Project finance as a basis for an effective investment policy

In the modern economy of Russia, the issue of the need for active participation of credit institutions in meeting investment demand through the implementation of investment bank loans and project financing is becoming increasingly acute. At the same time, the presence of a high level of risks that accompany investment projects everywhere in Russia is one of the main limiting factors for the participation of credit institutions in investment activities, and also requires the development of methods for their regulation.

Project financing and implementation of investment projects for the modernization of the domestic economic base of production, has become visible as a resource to overcome the crisis, since the second half of 2008. Carrying out an analysis of the state of investment activity in the Russian Federation, its banking sector, as well as bank financing of investment projects in 2007-2011, it can be said that the loans of domestic banks are at an insufficiently high level.

In the overall structure of investments, banks' loans are 10.4%. For example, bank financing for attracted funds received from the state budget, and in addition, from the resources of higher organizations listed in the table as other, but, in spite of this, bank loans are still the leading source of economic growth. When evaluating the positive qualities of lending, it should be noted that the funds allocated for project financing are strictly targeted.

When considering the data on the volumes of long-term loans extended by the banks of the Russian Federation to enterprises and organizations, it can be said that there is a shortage of long-term resources for investment lending in the banking system, since part of the loans granted for a period of more than 3 years is only 33.0%.

At the end of 2008, due to state support, significant volumes of financial resources were provided on a long-term basis to the leading banks of the Russian Federation (VTB Bank, Sberbank, Gazprombank, VEB), and they became the main ones in solving the problems of economic recovery. It is these credit institutions that give out about half of all investment loans to industrial and agricultural enterprises. In connection with the funds provided, the formation of free long-term resources in the banking sector was observed, but only from state-owned banks, other credit organizations continued to experience difficulties in current liquidity, as well as suffer from a shortage of long-term liabilities.

The world crisis has exposed a set of problems of the modern banking system and as one of them economists call weak risk management systems. Since 2008, project financing in Russia has decreased because the risks of participation of credit institutions in investment projects have increased several fold. Negative phenomena led to an increase in overdue loans. Commercial banks in the current economic conditions began to change their credit policies, tightening the requirements for borrowers to improve the quality of portfolios. Simultaneously, for banks, the primary task was to manage the risks of financed and ongoing investment projects, for which anti-crisis measures were developed.

The experience of credit institutions in the field of crisis management should help develop new methods for reducing risks in the implementation of investment projects, generally significantly advancing the improvement of project financing.

Project financing, as well as research on banking risks and management problems associated with it, is always topical, due to a constant increase in the physical size and structure of risks that are generated in the process of the credit organization's work, and the complication of products and services.