Public Loans Research Articles

Analyzing and Measuring the Impact of Financial Policy on Bank Credit in Iraq

This study dealt with the basics of government spending, public revenues, and public loans as indicators of financial policy and bank credit, in addition to explaining the relationship between these variables in Iraq for the period (2005-2021), by analyzing the reality of the study variables economically and analogically, the descriptive approach was used in analyzing Data for financial policy indicators and bank credit, where bank credit (BC) was analyzed as a dependent variable, and public spending (GS), public revenues (GR) and public loans (GL) were analyzed as independent variables, and according to the Dickey-Fuller test (ADF), it was found that the degree of integration of the study variables is A mixture of type (0)I and type (1)I, and thus the model was estimated according to the autoregressive distributed lag (ARDL) methodology, thus, the model was estimated according to the autoregressive distributed lag (ARDL) methodology, and according to the bounds test for co-integration, it was revealed that there was a co-integration relationship for the model, and the estimated model was successful in all standard goodness tests (autocorrelation, heterogeneity of variance, normal distribution of residuals), in addition to that it was Stable according to the CUSUM and CUSUM SQ tests. The most important results of the study were that the relationship of both public revenues and public loans in the two terms to bank credit was positive, but the relationship of government spending in the two terms was inverse, and that all of these relationships were significant. The credit provided to the public sector witnessed a continuous increase throughout the study period, while the percentage of credit provided to the government was increasing at the expense of a continuous decrease in the percentage of credit provided to public institutions, the percentage of credit provided to the public sector witnessed a decline compared to the increase in the percentage of credit provided to the public sector out of total credit. Cash, both public revenues and government spending in Iraq were negatively affected by the financial, security and health crises, but bank credit was positively affected by the same crises. The study came out with a set of recommendations, the most important of which was: Iraq should work to diversify its sources of income and reduce its dependence on crude oil and its revenues in forming its public revenues and public spending, which fluctuate with the fluctuation of global oil prices, increasing with its rise and decreasing with its fall, Iraq must work to increase the proportion of investment spending to Total government spending, Iraq must also work to reduce dependence on its oil revenues and work to increase the ratio of non-oil revenues to total public

The Politics of Public Finance Al-Mawardi’s Perspective: Al-Ahkam As Sulthaniyah

This study aims to explore the concept of Al-Mawardi's public loan. This type of research is qualitative with an exploratory approach. Data collection uses the library method. Primary data was obtained from the book Al-Ahkam As Sulthaniyah and secondary data was obtained from several scientific journals and books related to this research. The analysis used is a qualitative analysis involving descriptive and interpretive data exploration. The results of the study show that the book Al-Ahkam As Sulthaniyah discusses state income, state expenditure, and the Baitul Mal. State revenue comes from zakat, ghanimah, and fai'. The state is only allowed to spend the treasures of the baitul mal as long as these expenditures are used for the public good. Al-Mawardi divided the two objectives of allocating Baitul Mal funds: first, for maslahah (benefit) and arfaq (provision of public facilities). Second, for the mandatory function. If the government has an obligation that is a mandatory function, while the funds in the baitul mal are empty, the government may make public loans because it is feared it will cause state chaos. And this policy was never carried out by the Prophet. If the leader dies, the next leader is responsible for repaying the loan.

Effect of Foreign Direct Investment on Economic Growth: The Role of Natural Resources and Trade Openness in Ghana.

This study examined the determinants of foreign direct investment in Ghana over the period 1980 – 2017 to highlight the need for FDI to reduce our growing debt levels by reducing replacing public loans. To estimate the empirical model, the study controlled for exchange rate and inflation rate as measures of macroeconomic instability, as well as the growth rate of citizen’s income. The study employed time series analysis considering the nature the variables be annual series. Using the Augmented Dickey-Fuller (ADF) approach, the study tested for the presence of unit root adopted the Johansen Cointegration test for long run associations among the variables. The VAR and VECM models were finally estimated to achieve the objective of the study. Outcome indicated a positive relationship between natural resource availability and FDI inflows in the short-run and long-run in Ghana. Trade openness was also revealed to have a positive impact on FDI inflows in the country in both time periods. Measures of macroeconomic uncertainties such as exchange rate and inflation rate exert negative impacts on FDI inflows. Results of the study holds several policy implications including the need to achieve a sustainable economic outlook thus achieving and sustaining lower levels of inflation that will less deterrence to foreign investors. Also, the exchange rate needs to be managed in order to achieve an appreciation of the Ghana-Cedi against the US-dollar to encourage foreign direct investment and trade amongst Ghana’s trade partners. Again, further trade restrictions that are deemed unproductive can be reviewed to allow free trade, especially the Africa Continental Free Trade Area (AfCFTA).

지속가능한 국가형성을 위한 주거복지 패러다임의 전환

A necessary element for the formation of a nation is its people, who have been elevated from a “means-value” to a “humanistic value,” and as human beings, citizens must be protected by the state in terms of essential rights and values. They must also be free from state interference and obstruction in realizing these rights and values. Food, clothing, and shelter are essential for human survival. Currently, housing has become a means of accumulating wealth and a symbol of economic status and position. However, the physical space of housing is not only a place of residence but also an emotional home and the foundation of humanity. Housing cannot be left to be a means of profit-seeking or wealth accumulation. Housing policy should be a policy for all citizens, and it should be aimed at developing and maintaining a middle class of at least 80% of the population in order to ensure the sustainable and healthy development of the country. Universal housing stability should be implemented for the entire population, except for the top 10% of asset holders based on labor income. Simply enacting the “Basic Housing Act” as a law under the jurisdiction of the Ministry of Land, Infrastructure and Transport would not fully address the issue of housing welfare. Housing welfare in Korea must consider housing, education, transportation, and the environment comprehensively based on a paradigm shift in housing. In the current Korean situation, education and housing policies must be connected and directed towards the right direction. In terms of climate crisis response, housing policy must establish a new direction for improving the housing environment, including transportation and reconstruction. If climate crisis is discussed but not included in housing policy, the sincerity and effectiveness of climate response policy will be undermined. Housing, workplace, and education should be based on a certain area, and mobility should be possible within the jurisdiction of the basic local government. The beginning of housing welfare is when an average wage earner can secure a residence in a place where educational conditions and social infrastructure are in place while minimizing physical and temporal distance from their workplace, which is a socially universal phenomenon. A society where ordinary workers can save a certain amount of money from their usual household expenses and use financial tools such as public loans to secure stable housing is a normal and sustainable society. Housing must not be left to become a means of accumulating wealth and a starting point for inequality. To secure stable housing, the paradigm of housing policy should shift towards policies where profit-seeking is prohibited in living spaces through the public role and participation of non-profit organizations.

지속가능한 국가형성을 위한 주거복지 패러다임의 전환

A necessary element for the formation of a nation is its people, who have been elevated from a “means-value” to a “humanistic value,” and as human beings, citizens must be protected by the state in terms of essential rights and values. They must also be free from state interference and obstruction in realizing these rights and values. Food, clothing, and shelter are essential for human survival. Currently, housing has become a means of accumulating wealth and a symbol of economic status and position. However, the physical space of housing is not only a place of residence but also an emotional home and the foundation of humanity. Housing cannot be left to be a means of profit-seeking or wealth accumulation. Housing policy should be a policy for all citizens, and it should be aimed at developing and maintaining a middle class of at least 80% of the population in order to ensure the sustainable and healthy development of the country. Universal housing stability should be implemented for the entire population, except for the top 10% of asset holders based on labor income. Simply enacting the “Basic Housing Act” as a law under the jurisdiction of the Ministry of Land, Infrastructure and Transport would not fully address the issue of housing welfare. Housing welfare in Korea must consider housing, education, transportation, and the environment comprehensively based on a paradigm shift in housing. In the current Korean situation, education and housing policies must be connected and directed towards the right direction. In terms of climate crisis response, housing policy must establish a new direction for improving the housing environment, including transportation and reconstruction. If climate crisis is discussed but not included in housing policy, the sincerity and effectiveness of climate response policy will be undermined. Housing, workplace, and education should be based on a certain area, and mobility should be possible within the jurisdiction of the basic local government. The beginning of housing welfare is when an average wage earner can secure a residence in a place where educational conditions and social infrastructure are in place while minimizing physical and temporal distance from their workplace, which is a socially universal phenomenon. A society where ordinary workers can save a certain amount of money from their usual household expenses and use financial tools such as public loans to secure stable housing is a normal and sustainable society. Housing must not be left to become a means of accumulating wealth and a starting point for inequality. To secure stable housing, the paradigm of housing policy should shift towards policies where profit-seeking is prohibited in living spaces through the public role and participation of non-profit organizations.

Capitalizing on crises: the EBRD, Jordanian state and joint infrastructure fixes

In 2011, the European Bank for Reconstruction and Development (EBRD) extended its mandate beyond Central and Eastern Europe (CEE) to the Middle East. Since then, it has supported financial institutions, private sector involvement, energy production and, most recently, infrastructure and public service reforms. While the EBRD presents itself as supporting the region's economies in light of the refugee ‘crisis’, I question the power relations driving its recent public investments there. I situate them within the context of global capitalism’s crises since the Great Recession and MDBs’ development agendas in the Middle East, specifically increased aid since 2011. I argue that, jointly advanced by the EBRD and Jordanian state, the EBRD’s public loans in Jordan offer fixes for capitalism’s crises to the benefit of donors, the state as well as private investors. More specifically, the EBRD’s projects and emphasis on the refugee “crisis” entrench and justify market-based neoliberal reforms in Jordan’s infrastructure and public services, opening them up to investment and expanding accumulation at the expense of public interest. The Jordanian state is an active partner and beneficiary of these projects, not only establishing the necessary regulatory frameworks for them, but also aligning them with its own development agendas and interests.

The role of public loans in improving economic activities: Jordan as a model: دور القروض العامة في تحسين الأنشطة الاقتصادية للدولة: الأردن نموذجاً

The importance of the study is due to addressing an important and necessary problem that developing countries are facing, including Iraq, Syria, Libya and Jordan, in order to benefit from external and internal borrowing as an important source of transferring economic activities in the state and its sectors, and the extent of its contribution to supporting the productive sectors, and in the effectiveness of borrowing in supporting economic development What is the role of loans in various areas of economic, social and political life, and what are the reasons that motivate the state to resort to borrowing. The importance of the study is clear that internal and external public loans have an important role in achieving the financial balance of the state, in addition to that they lead to achieving financial balance After the financial deficit, that the state was suffering from, and this is in order to cover unusual public Expenditures, and public loans do not represent it is a final resource for the state treasury, but the state Must return it along with paying the annual interest resulting from the loan. From the foregoing, the study reached conclusions, the most important of which was that public loans contribute to a large extent if directed to the desired goal in reviving and revitalizing the economies of countries that suffer from the problems of poverty, unemployment and lack of funding.

Analisis Prosedur Pemberian Kredit Usaha Rakyat Pada BRI Palangka Raya Unit Yos Sudarso

People's Business Credit is one of the government programs that aims to help the Indonesian people who have small businesses to prosper the nation's economy which is carried out by certain banks, one of which is BRI. This study aims to analyze the procedures for granting public private loans as well as the supporting and inhibiting factors for distributing people's business loans at Bank BRI Palangka Raya Unit Yos Sudarso. In this study using qualitative analysis, qualitative analysis techniques are carried out by collecting, compiling and drawing conclusions about the procedure for granting People's Business Credit (KUR) at Bank BRI Palangka Raya unit Yos Sudarso. The techniques of data collection procedures in qualitative analysis are interviews, observation and documentation. Interviews were conducted with the Bank who understands the procedure for granting KUR and one of the customers of the BRI KUR Palangka Raya unit, Yos Sudarso. Based on the results of the research that has been carried out, it shows that the procedure for providing People's Business Credit (KUR) at Bank BRI Palangka Raya unit Yos Sudarso has been carried out quite well and in accordance with government regulations, namely the first stage of credit application, namely the process of collecting administrative data as the first requirement to apply KUR. The second stage is credit analysis, analyzing administrative files and making visits to prospective customers' places of business. The third stage is the credit decision, the head of the unit will provide the final result, namely the credit decision. The fourth stage is credit disbursement, which is filling out a credit agreement or credit agreement regarding the rights and obligations of the customer. The supporting factors for distributing people's business loans are data on business actors who received assistance from the president for MSMEs and data from the market office. The inhibiting factors for the distribution of people's business loans are business actors who do not and do not want to apply for loans and business actors who have businesses but have a bad loan history and some customers who apply for loans but do not own businesses.

CHINESE INVESTMENT IN CENTRAL EASTERN EUROPE AND THE WESTERN BALKAN

As part of the “Belt and Road Initiative”, China has established a platform for cooperation in the field of investment with 11 European Union countries in the region of Central and Eastern Europe and 5 countries in the Western Balkan (CEEWB-16). In addition to infrastructure projects, China has invested in this region in the form of foreign direct investments (FDI). The aim of this paper is to estimate the importance of Chinese investments for 16 countries in the CEEWB-16 region. Analyzing the placement of funds, it can be concluded that FDI are placed primarily in the countries of the region that are members of the EU, while investments in infrastructure projects are mainly directed to the countries of the Western Balkans, primarily in the transport sector. Infrastructure projects are financed by the governments of the countries borrowing from state-owned Chinese banks, and these loans have the character of public loans, but the conditions of borrowing also have commercial characteristics. In addition, the contractors of infrastructure projects are mainly Chinese companies, which largely employ their workers and import materials from China, so that the positive effect on the debtor's country are smaller. However, as the countries of the Western Balkans have limited access to European funds and a great need to invest in infrastructure, they see these investment projects as a development opportunity.

Has the Composition of the Greek Banking Sector Investment Portfolio Contributed to the Greek Economy Financial Crisis?

The banking sector in Greece met a large growth and provided the Greek economy with a vital push after the credit release. The galloping increase of private, business, and public loans reinforced business activity and offered high incomes for a few years. However, this push that the Greek economy experienced was based on consumption and not on the development of financial sectors that could constantly produce income for the economy and the state. The research examines the Greek banking investment portfolio from 2003 until 2017 based on the portfolio theory of Markowitz. Furthermore, it evaluates its differentiation and examines whether or not has contributed to the financial crisis that the domestic economy faced the previous decade. The findings point out that the negative portfolio returns during the span of seven out of 15 reviewed years and their covariances highlight that the portfolio diversification was not successful according to Markowitz's theory.

The role of public loans in financing business R&D through the economic cycle.

Should governments increase their efforts in R&D public funding during recession periods? The objective of the present study is to compare the effect of public aid to business R&D on technological inputs and outputs through the economic cycle. We contribute to this literature by examining the effect of one specific instrument of direct public support: selective loans for firms’ R&D projects. For the analysis, we consider Spanish firms supported through this kind of instrument for the periods 2002–2005 and 2010–2012. Our results suggest that the hypothesis of full crowding out of private R&D is rejected in both cycle periods, expansion and recession: public support has positive effects on the resources devoted to R&D activities. However, the effect of public support on some technological outputs depends on the cycle phase: firms supported by selective loans during the crisis are more likely to obtain product innovations.

Evaluation of access to finance, market and viability of small and medium-sized enterprises in South Africa

Access to finance and market has been described as a predominant challenge confronting small and medium-sized enterprises (SMEs). Hence, this paper seeks to evaluate access to finance, market access and viability of SMEs. A quantitative research method and a purposive sampling technique were used to select the participants for this study. Respondents from retail, manufacturing, construction and agricultural SMEs operating in Durban, KwaZulu-Natal, were selected to complete the structured questionnaires. 310 questionnaires were returned out of 321 distributed. The study revealed a significant effect of access to finance (absolute value 0.425) and access to market (absolute vale 0.373) on SMEs’ viability with a 5% level of significance. Thus, it was concluded that access to finance uniquely accounted for the larger proportion of the variance in the regression model. Thus, this study suggests that owners of SMEs should pay greater attention to access to finance in running their businesses, and the Government should aid SMEs to market their products and keep their businesses viable. Public loans or the government supported loans should be made available for SMEs with soften requirements in order to stimulate economic growth.

Risk-contingent credit for sovereign disaster risk finance

After natural disasters, governments in developing countries often depend largely on humanitarian aid from donors and Development Finance Institutions (DFI). At the same time disaster affected developing countries repay public loans to donors and DFI (ODA loans). It is, hence, plausible to assume that risk contingent credit (RCC) which is widely discussed in agricultural and development economic literature might also bear potential for sovereign disaster risk finance. RCC allow a partial debt relief if ex ante defined risk events (e.g., natural disasters) occur. There would be especially potential for RCC if ODA loans are not risk-contingent. This study therefore tests for the countries of the West African Economic and Monetary Union (WAEMU) and based on panel data estimations with natural disaster, humanitarian aid, and public debt repayment data 1) if WAEMU countries depend on humanitarian aid after natural disasters, and 2) if in disaster years partial debt reliefs are granted with ODA loan repayments. The study finds that in disaster years WAEMU countries depend on humanitarian aid which is provided but with a slight delay after the natural disaster has occurred. Furthermore the study finds no evidence for natural disaster-related debt relief on ODA loan repayments in WAEMU countries. Hence WAEMU countries continue repaying ODA loans in disaster years whilst at the same time they receive humanitarian aid. The average ODA loan repayment in the investigated period for the WAEMU countries would be sufficiently high to provide WAEMU governments with enough means to respond to natural disasters. RCC could, hence, be an interesting disaster risk financing instrument for WAEMU countries. The development of disaster contingent financial instruments such as RCC was highlighted by the United Nations, the International Monetary Fund and also the 2018 G7 summit.

Єврейські жінки-ремісниці в Українській СРР у 1920-х рр.: боротьба або адаптація?

Introduction. The article examines the scientific problem of the participation of Jewish women in the industrial labor, in particular in handicrafts. The situation in the Ukrainian SSR in 1920s was taken as the basis for the research. Novelty. Relevance of the research is determined by the non-disclosure of this topic in the scientific works of the Ukrainian and foreign experts. Purpose of the article is to disclosure the peculiarities of the participation of Jewish women in the handicraft industry in the 1920s. Methods. The source base of the study is the statistical data of the censuses took place in the Russian Empire and in the USSR, specialized surveys of economic activity of Jews before and after 1917, as well as archival materials. Author conducted a comparative analysis of the involvement of Jewish women in artisanship in the Russian Empire and the USSR (Ukrainian SSR). Results. It has been concluded that the main reasons for the employed of Jewish women in handicrafts in both empires were economic. The peculiarities of work of Jewish women in handicraft production, their age and professional structure are revealed. Author made a conclusion that during the multi-vector economic policy of the Soviet government (war communism, NEP, industrialization) in the 1920s, Jewish women artisans were forced to wage a daily struggle for survival and confront many problems. They are following: arbitrariness of authorities, especially during taxation; lack of raw materials and access to public loans; high competition in the environment of artisans and with the factory industry; combination of work with raising of children; low level of education and mechanization of labor, etc. ORT provided significant assistance to artisans, but it could not meet all the needs of artisans in equipment. Conclusions. The Soviet government’s policy on the cooperation of artisans posed a dilemma for women artisans: to unite in joint enterprises (artels) or to join the ranks of workers in various enterprises, mostly industrial. Crafts especially related to fabric processing, were abandoned mainly as additional underground earnings.

Is Ex-Post Fiscal Support to PPPs Sustainable? Analysis of Government Loans Granted to Shadow-Toll Roads in Spain: A Case Study

Budgetary constraints are prompting many governments to encourage private financing of transport infrastructure through public–private partnerships (PPPs). Fiscal support measures are often used to improve the financial feasibility of PPPs and to rebalance the economics of contracts to compensate for government-imposed changes. In the latter case, information asymmetry, political haste, and lack of competition may lead to poor government decisions in establishing support measures. Furthermore, lack of government support may lead to early termination of contracts and non-implementation of projects with high potential social benefits. This paper analyzes the awarding of subordinated public participation loans (SPPLs) to 10 brownfield shadow-toll highway PPPs in Spain after the government imposed additional works. It is hypothesized that, given the political importance of the projects and the viability problems they soon experienced, the government may not have set out the terms of SPPLs efficiently. This paper evaluates the financial and social impacts of awarding these loans to three of these projects to assess whether the government’s decision to support them was justified from a sustainable perspective. The results show that, while the government’s decision was reasonable, the design of the SPPL and its awarding conditions should be improved to ensure the public interest.

Determinants of Savings and Community Loans in Ngawi District, 2010 - 2018 A Macro Economic Approach

This study aims to analyze (1) the effect of income on community savings; (2) the effect of savings interest on community savings; (3) the effect of savings on community lending (4) the effect of loan interest on community lending; (5) the influence of external funds on community lending; (6) the right theory is applied in order to increase the receipt of savings and lending to the people of Ngawi Regency. This research is a type of quantitative research. The unit of analysis in this study is inter-time development data on the amount of savings and public loans, the determination of the interest rates for savings and loans on average per year, external funds, and income in Ngawi Regency during 2010-2018. Data analysis techniques using multiple linear regression in the form of log-linear. The results of the study found that: (1) Revenue did not have a real impact on the savings of the people of Ngawi Regency. (2) The determination of savings interest does not support the receipt of savings from the people of Ngawi Regency in BRI and Bank Jatim. (3) Savings can increase community loans in Ngawi Regency. (4) The policy for determining loan interest rates carried out at BRI and Bank Jatim is less able to have a real impact on the distribution of loans to the people of Ngawi Regency. (5) External funds are able to encourage the fulfillment of Ngawi Regency community loan disbursement. (7) Savings and less interest can be used to increase the savings and loans of the people of Ngawi Regency. This shows that the right theory applied to increase the receipt of savings and lending Ngawi Regency is Keynes's theory

Take it to the (public) bank: The efficiency of public bank loans to private firms

Abstract Incomplete capital markets and credit constraints for small and medium-sized enterprises (SMEs) are often considered obstacles to economic growth, thus motivating government interventions in capital markets. While such policies are common, it is less clear to what extent these interventions result in firm growth or to which firms interventions should be targeted. Using a unique dataset with information about state bank loans targeting credit-constrained SMEs in Sweden with and without complementary private bank loans, this paper contributes to the literature by studying how these loans affect the targeted firms for several outcome variables. The results suggest that the loans create a one-off increase in investments, with long-term, positive effects for sales and labor productivity but only for firms with 10 or fewer employees. Increased access to capital by firms can therefore produce increases in economic output but only in a specific type of firm. This insight is of key importance in designing policy if the aim is to increase economic growth.

On government-created credit markets for education and endogenous growth

Interest in public loans to fund (higher) education has been increasing in the last decades. This paper explores the general welfare properties of government-created credit markets for education in a three-period overlapping generations model with physical and human capital. It shows that the mere existence of public credit markets is second-best in nature, and cannot decentralize the optimum. Achieving the first-best “Golden Rule” balanced growth path requires a government loan system that lends the amounts required for optimal investments in education and an optimally chosen pure pay-as-you-go social security system. Student loans and pensions thus appear as two inseparable elements of the policy that maximizes social welfare.

The “Golden Rule” as a New Financial Management Tool for Local Governments

The implementation of the so-called “golden rule” regarding the fiscal management of the sub-sector of the local-self-government (LSG) constituted a reaction to the growth of the debt within the sector of public finances and an attempt to curb the LSG deficit. In this manner the Legislator wanted to balance the budget regarding operating revenues and the operating expenditures and to allow for the use of public loans, thus permitting the generation of the debt only in regard to capital expenditures. The authors of the article evaluate the validity of introducing the new regulations, subjecting the “golden rule” to a positive critique and forming requirements for changes and improvements based on solutions to this problem utilized in other countries. An empiric data is presented that shows the consequences of overloading the LSG with the effects of the growing level of public debt in a situation when the responsibility for the majority of the debt (more than 90%) rests with the public governance at the government level. The authors also put forth the thesis that the implementation of the more restrictive rules on the central level is also necessary to optimize the entire system of public finances.

Financing for new technology-based firms in Brussels

New technology-based firms are sometimes faced with financing difficulties and are able to count on various schemes and public aid to help them in their start-up phase. In this article, through case studies, we examine the ways in which entrepreneurs in Brussels have obtained financing and, in particular, their use of public schemes. We end with the description of an efficient system in which, nevertheless, the numerous grants are sometimes diverted from their objective. Based on these results and a focus group with stakeholders in the field, we discuss recommendations by insisting on the importance of a revision of grants in order to limit deadweight effects, a refinancing of investment structures and public loans, and better general coordination of these schemes.