Financing Of Investment Projects Research Articles

STATE AND PROSPECTS FOR THE DEVELOPMENT OF ISLAMIC FINANCE INSTRUMENTS (SUKUK) IN RUSSIA AND ABROAD

The search for new sources of financing investment projects in modern Russia in the context of external sanctions and the implementation of geopolitical threats actualizes the problem of incorporating Islamic finance instruments into the structure of the financial market. The early twentieth century development experience of a number of foreign countries shows the steady growth of the assets of Islamic banks, investment funds and the volume of issuance of investment certificates (sukuk), which constitute the main segments of Islamic finance in the world. Islamic financial assets are widely represented in the Gulf countries, Southeast Asia, the Middle East and South Asia, and Africa. The implementation of the principles of Islamic finance in the Russian Federation is hampered by legal, cultural, historical and political factors. While there are certain Islamic financial products in Russia, there is no issue of sukuk at all. In this regard, the purpose of this paper is to study the principles of Islamic finance and the functioning mechanism of the market for the investment certificates (sukuk), possibilities and limitations of their implementation in the modern Russian economy. The author defines sukuk as an Islamic financial instrument used for securitization of assets, and identifies its differences from traditional bonds. Alternative approaches to solving the problem of compliance of sukuk with Sharia principles are analyzed. The prerequisites for realizing the potential of sukuk in modern Russia are determined and the obstacles to their issuance are formulated. It is concluded that the adoption of the Federal Law of 04.08.2023 N 417-FZ "On Conducting an Experiment to Establish Special Regulation in Order to Create the Necessary Conditions for Carrying out Partnership Financing Activities in Certain Constituent Entities of the Russian Federation and on Introducing Amendments to Certain Legislative Acts of the Russian Federation" and its implementation, taking into account its provisions of pilot projects in a number of Russian regions, will make it possible to intensify the process of incorporation of project financing instruments into the structure of the financial markets of modern Russia.

DETERMINANTS OF THE DIMENSIONS OF FINANCING FOR INVESTMENT PROJECTS TO CREATE JOBS DURING THE PERIOD 2002-2013: A QUANTITATIVE STUDY OF THE NATIONAL AGENCY FOR INVESTMENT DEVELOPMENT IN ALGERIA

The study aims to fix the determinants of the financing dimensions of investment projects completed during the period 2002-2013. The purpose of undertaking these investment projects is to reduce unemployment and create new jobs. The study is purely quantitative after a complete database was obtained for each of the 48 states of Algeria, according to the administrative division in that period, from the National Agency for Investment Development (NAID) in Algeria. The determinants of the dimensions of financing for investment projects were obtained after we used the statistical technique of multiple linear regression analysis. From the perspective of the objective database, the methodology used to analyze the data, and complete transparency in dealing with the research process, we can confirm that the research results are honest and reliable, and the results can be generalized and a strategy for promoting investment in Algeria can be drawn up on a correct basis.

Dynamics of green finance in the Russian Federation

Against the backdrop of the growing importance of sustainable development and environmental protection issues, the urgent need to increase the share of “green” investments in the financing of investment projects is substantiated. The study proposes to pay special attention to the formation of a solid regulatory framework in the field of green finance. The proposal includes the development of a strategy and concept for the development of green financing, as well as a law that would establish an effective mechanism for the implementation of green financing, taking into account the peculiarities of Russian reality. This mechanism should make private investment more attractive for financing projects and contribute to the creation of a set of measures, including ways to reduce the financial burden on the federal budget and the budgets of the Russian Federation constituent entities. We come to the conclusion that Russia should take into account global experience and practices in the field of green financing, as well as stimulate the introduction of concession agreements and public-private partnerships. The introduction of “green” financing will contribute to the preservation of natural resources and their further increase, which will allow the creation of innovative products, promote the development of scientific and technological progress, and also preserve the health of the nation, since products made in “green” financing projects are environmentally friendly.

THE NEED FOR INVESTMENT PROJECT MONITORING IN EFFECTIVE BUSINESS MANAGEMENT

Modernization of the economy, technical-technological rearmament of priority sectors, production of competitive products on the world market, and increase of the country's export potential are among the urgent issues today. The implementation of these tasks cannot be imagined without investments. That is why we are paying serious attention to the financing of investment projects in our country. Because the investment project is an important factor that ensures the growth of the economy and the development of production.

Unconventional monetary policy, financial frictions, and the equity tandem

A key feature of many DSGE frameworks designed to model Quantitative Easing (QE) is that net worth only plays a relevant role on bank’s balance sheets. In reality, however, net worth of borrowers and lenders plays a relevant role in financing investment projects. I show that this equity tandem has important implications. Net worth of non-financial firms acts as a first line of defense, since non-financial firm’s balance sheets are hit in the first place by real sector shocks. Modeling the equity tandem increases the resilience of the model and, therefore, implies smaller gains of unconventional monetary policy. A novel insight from the simultaneous modeling of borrowers and lenders net worth is that by decreasing the cost of external finance a QE policy is redistributing net worth from banks to non-financial firms. Additionally, considering the reverse operation, a credibly announced Quantitative Tightening (QT), helps to stabilize the spread between the return to capital and the deposit rate during the zero lower bound period. However, different anticipated QT paths are shown to have little consequences for output and inflation.

Ways to increase ecotourism services in the international tourism market

The experience of foreign countries and international organizations regarding the development of ecological tourism was analyzed, and the activities of progressive, scientifically based global practices were investigated. The main problems that prevent the implementation of international experience in the Ukrainian space have been identified, namely: lack of state support for the development of rural, ecological (green), agrarian tourism; low level of information support; imperfection of the legislative and regulatory framework; limited amount of investment resources; insufficiently practical application of the mechanism of public-private partnership when attracting non-traditional sources of financing investment projects; low level of activity of local authorities in the development of ecotourism; lack of tax benefits for persons involved in the provision of ecotourism services. The priority directions for developing ecotourism in Ukraine are given, taking foreign experience into account. The importance of developing and popularizing Ukrainian ecological tourism on international markets as an element of ensuring a stable situation in the tourism industry is noted. Ecotourism products on the international tourist services market were studied. The types and classifications of ecotourism products, organization, and promotion of tourist services in the international tourist market were studied. It has been established that ecological tourism is gaining more and more popularity and occupies a significant place in the tourism industry. It was determined that the emergence of a new type of tourism has a positive effect on the economic development of countries. The most popular in ecological tourism are tours to those countries where there are still priceless natural resources. It was analyzed that the primary goal of ecotourism is the study and preservation of the environment, the preservation of priceless landscapes. This is the main difference from other types of tourism. The potential for the development of international ecotourism is significant. However, it needs to be used more. Thus, one of the main tasks in the field of tourism development is the creation of ecological paths and ecotourism paths. Ecological tourism can be a specialization that will become a competitive alternative to irrational economic activity and, with the support of state institutions, a natural mechanism for ensuring the region's sustainable development. Thus, the development of international ecotourism is a necessary prerequisite: the availability of resource potential, a harmonious combination of natural and anthropogenic objects, and a network of tourist routes that can become the basis of road tourist routes. Keywords: eco-tourism, prospects, solutions, problems, implementation, tour

Financing investment projects in the IT sector of the Russian economy

The purpose of the article is to analyze the specifics of financing investment projects in the IT sector of the Russian economy. As part of the paper’s research objectives systemic aspects and peculiarities of investment in the IT sphere, state of the Russian IT market, and trends in its development have been considered. IT investment types and characteristics have been analyzed. Research methods include data systematization and generalization on the topics of modern research on the peculiarities of financing investment projects in the IT sector of the Russian economy. The developed target mechanism allows to consider system aspects of investment and improve validity of the most effective option choice for the IT sphere, which is a new scientific result obtained by the author. Based on the proposed sequence of using the target mechanism, it is possible to develop effective algorithms for decision-making on investment in the IT sphere.

NATURE, TYPES AND FACTORS AFFECTING INVESTMENTS

The very fact that the concept of investments, as the main economic concepts of modernization of the economy, has entered our lives today widely and quickly shows its essence and importance, necessity, and creates the need to reveal it. This concept brings with it the discovery of many new concepts and economic knowledge, such as the concept of investment projects, the implementation and financing of investment projects, their technical and economic justification and expertise, project analysis, evaluation and monitoring of the effectiveness of projects, and their discovery in our economic life today. making us realize how important it is.

Сравнительная характеристика моделей финансирования инвестиционных проектов акционерных обществ

The article considers the role of investments in the modern economy. A comparative analysis of the models of financing investment projects of joint-stock companies is carried out: equity financing; debt financing; mixed financing. The main parameter of the effectiveness of the investment project, which is the net present value of the cash flow of shareholders who purchased additionally issued shares, has been analyzed. The effectiveness of financing from borrowed funds is calculated, as well as the calculation of mixed financing. The optimal scheme of financing the investment project was determined by selecting the ratio of the share of borrowed and own funds, taking into account the financial capabilities of the economic entity, the interest rate on the loan and the rate of return on equity. The advantages and disadvantages of each model are noted. The indicators of net present value of different financing schemes are given. The model of mixed financing is considered the most effective, it is implemented through the involvement of both legal entities and individuals in the investment project, and, in some cases, of the state. It is emphasized that the reasonable attraction of financing sources and their rational use, developing an effective capital structure contribute not only to the development of the organization's activities, but also increase its competitiveness and investment attractiveness. Conclusions are drawn about possible implementing the model of public-private partnership. Graphs of indicators of the net present value of shareholders and enterprises in different models of financing investment projects of joint-stock companies are presented.

Impact of financial leverage on the performance of tourism firms in the MENA region

Purpose – Leverage refers to the use of borrowed capital to finance investment projects. The question of how much debt is optimal for a firm has always been challenging for business managers and scholars alike. Most empirical studies have tried to achieve this, but no conclusive findings have been produced yet. The debt-equity balance changes with the industry, and what is optimal for one industry may not be so for another. Our study aims to determine the impact of leverage on the financial performance of tourism firms in the MENA region. Methodology – To this purpose, we have collected data from a sample of 71 listed firms from the tourism sector. We have employed pooled and static panel regression, using published financial information from 2010 to 2021 in the MENA region. We obtained an unbalanced and cross-sectional panel of 768 firm-year observations from the 71 firms used in the study. Findings – The findings reveal that leverage represented by the debt ratio and equity ratio has a significant negative impact on the financial performance of tourism firms represented by ROA and ROE. Conclusion – The implication of the study findings is that debt levels beyond a certain level can be detrimental to firm performance. Consistent with the trade-off theory, managers must carefully balance the advantages and disadvantages of borrowings over their own capital. Keywords: MENA, tourism industry, performance, profitability, leverage, capital structure. JEL Codes: M41, Z33

Availability of bank loans for economic entities in Kazakhstan: assessment of the interrelation of influencing factors

Currently, the credit opportunities of the financial and credit sector are strategically important in ensuring the full development of economic entities, modernization and diversification of production, financing of investment projects. In Kazakhstan, in order to implement state programs, strategies for the development of the financial and credit sector are being developed, modern mechanisms for regulating and stimulating the lending activities of second-tier banks are being used. At the same time, it is noted that the target indicator for expanding the participation of banks in financing the economy has not been reached due to the negative impact of macroeconomic and geopolitical factors, including a decrease in business activity, the dependence of large enterprises of Kazakhstan on external borrowings and others. The article substantiates that the limited access to credit resources is a serious obstacle for economic entities, including small and medium-sized enterprises. A comprehensive solution to the problems in this area is needed to improve the process of interaction between credit institutions and economic entities. Increasing the availability of loans for the real sector of the economy can be achieved through the use of digital technologies, including big data analytics and artificial intelligence in decision-making and the formation of credit conditions.

Small Business Investment processes financing package

The investment importance, their financing issues at the small business level reflect the current agenda of the state socio-economic development. The investment market is a set of objects and subjects actions through the investment services implementation. In general, the Russian investment market tasks are: innovative projects implementation; development of the investment potential of the market as a whole. The article defines the small business role, it presents the financial support forms for small businesses. The authors come to the conclusion that the “project finance” category is a complex tool that can be presented in different forms and types. A similar point of view has developed due to the lack of consensus among researchers and practitioners; the main features of financing investment projects in the small business segment are highlighted: the lack of their own funds to finance investment projects; the attracting financial resources difficulty in investments using credit instruments (lack of collateral); underdevelopment of small business.

РЕСТРУКТУРИЗАЦИЯ ИНВЕСТИЦИОННОГО КАПИТАЛА В УПРАВЛЕНИИ РИСКОМ ФИНАНСОВОГО ЛЕВЕРИДЖА ПРЕДПРИНИМАТЕЛЬСКИХ СТРУКТУР

Carrying out investment activities in the context of modern macroeconomic and geopolitical uncertainty is associated with many different financial and economic risks. They can not only reduce the effectiveness of investment processes, but also lead to the financial insolvency of the entity as a whole. A striking example of such a critical threat is the risk of financial leverage. It is based on the irrational use of equity and borrowed capital. Approaches to leveling out this problem involve, on the one hand, the provision of specialized regulatory influence at the state level on the parameters of attracted capital. On the other hand, practical local decisions of management personnel are formed on restructuring the sources of financing investment projects. At the same time, the first group of methods is actively and specifically applied by the Government of the Russian Federation according to the end of 2023, but the second group is actually “at the mercy” of the professionalism of risk managers. The purpose: the formation of scientific and practical recommendations for the restructuring capital of business structures in order to maximize the effectiveness of investment projects in the conditions of stabilization (preservation) of financial stability. Methodology: based on an assessment of the risks of using capital for a specific research object of the research object, practical recommendations for leveling the risks of financial leverage are formulated. As a result, when implementing an investment project, in order to stabilize the financial stability of the company, the use of five promising areas of capital restructuring is justified. Among them, a certain variability between scenarios can be noted. Firstly, to increase equity and simultaneously reduce borrowed capital. Secondly, to exclusively reduce the company's liabilities and reduce the value of its property. And thirdly, to expand the property complex by attracting new co-investors (attracting new equity capital without the possibility of management). In this case, the direct selection of the optimal and most effective approach should be made not only on the basis of the selected particular features, but only after calculating all costs, as well as after analyzing all updated profitability parameters.

Actual issues of increasing the role of bank loans in financing investment projects of enterprises in the real sector

Actual issues of increasing the role of bank loans in financing investment projects of enterprises in the real sector

Українські банки в умовах воєнного стану

In the conditions of martial law, Ukrainian banks have reduced their credit activity, which is largely due not to the deterioration of the resource base, but to the increase in credit risks. State-owned banks were the most vulnerable to the shock caused by the war. There is too large a share of bank income in total interest income from securities transactions, for some banks it is so large that it is more in line with the investment bank business model. Very large investments in government securities carry the potential risk of recognition of losses and the need to form reserves in amounts that can be compared to equity. The rate of formation of reserves for such financial instruments is very slow. State-owned banks were the most vulnerable to the shock caused by the war. The main reason for unprofitability is the formation of reserves. The impact of the trade outcome is significant for state-owned banks and banks with local capital. It is supposed that the National Bank could recommend banks to set limit values of appetite for the risk of investments in securities. In order to monitor the financial condition of banks, it is suggested to use the ratio between reserve formation costs and interest income to analyze the nature of losses or profits of banks. During the war, many production capacities of the holdings were damaged and require investment expenditures for their reconstruction or some time to restore functionality, or their collateral value will be hopelessly lost. Crisis measures should include the sale of part of the assets and the relocation of production facilities. Therefore, a special program of preferential early financing of investment projects is extremely necessary for the recovery of the national economy.

INVESTMENT RESOURCES OF ENTERPRISES AND SOURCES OF THEIR FORMATION

INVESTMENT RESOURCES OF ENTERPRISES AND SOURCES OF THEIR FORMATION

The Impact of Bank Credit on Investment and Public Spending in Iraq for the Period (2005-2021)

Purpose: The current study aims at examining the reality of bank credit, analyzing, and estimating investment and public spending in Iraq. The research also aims at showing the impact of bank credit on investment and public spending in Iraq.
 Theoretical framework: Bank credit has an instrumental and effective part in financing most economic activities, which contributes to revitalizing the national economy by organizing and developing short, medium and long-term financing mechanisms. As for investment and public spending, they reflect the development of the economy and the extent of financial and monetary stability that the country has.
 Methodology: For reaching the research methodology, the inductive approach was adopted to study the total facts through formulating economic analysis descriptively by using modern standard tools in economic analysis to show the impact of bank credit on investment and public spending.
 Finding: It was concluded that bank credit has a key role, especially in financing investment projects that require great funds in order to create a favorable climate for investment. The relationship between bank credit and investment is a direct relationship.
 Research, scientific and social implications: The study identifies investment financing and public spending and how bank credit can meet this financing through the bank strategies. The study also determines which of the two variables, investment and public spending, is most affected by bank credit.

Theoretical foundations of rendering state support to аgroindustrial complex organizations

The article presents the results of studies of the mechanism for providing state support to agroindustrial complex organizations, including the directions of financing investment projects. Definitions of the terms “subsidies for the payment of interest (part of interest) for the use of loans”, “budget transfers to reimburse part of the capital costs of investment projects”, and a flowchart for improving the mechanisms of state support for the agroindustrial complex of the Republic of Belarus (classification of state support measures) are given.

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Abstract. Introduction. This article examines the domestic state loan bond market in Ukraine, taking into account the pandemic and the war with Russia. The deficit state of Ukraine's budget necessitates attracting additional funds to finance growing expenses. The government securities market is an important component of the country's financial system. The Ukrainian government most often issues bonds of the domestic state loan (OVDP), in their essence, these debt securities are an important tool of fiscal policy. Circulation of bonds in Ukraine is carried out exclusively in electronic form. The largest volumes of issuance of debt securities were recorded in 2014 and since 2019 till 2021 years. These years were a crisis for Ukraine, and the need for additional resources is justified. The work analyzed that the main buyers on the OVDP market are banking institutions and non-residents, while individuals do not have sufficient knowledge about the possibility of investing in debt securities. Purpose. The purpose of the article is to study trends in the volume of OVDP issuance on the stock market of Ukraine during 2013-2022, as well as directions for the use of withdrawn funds. If we talk about investing in foreign currency, the article examines that it is more profitable to invest in OVDP, rather than depositing, especially the high yield of bonds denominated in US dollars. Results. The authors analyzed and demonstrated the size of the issue of OVDP on the primary market and directions of use of funds from this placement. An important economic phenomenon during the issuance of a currency OVDP is the strengthening of the national monetary unit - the hryvnia. In this way, the government can influence the stability of the national currency. However, when the bond matures, there is a reverse effect, which is why it is important to take this into account and to facilitate the maturity of debt securities to coincide with a period when foreign exchange resources are flowing into the country in a larger volume than usual. Conclusions. Conclusions were made that for the state OVDP is a significant source of financing for state budget expenditures. It is noted that domestic state loan bonds play an essential role in the development of the economy as a whole because the funds received from their issue are used to cover the budget deficit, finance investment, and social projects.

EVOLUTION OF THE INTERNATIONAL MARKET OF LEASING SERVICES

The current stage of the development of the international economy is characterized by the activation of globalization trends, among which one of the most promising forms of international cooperation, which has significant prospects, is international leasing. Today, leasing operations have become an integral part of the development and stabilization of the world economy. The growth and expansion of the global leasing market is a natural fact of the processes of globalization and integration of both production and the financial sphere. If there is a need to modernize the economy, the use of a leasing approach to financing investments plays a significant role. Being one of the most effective types of investment, leasing is widely used in all countries of the world. In developed countries, the total volume of transactions related to leasing has increased 5 times over the past 15 years. Leasing can be attributed to the form of financing investment projects, which has proven itself in global practice as quite effective for enterprises and in general for the deployment of the investment process The article examines the peculiarities and problems of international leasing as an integral part of the development and stabilization of the world economy. It was revealed that the formation and development of the international market of leasing services is connected not only with the intensive development of production activity, but also with the division of labor in the system of global economic relations. An analysis of the functioning of the international leasing market was conducted, which confirms its maximum convenience and flexibility for business development and expansion. It is shown that the growth and expansion of global leasing services is a natural fact of the processes of globalization and integration of both production and the financial sphere. It is noted that despite the global economic crisis, the leasing industry is constantly expanding, and leasing markets are increasing the scope of new business. It has been confirmed that today the world market of leasing services is successfully overcoming crisis situations in the world economy and demonstrates a significant increase in the consumption of leasing services in various regions and countries of the world.