IMPROVING THE PROVISION OF STATE GUARANTEES UNDER CREDITS OR BONDED LOANS RAISED FOR INVESTMENT PROJECTS IMPLEMENTATION

• Published in: Modernizat͡s︡ii͡a︡, innovat͡s︡ii, razvitie Vol. 6; no. 2; pp. 36 - 42
• Main Author: Sanginova, Lola D.
• Format: Journal Article
• Language: English; Russian
• Published: Nauka 01.09.2015
• Subjects: debt instrument; investment projects; project finance; public debt; public-private partnership; state guarantees; state-financing backing
• ISSN: 2079-4665; 2411-796X
• DOI: 10.18184/2079-4665.2015.6.2.36.42

Importance: Under current conditions, the Russian economy needs investment resources to ensure sustainable social and economic development. One of instruments of state-financing backing that can be used to support capital intensive, economically viable, financially and socially efficient investment projects that create "growing points" are state guarantees of theRussian Federation.Objective: The objective of this study is to identify possible ways to improve the requirements and procedures of providing state guarantees of theRussian Federationwhich contribute to the increase in the quantity and quality of investment projects of high social importance. Methods: Through the use of general scientific methods, analysis and synthesis, induction and deduction the possibility of creating a more attractive environment for principals is analyzed, measures to reduce the risk for public legal entities in providing state guarantees of theRussian Federationunder credits or bonded loans raised for investment projects implementation.Results: Principles of state guarantee support that ensure the interests of both the principals and the guarantor are defined. The basic directions for improving the mechanism how state guarantees of theRussian Federationsupport investment projects are justified. These directions include increasing availability of obtaining state guarantee support by lowering the cost of investment projects for which the state guarantees may be provided; reducing time of decision making on granting a state guarantee; increasing the creditors’ responsibility for a qualitative assessment of the creditworthiness of principals and investment projects; changing the methodology for assessing the social efficiency of investment projects; increasing the information transparency of provided state guarantees of the Russian Federation.Conclusions: The main result of this study is that under current conditions of economic turbulence state guarantees of the Russian Federation under credits or bonded loans raised for investment projects implementation can create an attractive environment for business only on mutually acceptable and long-term basis which corresponds to the underlying principles of public-private partnerships.