Countercyclical Financing as a Tool for Facilitating Investment Activity in Russia: An Overview of Approaches

Aim. The presented study aims to investigate the use of the project financing mechanism to increase the investment activity of businesses and to identify opportunities for the allocation of cyclical risks and the corresponding development of project financing conditions.Tasks. The authors briefly overview the investment climate and investment activity of large businesses in Russia; provide a general description of the project financing mechanism in the implementation of investment projects and the allocation of risks among participants; consider the factor of price volatility and the proposed structuring of project financing with allowance for potential changes in prices for the project’s products.Methods. This study uses general scientific research methods (analysis, synthesis, induction, deduction), including analysis of public information through the example of major Russian companies, analysis of the key indicators of investment activity, analysis of risk allocation options in the financial flows of projects. Specific methods of financial analysis are also used to examine the results of the implementation of investment projects.Results. The key indicators of investment activity of the major Russian companies are presented. The possibility of using the mechanism of project financing and risk allocation among participants is determined.Conclusions. The investment activity of a considerable part of large Russian businesses is moderate. At the same time, there is a huge potential for growth using either internal funds (profits, accumulated cash balances) or project financing instruments. An example of using the mechanism of accelerated repayment of debt financing is provided.

ANALISIS PEMBIAYAAN DENGAN PRINSIP MURABAHAH PADA PT. BANK SUMUT SYARIAH CABANG MEDAN

This study discusses the analysis of financing with the principle of murabahah at PT. Bank Sumut Syariah Medan. The murabahah contract is the sale and purchase of goods at the original price with an additional profit agreed upon by the seller, who must notify the price of the product he purchased and determine a level of profit in addition to it. The research method used is descriptive qualitative with data collection techniques through interviews and observations. The results showed that the murabahah financing mechanism at Bank Sumut Syariah Brigjen Katamso Medan can be used by all human beings where the type of business must remain in accordance with Islamic sharia and in order to minimize the risk of default the bank provides action in the form of supervision.

Strengthening the WHO in the pandemic era by removing a persistent structural defect in financing

Background The WHO’s success in its vital role is constrained by inadequate financial support from member states and overreliance on earmarked voluntary contributions, which erodes autonomy. The agency’s broad functions, including coordination among 194 members, cannot be performed by any other entity. However, despite experts’ well-articulated concerns that the agency’s legitimacy and authority in global health matters have been undermined, a decades-long freeze on member assessments means that WHO priorities are disproportionately influenced by a few powerful donors. A structural defect To overcome inertia in addressing well-known limitations, it may be helpful to consider the weaknesses in WHO’s financing mechanism as a persistent structural defect. This perspective strengthens the focus on corrections needed to remove the defect. In our view, the main features of the structural defect are the self-imposed constraints that foster the perception—if not the reality—that the agency’s legitimacy is compromised. These constraints include WHO’s inadequate level of financing; lack of direct control over 80% of its funds; and unbalanced participation, such that over 60% of financing originates from only 9 donors. With renewed commitment, however, member countries can remove these constraints. Removing the structural defect To meaningfully strengthen structural integrity of the financing mechanism, restore WHO’s autonomy, and minimize concerns about wealthy-donor supremacy, it will be necessary to define specific requirements and implement restrictions on financial contributions. We make five recommendations, including tripling total financing; ensuring that 70% or more of financial support derives from member assessments; limiting contributions from individual members to a maximum of 4% of total WHO financing; and limiting donations from individual partners to a maximum of 3% of total WHO financing (1% for earmarked donations). Although some might consider these measures impractical, they are justified by the magnitude of the crises the world faces, by member states’ increased economic strength in recent decades, and by the importance of shielding the WHO’s financing structure from perceived neocolonialism. This necessary step calls for an adjustment of priorities: the higher level of assessed contribution—from nearly all members regardless of wealth—required to reach the proposed targets would still represent only a small fraction of most members’ annual military expenditures. Conclusion The COVID-19 pandemic, with its devastating toll on human life and global economic stability, presents an opportunity for reflection and refocusing. Realigning WHO’s financial structure to its founders’ vision, as proposed here, would likely safeguard both the agency’s autonomy and member states’ trust, while alleviating concerns about undue influence from powerful donors. Removing the persistent structural defect in financing would empower WHO to lead and coordinate global response to meet the inevitable challenges of the coming decades.

PENERAPAN AKAD MURABAHAH TERHADAP PRODUK PEMBIAYAAN KPR iB BAROKAH DI BANK JATIM SYARIAH CABANG KEDIRI

The development of islamic banking in indonesia is a manifestation of the public’s demand for an alternative banking system which in addition to providing sound banking or financial services and also complies with sharia principles. In economic develoment activities, the financial sector is one of most important sectors in the success of an achievement in the indonesian economy. One of which is the kediri branch of the islamic bank of East Java, which provides financing for people who want to have a house namely the KPR IB Barokah financing. Kpr Ib barokah is short, medium or long-term finance the purchase of residential houses (consumptive) and renovation,both new and used ind developer and non – developer environments, in accordance with sharia principles and the contracts used are murabahah,IMBT and MMQ contracts. The formulation of the problem is about how the financing mechanism for Kpr Ib Barokah and whether the murabahah contract in Kpr Ib Barokah is in accordance with sharia principles.Key word: Islamic banking, KPR Financing,Murabahah

Application of Project Financing Mechanism for Housing Construction for the Purposes of Improving the Quality of Life in Russian Regions

Housing conditions and the possibility to improve them are one of the main indicators of the standard of living of the country’s population. State methods of regulation in this sphere must contribute to minimize the risks of citizens and ensure their safe investment in the purchase of housing under construction. For these purposes the mechanism of project financing — the system of financing the construction of apartment buildings through escrow accounts was developed and introduced.The subject of the article is an analysis of the introduction of escrow accounts in relation to Russian regions. The statistics presented by the financial development institution in the housing sector Dom.rf allows to detect a positive dynamics of citizens’ trust in development companies, which finally is reflected in a significant improvement of the quality of life of Russians. Thus, with the growth of citizens’ trust in contractors — developers of apartment buildings, their interest in buying better quality housing grows. Besides, the mechanisms of project financing weed out unfair builders, leaving only reliable developers on the market, which raises the qualitative characteristics of new projects and gives extra stability to the market.

Project financing in the investment and construction complex

The problems arising in organizations during the process of investment activities have been considered. The results of financing and implementation of projects and programs have been analysed and interpreted consistently. The issues of expediency of using the profitability indicators of the capital or assets of the company, which requires for the project implementation, have been touched upon. Approaches to the possibility of using the project financing mechanism, have been substantiated. Attention has been paid to the positive and negative aspects of the application of project financing for the company investment activities. It has been noted that project financing is usually used in the implementation of large investment projects, which combine the economic interests of the state and private investors. Particular attention has been paid to the issues of project and program management within the digital environment in order to provide a unified information base. The analysis of possible risks when using the project financing mechanism has been provided and the approaches to influencing the emerging risks have been defined. The result of the study was the formation of factors affecting the effectiveness of the project financing mechanism in the implementation of investment projects and programs.

Development and financing trends of higher education in the Republic of Moldova

Insufficient financial resources, necessary to carry out the educational process with maximum efficiency, are among the numerous problems faced by higher education at the present stage. In this context, especially in the last decade, universities are concerned with identifying alternative sources of funding to those in budgetary funds, which have a temporary character and endanger the predictability and sustainability of training in the institution. The main aspects to be considered in the present article are: a) argumentation of the defining role of higher education institutions in the development of human intellectual potential and the creation of an intelligent society; b) analysis of the higher education evolution and identification of trends c) reflection of the financing mechanism of higher education in the Republic of Moldova. As a result of the study, some considerations are proposed regarding the improvement of the system of indicators for evaluating the performance of higher education institutions included in the new methodology of their financing.

SDG 3 and financing instruments in Austria and Ukraine: Challenges and perspectives

This study aims to conduct a comparative analysis of the SDG in healthcare achievement in Austria and Ukraine and to determine possible lessons for Ukraine based on best EU and world experiences. To identify existing challenges and perspectives a comparative analysis of key indicators of healthcare expenditures and health financing systems in Austria and Ukraine was carried out. Results indicate that in Ukraine there is a substantial lack of public funding for healthcare (only 682 US dollars per capita in 2018), a poor share of voluntary health insurance (less than 1%), significant amounts (on average 50%) of expenditures of the population in general spending on health. On the contrary, in Austria, there is sufficient public funding for healthcare (5,879 US dollars per capita in 2018), more than 5% share of voluntary health insurance, moderate amounts (on average 25%) of expenditures of the population in general spending on health. Austria’s experience as an EU-member country with a successful example of a financing strategy for the healthcare system is a sound example for Ukraine. The alternative financing tools (e.g. result-based financing, impact investment, public-private partnership) can be used as an additional financing mechanism of healthcare funding in Ukraine. The use of these instruments along with the improvement of the fiscal policy, social security, and governance based on Austrian experience can cut the existing financing gap to achieve SDG targets in healthcare in Ukraine. AcknowledgmentThis study is financed equally by the Austrian Federal Ministry of Education and Science and the Ministry of Education and Science of Ukraine.

CREDIT ACCESSING AND FAMILY FARMING: AN EVIDENCE FROM BURKINA FASO

This research focuses on the issue of financing family farms in Burkina Faso. To this end, a survey of 275 family farms was carried out in 2020. The research results revealed that the needs of family farms are not completely satisfied. The credits granted mainly concern small amounts. Productive investments which constitute medium and long-term investments capable of inducing significant improvements in agricultural production are almost unsatisfactory. Moreover, analyzes have shown that income determines access to credit. This factor reflects at a certain level the capacity of family farmers to provide the financial guarantees required by microfinance institutions. The current conditions of banks do not favor the development of the agricultural sector and the improvement of the living conditions of the populations in rural areas. It is, therefore, necessary to rethink the financing of agricultural activities and to define a long-lasting and sustainable financing mechanism. Keywords: Credit Accessing, Family Farming, Financing, Burkina Faso.