THE ROLE OF EXPORT CREDIT AGENCIES IN THE STATE`S TRADE POLICY FINANCIAL INSTRUMENTS SYSTEM

In the current context export crediting, insurance and guarantee of export credits as state stimulation financial methods of export production have become an organic part of the states` foreign trade policy realization mechanism. Providing state guarantees for an export credit is in many cases a primary condition for obtaining it. Therefore, the importance of state insurance in foreign trade is constantly growing, which, in turn, increases the reliability and efficiency of export operations. Export credit agencies are a highly effective institutional mechanism of state promoting policy. The main advantages and disadvantages of export credit agencies are analyzed. Models of export financing are offered and the cost with the involvement of the export credit agency is indicated. Taking into account foreign experience, the main factors hindering the process of forming an effective system of state financial support for exports are identified and the feasibility of creating a specialized institution to support export activities in Ukraine is justified. After all, with the development of market relations and integration into the European economic space, characterized by the intensity of foreign trade, which is manifested in increasing the number and volume of export and import operations, there is a need to identify and study new economic mechanisms of financial support.

KENDALA PERUBAHAN STATUS BADAN KREDIT DESA MENJADI LEMBAGA KEUANGAN MIKRO DITINJAU DARI UNDANG-UNDANG NOMOR 6 TAHUN 2014 TENTANG DESA

POJK Number 10/POJK.03/2016 about fulfilment rules Credit Bank of People and transformation, BKD to commit a process of Credit Bank of People explain that BKD (Village Credit Agency) an effort reinforcement institutions that have legal entities. In practice, this transformation is not easy, a recurring obstacle among others accordance asset ownership status. This research is study of empirical law with with a socilogical juridical approach, a concept approach, and a legislation approach. The results showed that the constraints of status changes that occurred in BUMDES in Genteng Subdistrict has several factors, including unclear regulations punlished by the government related to the mechanisms of transforming BKD into BUMDES, management of Human Resources (HR) which was not maximized, lack of response and support from the community. While efforts to resolve the status change constraints include the village government giving concrete understanding of the community related to changing the status of the BKD into BUMDES, uniting the vision and mission of the organizer, holding a discussion forum with several layers related and involved in the process of transferring status. While efforts to resolve constraint by Islamic law with holding a consensus deliberation for common wealth which in the end BKD in Banyuwangi Regency agreed to do cooperation between BUMDES which in this case BUMDES together trough PT. BKD Banyuwangi in order to save assets.

A Credit Rating Model in a Fuzzy Inference System Environment

One of the most important functions of an export credit agency (ECA) is to act as an intermediary between national governments and exporters. These organizations provide financing to reduce the political and commercial risks in international trade. The agents assess the buyers based on financial and non-financial indicators to determine whether it is advisable to grant them credit. Because many of these indicators are qualitative and inherently linguistically ambiguous, the agents must make decisions in uncertain environments. Therefore, to make the most accurate decision possible, they often utilize fuzzy inference systems. The purpose of this research was to design a credit rating model in an uncertain environment using the fuzzy inference system (FIS). In this research, we used suitable variables of agency ratings from previous studies and then screened them via the Delphi method. Finally, we created a credit rating model using these variables and FIS including related IF-THEN rules which can be applied in a practical setting.

INSTITUTIONAL AND FINANCIAL COMPONENTS OF UKRAINE’S EXPORT GROWTH

Today, the state policy on export development is being improved and the export support tools are being implemented at the legislative level. Exporting economic entities form the demand for financial services, which would meet current conditions in the international market, as well as allow for unrestricted settlements with foreign counterparties, available financing of working capital and insurance provision of export operations in order to increase the competitiveness of such entities. The author substantiates importance of the centralized focus of export support efforts, determines the concept of “trade financing and insurance” as a source of resource and institutional support for export operations and highlights the positive aspects and problems arising from financing of export transactions and settlements with counterparties. The state of international cooperation on export issues and trends of the world trade are briefly mentioned. As is known, the Export and Credit agency (ECA), an institution for insurance and export support, has recently been established; however, its place, management, tasks and resource base are still being determined. Therefore, the article proposes a basic schematic model of the activities of this institution. The author emphasizes that increasing the competitiveness of Ukrainian exporters and strengthening their confidence in them in the international market are especially important given the world trend of “de-risking”. De-risking is the limitation of cooperation with certain categories of clients or states (which Ukraine is sometimes included in) to avoid the risk of financing illicit activities, a person under sanctions, terrorism, and the like. The focus of further research the author suggests addressing such issues: (i) interaction of the state and private sectors with support of exports; (ii) determination of the product range of financial institutions servicing the subjects of foreign trade, as well as the ECA; (iii) impact of sanctions and restrictions on Ukraine’s foreign trade relations. Accelerating the development of exports and overcoming obstacles when concluding the external trade agreements and settlements will ultimately help Ukraine to take a niche among the world’s exporters and strengthen its own financial security.

ANALISIS YURIDIS TERHADAP PENGELOLAAN ASET BADAN KREDIT DESA PASCA BERLAKUNYA PERATURAN MENTERI DALAM NEGERI NOMOR 1 TAHUN 2016 TENTANG PENGELOLAAN ASET DESA

As a backbone of the traditional economy before the nation of Indonesia's independence is the economic system Lumbung Desa and Village Bank, the growth of the economic system that is since the Dutch Indies heritage. With the development of the era, Village Lumbung and Village Bank merged into one that is in the form of Village Credit Agency (BKD) which is under supervision by OJK. This can reflect that the existence of BKD which is Lumbung Desa and Bank Desa still needed by society, especially society in Rural. But the practice is internal BKD problems, one of them is the problem of assets, assets BKD is one important element in the implementation of Savings and Loans operations as well as wealth. Assets or goods are economic potentials owned by BKD. Economic potential means financial and economic benefits that can be obtained in the future, which can support the role and function of BKD as a provider of public services to the public. Asset problems in addition to melting into one with the Village, many found in some areas that assets owned by BKD has changed hands to individuals. This is because, BKD paradigm belongs to the Village and Village Assets are the assets of the Village. The disbursement of these assets is complicated by the emergence Law No. 6 of 2014 on Villages and Regulations of the Minister of Home Affairs No. 1 of 2016 on Village Asset Management.

Mechanisms for pursuing the economic and environmental interests of Ukraine in Forest and Woodworking industry

Introduction. Interim results of a full log export ban have evidenced the benefits of such a solution for the national economy and the environment. However, despite obvious achievements, the situation in the wood industry on the whole remains disadvantageous, in particular due to the massive smuggling of the unprocessed wood disguised as fuel wood. Aim and tasks. This article is intended to identify and substantiate legal and regulatory measures of the governmental policy aimed at the intensification of log export ban effects in Ukraine, as well as to give a forecast of macroeconomic effects of the realization of such measures in the mid-term run. Research results. The inadequate institutional environment and the high level of corruption in the public sector form a favorable environment for massive smuggling of wood raw materials subject to a moratorium. Nevertheless, author strongly disagrees with conclusions that a log export ban, as a fragmented tool, totally failed in performing its mission, namely to stop the uncontrolled logging and forest export from Ukraine. One should remember the trade being a two-way process, the responsibility for smuggling should be also assumed by the destination countries which import unaccounted wood originated from Ukraine. It is necessary to urgently strengthen the effect of a log export ban through closing loopholes which are used to export unprocessed wood under the guise of the another associated commodity groups. Conclusions. Vision on regulatory measures system, which is called to strengthen the effect of the log export ban, embraces: a) criminal responsibility for avoiding or deceiving customs control when bringing banned unprocessed wood across the border of Ukraine; b) fuelwood export ban for an eight-year period; c) limitation of unprocessed wood volumes for domestic consumption at the level of 25 million cubic meter a year. In the long-term perspective, to establish an effective and self-sufficient forest industry in Ukraine, it is necessary to strengthen ban on the export of unprocessed and fuelwood through a number of systematic measures: a) creation of the Ukrainian Export and Credit Agency; b) introduction of the “reasonable import substitution” policy; c) free connection to utilities for the companies; d) introduction of industrial parks with investment incentives for new manufacturing.

Game Analysis of Risk Factors under Export Credit Insurance Finance

Export credit insurance plays an important role in promoting exportation, and thus it represents a guarantee of payment receivable for exporter. It not only offers a good way to disperse and release risk caused by uncertainty of foreign countries and importers’ credit, but also inspires a good finance support for exporter. Export corporations can apply loan from banks easily with the guarantee of export credit insurance. Characterized with lower threshold, export credit insurance finance(ECIF) becomes a good funding choice especially for small and medium companies and brings considerable intermediate businesses to commercial banks. Despite the benefits of ECIF, false trades appear frequently due to the intricate risks that are hard to be measured by quantitative method. The risks covered by export credit insurance include commercial risk and political risk. Commercial risks can be classified by two reasons: importer bankruptcy and importer collusion with exporter. The risk of insolvency can be measured by modern credit risk models, however, the probability that importer breaches a contract due to dishonesty is hard to be discerned because of information asymmetry and high cost of investigation. In ECIF, the risk is even harder to be measured as risks form both importer and exporter are involved. Game theory is widely used in adverse selection and moral hazard. The application of game theory inspired a microeconomic way of risk analysis in ECIF. The case of ECIF can be a seen as a game among the export enterprise, importer, insurer and bank. This paper will figure out the utility of each party under certain default situation and analyze each risk factor. We adopt joint game approach and tree model to obtain the equilibrium result. The purpose is to maximize the expected utility of each party and minimize the probability of exporter and importer’s collusion as they are the core reasons for the loss of commercial bank and export credit agency (ECA). Since the export credit insurance industry and related risk research are still in the early stage in China, we hope this study can enlighten a new way of risk analysis on ECIF.