Financial and investment design: principles and participants

Abstract

In the modern economy, financial and investment planning is one of the most effective mechanisms for implementing large-scale capital-intensive initiatives. Despite the interconnectedness of the processes of resource accumulation, development of business plans and banking support (consulting or direct preparation of documentation), in the scientific discourse these aspects are often highlighted as separate elements, rather than a single integrated system. In a broad sense, financial and investment planning appears as a mechanism of interaction between stakeholders regarding the resource provision of capital investments.

            Implementation of the initiative is ensured by mixed capital. The structure of the budget is determined through the assessment of liquidity, production threats and debt service standards. Along with classic investments and loans, hybrid forms of financing, interstate subsidies, MFI resources and trade financing mechanisms are used. Reliability of the model is guaranteed by accumulative funds, priority of payments and insurance of market fluctuations.

In Ukraine, the mechanism of project financing remains a relatively new tool, the effectiveness of which directly depends on the extensive infrastructure of financial intermediation. The shortage of specialized institutions, in particular investment banks and funds, forces universal banking institutions to assume the role of the main providers of this service. Although the practice of investment lending dates back to the late 1990s, it has evolved over the past decades: from primitive provision of equipment purchases to the implementation of complex financial strategies.

The presented article examines the specifics of financial project financing, promising for large initiatives, attracting private capital, venture funds and banks interested in profitable investments. Ukraine also receives support from international organizations for the implementation of projects in the fields of energy efficiency, ecology and SME development. Thus, its development and implementation open access to various resources, contributing to economic growth and innovation.