Resources to finance investments in increasing the role of commercial banks and investment
resources to finance investments in increasing the role of commercial banks and investment
again funding of investment banks. as practice shows, the long-term funding of programs is not spontaneous, but it means, analysis and control of ongoing operations of the company. To meet these demands, unfortunately, not all companies seem to be ready. When these conditions are met, banks are active participants in the process of strategic plans and financial contributions from business investment.
Special attention by the management of the business such as commercial banks is necessary, project financing, our minds, we need the administrative and financial support from government, we mean the condition that for a successful rescue of investment issues it is necessary to create financial and industrial groups, and to keep the unions that represent them in their original form again to make the large financial capital market and the convergence of bank capital in an industry. 1 This figure will rise to the growth of capital spending in the economy and growth to the efficiency of investment. Of course, the creation of such unions are effectively supported by commercial banks, but it is interrupted by a condition such that the groups are created today that activity in a non-registered and nobody cares their application. This is supported by the logistics incomplete, low levels of development of the institution of private property to keep interruptions in the implementation of agrarian reform, the provision of accounting calculations of the financial structure in an incomplete form and existence of several statements working towards the creation of unions at the bottom to the industry. All the above can be solved immediately, as indicated by the manipulation of very low investment and on the basis of their recruitment by Parliament in a short period of time.
It is worth mentioning that there are sufficient conditions for increased financial investment in the economy of the bank site because of the existence of cash flow available. It is important that these funds were influxed and a wise use of the targeted organization, expressed through the transformation of the investment policy must be created. An important role is for investment policies and proper definition of the tactic. is
What is the problem before the banks? It is also worth mentioning that the numbers of commercial banks are problems with the implementation of their investment, prevented normal operation. We believe that banks are working on the financing of investment projects, in fact, just put a unit in the private school system. We consider the following to prevent their working conditions:
· existence of a marketing center for investment projects, a coordinating body across the country, which would depend on the regulations in the estimates designing financial investment play,
• O unacceptable information on the position of a prospective borrower or investment institution;
° refusal of creation is the deposit, today
• Low level of development of mutual funds
• the lack of state investment bank, organ specific total funding allocation of investment and thus spontaneous functions investment banks to work abroad under the conditions of market economy under Georgia’s commercial banks.
It is also worth mentioning that there are many economic factors that negatively affect the realization of investment projects for banks and not previously treated nontransiency define the expected risk of danger that these factors. This broadening of the working world in investing activities of commercial banks objectively necessary: the greater independence and rights to commercial banks, the growth of the effectiveness of long-term investment and income growth, relatively preserved with those of short-term financial transactions, determining the kinds ll process supported the government side, and then the additional declaration of blind faith and strength of the activities of the banking system.
About the necessity of providing structural institutional reforms in the country. To ensure stability of the banking system and institutional reforms min goal is to prepare a new stage of banking sector development are, for the first place. The need for these reforms is the state of financial markets conditioned by the country. New institutions such as works of D. Nort mentioned – the winner of the Nobel award, are formed where the company sees the possibility of making a profit, which is impossible during active institutional system. investment banks in the system Maximum number field on the above financial markets possible. This is the result of a natural evolution of competition, because it solves the problems of optimal use of financial resources. Many such characters in the field is reduced to stop the crisis in the country.
Many of nature-the field of banking system is characteristic of most developed countries (U.S., Western Europe, Japan) and also for countries with transitional economy based on sound economic growth in the last decimal (China, Poland, Brazil and others) is applied. These numerous banking system is in the field of options for the use of different types and forms of financial services in the credit department of the economy.
In this system, the state creates various mechanisms of artificial reduction of competition among financial institutions. An obvious example is the separation of credit in commercial banks and investment in the U.S., reducing the prohibitions of the countries in the realization of many years of investment credit and the separation of the state bank in a separate category.
During development of small businesses in Georgia. Creation of the benefits plan for small-scale industries, primarily governs the creation of competition in a position external conditions of the investment, which will certainly be in the activities of the country’s banking system can be provided. should also mention that after the development and improvement of the economy in the future, perhaps these activities may not be necessary, but in conditions of transitive economy, its importance can not not be given special consideration. It is, of course, is that a lot of ground in the financial sector that formed on the same ground as the base sequence in the opposite effect. Mentioned relationship between the many stakeholders in the financial field and competition is expressed that it helps create special packages for investment in the position of an embryo and its development.
breve government regulation of the investment process. for many in the “principle of the financial market, the state must ensure that such a system for regulating investment activity, the” peaceful “coexistence of various financial institutions, regardless their size and specialization. Banks from each category must “act” in their marketing “ball”, while bank regulators at various levels of government, it is stated, the provisions of Regulation after. Private, our mind It is important to recognize and regulate areas of these banks using capital from government agencies. Under the conditions of many in the system in the field with competition in the financial markets ‘fair’ characters and therefore, such a system is much tighter. Personally, with many in the system on the ground in combat conditions, while programs of special state funds through the creation of a system specialized public banks using public funds can be effective. In this case, the goal of using state resources lobbying by commercial banks is not allowed. For example, Germany has been implement projects of the ecological, agricultural, construction and other specialized areas by commercial banks. There are special loans in the banking system from other developed countries (Japan, Italy, France and so continued). This practice greatly reduces the risk to fight against the misuse of state resources in terms of competition.
One of the main factors that degrade the effective development of real sector of the economy , is the irrelevance of financial capital needed for regional operations. basic volume of financial resources the company has accumulated in the middle. Such a situation is justified in some way for the state, but it is completely insoluble in part of the private sector.
for various estimates
, non-regional banks control more than 20-30% of the contribution of financial resources from regional companies, and this development severely impaired by local banks and companies. To solve the problems of lack of resources for lending to the real sector of the economy of a small, regional banks, a related question, must be considered in conjunction with the outflows from the region . The solution to these problems through administrative activities is not possible, treatment of economic activity involved is necessary. We refer to the condition that, with the growth of the share of revenue from the local budget, it is important to define responsibilities budgets of local creations in the development of regional economy. Thus, fiscal federalism, this necessary condition, which guarantees one hand, the formation of a balanced financial services market and not another, development of investment activities on the basis of legislative basis.
What do you need for fiscal federalism in the financial market create equal conditions of competition in conditions of fiscal federalism will lead us naturally to the formation of many in the field system of the financial market. This process led to the creation of large financial centers based on the newly formed banks and existed. For example, the development of regional banks within the concept of banking sector development, promotion, economic growth potential o Regional Financial. On the modern stage of development conditions in the area of bank branch to be extended for more more. Today, banks usually offer sources of core funding of capital inflows in the way “mid-region,” after the transition to real federalism many banks into the field turning into banks, sources of financial capital flows between regions.
It is also worth mentioning that it is important to stress the importance of banking, which are due to the formation of credit relationships urban and rural areas, mutual recognition and insurance companies and associations of construction loan expressed growing. All this in Georgia must be in the process of predicting the evolution of the banking system and prepare accordingly, a suitable logistical advantage for conditions Development of banking for small and medium enterprises, since the formation of an efficient financial system at the regional level is impossible. Thus, if one takes into account the fact that the portfolio of investments not overcome in the structure of the common heritage of Georgian commercial banks 1% for the first of January 1999 and 4% for January 1, 2005, said that trends in investment portfolio growth.
attract foreign investment. globalization and internationalization of the world arise in industrial relations to the growth of the role of foreign investment, financing of investments.
The nature and types of foreign investment. Foreign investment is own resources pipes, which are taken from a country abroad and invest in a particular industrial activity, percent for the purpose of manufacturing and industrial profits received. Foreign investment can be realized in various forms. In the analysis of this form, we can distinguish methods of approach to the classification of investments, men use their separation from each other for the objects, purposes, on investment, forms of property investment resources, risks and other characters. Decrease the need for foreign investment is defined statement of the specific number of features for classification of such investment.
For example , foreign government, private property and are combined according to the forms of investment resources.
Public investment, the resources of the state budget, which led the foreign by a government resolution or organizations. These funds may support the face of state funds, loans, grants ot.
Private (NGOs) are investment funds from private investors placed in the objects that are outside its borders.
Investments Abroad joint application by the resources of private investors and government.
depending on the nature of use, foreign investment and loans industrial combined.
industrial investment is falling, directly or indirectly in the affairs of one kind or another for taking certain rights for the production of such dividend income. Loans are the distribution of funds from the loan condition for receiving a whole percent.
An analysis of foreign investment, distribution right, portfolio and other investments of great importance. The movement of foreign investment in the part of the International Monetary Fund and the methodology balances tax countries are back in this section.
runs on the legal situation of foreign investment in Georgia. as shown in “investment” in the chapters Previous to express a conceptual long-term investment capital for a fixed amount for profit. In the bottom of Georgia is “to support and guarantees of investment activity” investment as the most valuable each property and the intellectual nature or the law, which is invested in order to facilitate profit and are used in industrial activities, whether on Georgian territory. It can draw on both internal (within countries) external (foreign) sources.
There is much attention paid to the investment environment (climate), which means it was the real conditions in the country for investment. It defines an attraction intense or lower foreign capital for investment in the long term. It is, on the condition of the investment environment can be an advantage if the advantage that each investor before a concrete step provided . The fundamental analysis of investment climate in the country have been and predict risk factors are the fundamental objective f any suitable investors.
So, it is difficult to say, this is certainly the situation present in Georgia is good or bad. It would be better if we say that as an advantage (stimulant), conditions have prevented the country.
Foreign investment in Georgia are barred by the constitution, by the small “to support and guarantees of investment activity “and a two-page agreement on the promotion and protection of investments. Today, Georgia has signed agreements with more than 23 countries on mutual assistance and protection 111 countries and with -. are on the prevention of two or taxation
The legal principles and guarantees of their protection of the realization of local and foreign investment in Georgia is defined by the bottom of Guarantees and activities support for investment to be used for the local and foreign investors the same rights. Private, when making investment activities and industrial rights and interests of foreign investors should not be lower than those of individuals and legal authorities. be
at the same weak person or entity according an international organization that will bring investment to Georgia as a subject of investment.
It is worth mentioning that after the payment of taxes and charges, a foreign investor acquires the non-repatriation reduced overseas earnings from investments and other liquid funds, which can be reduced on the basis of depression – after the court bankruptcy, crime, or not fulfilling civic duties. The foreign investor has the right to take foreign property under his ownership.
Low Georgian “support and investment guarantees. “Positive and negative sides. Georgia low” to support and guarantees of investment activity “is that prevention and reduction of the provision of investment, protect the security, the nature tamper-proof means of investment and compensation for investments in the catch limits that low. The compensation that the investor is, in case of investment proposed by him to the real market value of the investment made for this time the match is drawn. Compensation should be paid not to hinder that, and it is necessary that the investor’s loss from takeoff until the payment of compensation mounting concern.
It should be noted that a new law, said the deteriorating conditions of any investment made in this bottom is not on the systems already implemented is dispersed, ten years after his recruitment. In such cases, the investor realizes its activity as a function of the low numbers until the new one is to implement the law.
A between foreign investors and state bodies to wonder if the type of decision is not defined by two agreements to the court in Georgia or the international center of investment disputes. In arguing the case when the case is not explained in the international center of investment, foreign investors are entitled to institute other environmental or an international arbitration body, the rules of arbitration is based on enforcement and international agreements on depression Commission International Trade by the United Nations. arbitrageur court of international trade in Georgia Details mouth December 11, 2000.
According to the statistics show, were the most attractive sectors for foreign investors, the production of oil and gas, energy, telecommunications and food, according to statistics of the events of recent years . Among the major investors are companies such as Frontera Resources Corporation(USA), over 30 million dollars invested in oil Georgian; Metromedia International - investment in Telecommunications $ 40,000,000 - Pernod Ricard (France) – investment in the production of alcohol. AES (USA) – Investment in sales and production of electric power
The comparison shows that we learn to overcome a lot depending on the potential hydro-energy, Georgia, rich countries in the so-called “white coal”, like France, Italy, Spain, Sweden, Romania and other countries. Although convenient, less than 15% of the real possibilities that are used, which gives great opportunities for foreign investment in Georgia.
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