FINANCIAL SUPPORT AND EFFICIENCY OF IMPLEMENTATION OF GOVERNMENT HOUSING ACCESSIBILITY PROGRAMS IN UKRAINE

The state of financial support of seven state programs of housing affordability, which currently operate in Ukraine, has been studied and analyzed. As a result, the most effective programs in terms of state aid and the average amount of state aid per recipient were identified. The main significant shortcoming in the implementation of state programs for housing affordability is their constant underfunding from the state budget, which hinders the manifestation of a synergistic positive effect. Deficit of budget funds and restrictions or complete refusal to allocate budget allocations to finance state support for housing affordability programs for various categories of the population negatively affect the state of development of the residential real estate market in Ukraine. This constrains both the demand and the supply of housing due to the lack of financial resources to cover the existing investment needs both at the construction stage and during the sale of already built residential real estate. The multiplier effect from the implementation of state programs of housing affordability on the revival of the real estate market by attracting citizens’ own funds to the construction industry is determined. The priority mechanisms for providing housing to Ukrainians are outlined: mortgage loans at 7% per annum with a down payment of 15% of the cost of housing and financial leasing at 5% without down payment, which are aimed primarily at supporting the population of Ukraine and strengthen protection of interest’s citizens. There is a need to improve financial and credit instruments that overcome the problem of lack of financial resources for the real estate market and help to quickly create the necessary residential real estate, taking into account the strategic interests of all participants — individuals (investors), developers, banks and non-bank financial institutions, state and local authorities, as well as local communities. Keywords: financial support, state program, investment projects, financial and credit instruments, mortgage loans, financial leasing, residential real estate market. JEL Classification G21 Formulas: 0; fig.: 1; tabl.: 1; bibl.: 10.

Sustainability Strategies of Equipment Introduction and Overcapacity Risk Sharing in Mask Emergency Supply Chains during Pandemics

The sustainability of the mask emergency supply chain faces two problems during the current COVID-19 pandemic. First, mask manufacturers are mainly small and mid-size enterprises, resulting in a lack of funds and credit lines for the introduction of equipment. Second, the periodicity and uncertainty of pandemics create overcapacity risk for the mask emergency supply chain. To solve these problems, this study incorporates financial leasing institutions and the government into the mask emergency supply chain. Based on a questionnaire survey of practitioners of financial leasing institutions, the relationship between mask manufacturers, financial leasing institutions, and the government in the mask supply chain is analyzed through a game model, and the behavior of mask manufacturers to reduce the scale of mask production after the occurrence of overcapacity is investigated using the cusp catastrophe theory. We find that in the case of masks’ overcapacity, mask manufacturers tend to continue production. Finally, we propose that financial leasing institutions should lease mask production equipment to mask manufacturers under the guarantee of the government and develop a mechanism for the three parties to jointly share the risk of mask overcapacity, aiming at ensuring the sustainable manufacturing of masks during the pandemic.

Ijara as an Innovative Product in Agricultural Financing

The relevance of the study is due to the necessity to solve the problems of agricultural lending in the Kyrgyz Republic. The problems of financing and lending to agriculture are still urgent in the Kyrgyz Republic, therefore, specific financial instruments of Islamic banking, which are highly appreciated in the practise of other countries, are well suited for project financing, work in conditions of high uncertainty characteristic of agriculture in the Kyrgyz Republic. The purpose of the study was to identify alternative loan products for agricultural economic entities based on Islamic principles of financing in the Kyrgyz Republic. Research objectives: to provide brief information on the current state in the field of agricultural lending; give brief information on the development of Islamic principles of lending in the Kyrgyz Republic; define the concept and classification of Islamic banking instruments in agriculture; define the financial instrument “Ijara” and identify its advantages. Research methods: methods of the empirical level (studying of literature and other sources of information, observation, comparison), methods of the theoretical level (study and generalisation, analysis and synthesis). In the process of writing this article, Islamic banking instruments have been reviewed and classified. The concept of Ijara contract was considered, new modern technologies in the field of Islamic banking were investigated. The main distinctive principles of Islamic banking from the Western model of financial leasing were analysed. The credit history of agriculture and forestry of the Kyrgyz Republic was analysed.

Modeling of management decisions on financial leasing in the agri-food sector

In the context of the COVID-19 pandemic and systemic crisis phenomena in the economy of many countries, limited financial and logistical resources in most agri-food enterprises, financial leasing is one of the innovative procedures aimed at upgrading fixed assets of economic entities by obtaining the latest equipment without a significant expenditure of funds for a one-time payment of its full value. In this regard, the purpose of the research is to form a procedure for optimizing management decisions on the selection of cost-effective partners in the field of financial leasing to increase the level of profitability of the enterprise. The article, based on direct methods of decision-making theory, adapts three decisive conditions for determining the economic feasibility of relationships with counterparties in the field of financial leasing. As a result of the research, the procedure of rating the economic utility of financial and economic relations of the agri-food enterprise-lessor with partners by synthesizing, normalizing and comparing the main parameters that characterize the specifics of leasing relations with each potential counterparty-lessee of a particular agri-food enterprise-lessor.

THE ESSAY ON A DOCTRINE OF TITLE-BASED SECURITY DEVICE

The paper deals with the concept of title-based security. The author examines the substance of the concept and its historical roots. The problems of repurchase agreements, retention of title, assignment with the security purposes and financial leasing are analyzed. The author is paying special attention to the bankruptcy issues, e.g. the insolvency of the provider of the security and the security creditor.

Sustainability in the Business Sector: A Fuzzy Multicriteria Decision-Making Model for Financial Leasing Company Selection of the Vietnamese SMEs

The uses and management of capital is extremely important to the operation of any businesses. However, not all businesses have available capital, so the use of loans in many different forms is always an effective solution in managing corporate finance. Accompanying with businesses, many financial leasing companies have implemented products and programs to lend money to businesses with low interest rates. So, choosing the best financial leasing company is a primary concern of businesses. To increase competitiveness, financial leasing companies often offer preferential conditions to attract businesses. Choosing the best financial leasing service to leasing is important and necessary to those businesses. Thus, the selection of a financial leasing company by small and medium enterprises benefits from the application of Multicriteria Decision-Making (MCDM) methods which allows the decision maker to consider various qualitative and quantitative criteria. In this article, the author applied Fuzzy Analytical Network Process (FANP) to calculate the related criteria weights of the financial leasing company selection problem of businesses. Then, the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) is applied to rank the potential decision-making units. This research establishes one complete and efficient model for financial leasing company selection using FANP and TOPSIS methods. The proposed model is then applied into a real-world case study to demonstrate its feasibility.

Financial Leasing as a Guarantee of Development of the Agricultural Sector Economy of Ukraine

Annotation. Introduction. It was found that the promising direction of renewal of fixed assets and the provision of a number of additional services for the agricultural sector is financial leasing. The essence of financial leasing, the subjects involved in its implementation, as well as regulatory support are analyzed. The advantages and disadvantages of financial leasing are systematized. The dynamics of changes in the share of the value of financial leasing agreements concluded by industries and equipment is presented. The foreign experience of financial leasing as an attractive and effective instrument of financial investments is generalized. Purpose. The purpose of the study is to reveal the essence and features of financial leasing as one of the promising tools for the development of agricultural sector entities, to upgrade equipment and provide a number of additional services.Results. The article explores the realities and identifies prospects for the provision of financial leasing services to the agricultural sector of Ukraine, as an important tool for updating production assets and providing additional services. The advantages and disadvantages of financial leasing operations are systematized. The world experience of financial leasing as an attractive and effective tool of financial investments in production assets is considered. Conclusion. The growth of the financial leasing market for the provision of services to agricultural entities will be due to the resumption of economic activity and the promotion of the benefits of this form of financing capital investments. Raising consumer and small and medium-sized business awareness of leasing as a tool for access to finance should be a priority for the leasing industry, its association and the government.