Revitalization of infrastructural mortgage of public-private partnership projects

Abstract

Recently, there is an acute need for the creation or modernization of infrastructure facilities - transport, energy, utilities, social and other types of infrastructure, against the background of a lack of financial resources of budgets of all levels and under budgetary constraints. This situation as a whole leads to the search for additional sources of funding in the field of public-private partnership. In this context, the use of infrastructure mortgages is becoming increasingly important and relevant. The purpose of this work is to systematize the advantages and disadvantages of infrastructure mortgages, identify the main models for converting long-term liabilities into assets and justify the feasibility of creating a specialized project finance institution concentrating its activities on competent selection, structuring and monitoring of projects. In the study the author used general scientific and special methods: analysis and synthesis, analogies and comparisons, generalizations, graphical method. In the article the author identifies the features of the infrastructure mortgage and forms its advantages and disadvantages. The four main models for converting long-term liabilities into assets to be turned around are presented. The models of direct and indirect refinancing of mortgage loans through long-term debt obligations of the primary lender and the model of transferring the rights of claims on mortgage loans (mortgages) to the secondary market operator are schematically presented. The need for standardization of infrastructure mortgage to facilitate the refinancing of such projects, the formation of separate groups and their further securitization are proved. A set of state measures has been developed to reduce the risks and costs of infrastructure mortgage investors.