  
World Market ◽  
Project Financing ◽  
Investment Projects ◽  
Administrative Costs ◽  
Limited Budget ◽  
Single Industry ◽  
Regional Project ◽  
High Level ◽  
Further Development

<p>Further development of single-industry towns, as well as solution of their acute socio-economic issues demand modernization, redevelopment of city-forming enterprises on an innovative basis, formation of a new «image», all of which is impossible without attracting significant financial resources. In the conditions of limited budget financing, aggravated by the necessity to implement major investment projects, only the most effective methods of financing investment activities should be applied in single-industry urban environment. It is justified that in monocities, whose economy is characterized by a high level of risks, it is advisable to use such method as project financing for financing investment processes. World experience in managing the economy in risky and crisis situations shows that project financing is the most effective and sustainable form of financing, which justifies the significant legal and administrative costs inherent to its implementation. Regional analysis of the world market of project financing allows us to conclude that this form of financing is especially useful for countries and regions with underdeveloped institutions.</p>

scholarly journals La evaluación estandarizada y el objetivo privatizador de gran escala: la polémica sobre el SIMCE y una mirada desde la visión de la economía

2016 ◽  
pp. 101
Author(s):  
Osvaldo Jara Gómez
Keyword(s):  
Standardized Testing ◽  
Standardized Tests ◽  
School System ◽  
Large Scale ◽  
Cash Flows ◽  
Educational Quality ◽  
Investment Projects ◽  
Assurance System ◽  
Education Industry

RESUMENLa Ley del Sistema de Aseguramiento de la Calidad (SAC) ha instalado con carácter legal y obligatorio la toma censal de pruebas estandarizadas a todos los establecimientos del sistema escolar chileno. El presente ensayo discute la forma en que los resultados de las pruebas estandarizadas, además, de informar a las familias sobre calidad de la educación de los colegios, podrían servir para informar sobre los flujos de caja de las instituciones a fin de permitir la evaluación de proyectos de inversión en gran escala en la industria educativa chilena.Palabras clave: privatización de la educación, pruebas estandarizadas, industria educativa, aseguramiento de la calidad.Standardized evaluation and the large-scale privatization purpose: The controversy about the SIMCE test and a perspective from the EconomyABSTRACTQuality Assurance System Law (SAC) has installed as legal and mandatory the census-like standardized tests to all centers of the Chilean school system. This paper discusses how the results of standardized tests also inform families about educational quality of schools and could be used to report cash flows of the institutions so as to allow the assessment of large scale investment projects in Chile’s education industry.Key words: privatization of education, standardized testing, education industry, quality assurance.

scholarly journals Assessment and mitigation of credit risks in project financing

2020 ◽  
Vol 15 (1) ◽  
pp. 72-84
Author(s):  
Svitlana Naumenkova ◽  
Ievgen Tishchenko ◽  
Svitlana Mishchenko ◽  
Volodymyr Mishchenko ◽  
Viktor Ivanov
Keyword(s):  
Credit Risk ◽  
Risk Mitigation ◽  
Investment Project ◽  
Cash Flows ◽  
Project Finance ◽  
Project Financing ◽  
Investment Projects ◽  
Credit Risks ◽  
Financial Pressure ◽  
Financial Strength

Lending to long-term investment projects in fragile countries requires additional financial instruments to control the sustainability of project cash flows and to increase the borrower’s financial discipline in debt servicing. This paper analyzes the special aspects of using financial covenants as credit risk mitigation instruments in project financing in Ukraine. It also argues that regulatory requirements to maintain financial strength indicators at the appropriate level have an indirect impact on the change in project finance loan rates. The study primarily aims at developing approaches to defining a credit rate corridor for an investment project, depending on changes in the values of financial sustainability indicators. The implementation of the proposed approach allows increasing the validity of credit risk components for investors and optimizing capital value for borrowers.As required by international practice, violation of covenant terms is the trigger for satisfying the creditors’ claims. According to the authors’ conclusions, the use of financial covenants as a tool for protecting the creditors’ interests should not be an instrument of unreasonable financial pressure on borrowers. The study reveals benefits and drawbacks of using financial covenants to mitigate credit risk and reduce the probability of a borrower default in the field of project financing in Ukraine.

scholarly journals On aspect of reducing bank risks of corporate loan

2021 ◽  
Vol 2021 (1) ◽  
pp. 108-114
Author(s):  
Aleksandr Evgenievich Ushanov
Keyword(s):  
Commercial Banks ◽  
Large Scale ◽  
State Level ◽  
Legal Framework ◽  
Bank Loans ◽  
Internal Resources ◽  
Investment Projects ◽  
Mandatory Participation ◽  
Corporate Loan ◽  
Investment Process

The article considers stagnation of lending by Russian commercial banks to corporate borrowers in the recent years. It has been proved that banks are more willing to invest their free credit resources in the financial sector, rather than the real sector of the economy, or place them on correspondent accounts and deposits with the Bank of Russia in the conditions of a continuing liquidity surplus, as well as taking into account the growth of overdue loan arrears. The necessity of stimulating measures at the micro-economic and macro-economic levels is justified. The basic condition for reducing credit risks is not only to improve the financial condition of borrowers and increase the profitability of their activities, but also to build a carefully verified, risk-oriented mechanism for reviewing loan applications. The elements of the new lending process are listed: updated mechanism for setting limits and risk profiles, mandatory participation in the approval of an underwriter’s application, using models in the analysis of transaction risk. The participants and main operations in the new lending process are illustrated. The stages of considering an application of a potential borrower for a loan are discussed in detail. Measures to support banks lending to the economy at the state level are also formulated, among which are: limiting the ability to invest borrowed funds in financial instruments, improving the legal framework for the practical large-scale development of mergers and acquisitions, developing a long-term concept of the investment process for using the internal resources of the country’s economy, foreseeing tax benefits, refinancing commercial banks on preferential terms for investment projects, expanding the practice of issuing government guarantees for bank loans, etc.

OPTIMAL SELECTION METHOD FOR INVESTMENT PROJECT

2010 ◽  
Vol 8 (1) ◽  
pp. 21-36
Author(s):  
Vytautas Jonas Žilinskas
Keyword(s):  
Investment Project ◽  
Financial Economic ◽  
World Market ◽  
Modern World ◽  
Investment Activity ◽  
Investment Projects ◽  
Investment Control ◽  
Modified Method ◽  
Complex Evaluation ◽  
Priority Allocation

Under the modern world market conditions the investment activity of enterprises is increasing. Therefore, one of the main aspects of the investment activity guarantee is a selection and apprehension of the main principles of the investment control and possi-bilities of different uses of the investment instruments. For the optimum selection of the investment projects it is suggested to use a formalistic experimental author’s modified method of priority allocation and selection, which gives an opportunity to evaluate the investment project according to different partial criteria and their meaning of importance. Working out this way a complex evaluation of each chosen investment project is obtai-ned. Using the suggested MPSP (modified method of priority allocation and selection) the investment projects are evaluated with qualitative and quantitative criteria. So this method can be used when qualitative criteria of evaluation are predominated. Formalis-tic methods of analysis cannot be used to establish quantitative criteria and those small projects when it is relatively too expensive to apply other usual methods of the financial economic analysis. Method MPSP selection is universal and ordinary so it can be used to establish the efficiency of different projects, to classify projects, to model the strategy of the state economy. If you like to control the realization of the chosen investment project more effectively and rationally it is suggested to use PERT (Program Evaluation and Review Technique).The main control elements of the investment project are reviewed in the article using PERT which is useful to draw up an optimistic reticular schedule of the investment work implementation.

METHODICAL BASES OF ASSESSMENT OF ECONOMIC EFFICIENCY OF INVESTMENT IN ENTERPRISE DEVELOPMENT

2018 ◽  
Author(s):  
Olexandr Yemelyanov ◽  
◽  
Tetyana Petrushka ◽  
Lilia Lesyk ◽  
Anastasiya Symak ◽  
...  
Keyword(s):  
Cash Flow ◽  
Economic Efficiency ◽  
Cash Flows ◽  
Time Interval ◽  
Enterprise Development ◽  
Investment Activity ◽  
Investment Projects ◽  
Retrospective Assessment ◽  
Tangible Assets ◽  
The Moment

Ensuring economic development of enterprises requires from them the investment of financial resources. Herewith there are many directions of such investment, methods and sources of financing of investment projects, in particular, the purchase of fixed assets and other assets. When adopting investment decisions on the acquisition of assets, the enterprise should compare the expected cash flows from the exploitation of these assets with the amount of investments in their purchase. Under such conditions, it appears a need for a retrospective assessment of the economic efficiency of investments in the acquisition of assets by enterprises in previous periods. The purpose of this article is to develop methodical bases for assessing the economic efficiency of investment in enterprise development. The method of assessing such efficiency for the totality of the available assets at the enterprise is developed, taking into account the terms of their acquisition and the value of net cash flow from their exploitation from the moment of their acquisition until the moment of assessment. It is proposed to evaluate the indicator of the period of achievement of the minimum required efficiency of investments in the development of the enterprise. This period represents the time interval between the moment of investing in the acquisition of assets of the enterprise and the moment when the received cash flow will provide the minimum acceptable level of economic efficiency of invested money. The article shows that the achievement of the minimum acceptable efficiency of investment in the development of the enterprise is a criterion for the success of its investment activity. The factors influencing the period of achievement of minimum acceptable efficiency of investment in the development of the enterprise are determined. Directions for reduction of this period are determined. In particular, they include the optimization of volumes of current assets of the enterprise. A model for determining the value of financial results of the enterprise, which will provide the minimum acceptable efficiency of funds that were invested in tangible assets of the enterprise in previous periods, is proposed. Implementation of the developed methodical principles for assessing the economic efficiency of investing in the development of enterprises in their practice will improve the monitoring of investments realized by enterprises and the process of regulating their investment activity.

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