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Table of contents

1. Essence, definition, classification and types of investments (Essence and definition of investments. Classification and types of investments. Real and financial investments. Short-term and long-term investments)
2. Characteristics and economic essence of investments (Forms and methods of state regulation. Profit as a source of investment. Regulatory and legal support for investment activities)
3. Foreign investment (Capital outflow. Types of foreign investment. Ways and measures to attract foreign investment)
4. Investment project (Types and life cycle of an investment project. Development of an investment project)
5. Methods of financing investment projects
6. Economic efficiency of investment projects
7. Formation and classification of the investment portfolio
8. Interaction between banks and enterprises
9. Prospects for investment activity
10. Investment activity of the enterprise
11. Investment analysis
12. Place of investment in the economic structure
13. Essence and economic nature of investment risk (Classification of risks. Procedures for assessing project risk. Ways to reduce investment risk)
14. Investment Crisis in Russia
15. The impact of investments on the implementation of structural changes in the Russian economy

LECTURE No. 1. Essence, definition, classification and types of investments

1. Essence and definition of investments

Investment - this is an investment of the capital of the subject in something to subsequently increase their income.

A necessary link in the process is the replacement of worn-out fixed assets with new ones. At the same time, the expansion of production can be carried out only through new investments aimed not only at creating new production capacities, but also at improving old equipment or technologies. This is what makes the economic sense of investment.

Investments are considered as a process that reflects the movement of value, and as an economic category - economic relations associated with the movement of value invested in fixed assets.

Totality of costs - this is a long-term investment of capital in various areas of the economy, implemented in the form of a targeted investment of capital for a certain period in various industries and sectors of the economy, as well as in business and other types of activities to generate income. The very concept of "investment" means capital investments in sectors of the economy, not only at the enterprise, but also within the country and abroad.

Investment - this is saving money for tomorrow in order to be able to get more in the future. One part of the investment is consumer goods, they are put aside in stock (investments to increase stocks).

But the resources that are directed to the expansion of production (acquisition of buildings, machines and structures) - this is another part of the investment.

2. Classification and types of investments

Investments are divided into:

1) intellectual ones are aimed at the training and retraining of specialists in courses, the transfer of experience, licenses and innovations, joint scientific developments;

2) capital-forming - the cost of major repairs, the acquisition of land;

3) direct - investments made by legal entities and individuals who have the right to participate in the management of the enterprise and wholly own the enterprise or control at least 10% of the shares or share capital of the enterprise;

4) portfolio - not giving the right to investors to influence the work of firms and companies invested in long-term securities, the purchase of shares;

5) real - long-term investments in the sector of material production;

6) financial - debt obligations of the state;

7) hoarding - this is the name of investments made with the aim of accumulating treasures. They include investments in gold, silver, other precious metals, precious stones and products made from them, as well as collectibles.

A common specific feature of these investments is the lack of current income on them.

Profit from such investments can be received by the investor only due to the growth in the value of the investment objects themselves, that is, due to the difference between the purchase and sale prices.

For a long time in Russia, the hoarding type of investment represented practically the only possible form of investment, and for many investors it still remains the main way of storing and accumulating capital.

Signs investments are:

1) making investments by investors who have their own goals;

2) the ability of investments to generate income;

3) purposeful nature of capital investment in investment objects and instruments;

4) a certain period of investment;

5) the use of different investment resources, characterized in the process of implementation by demand, supply and price.

According to the nature of the formation of investments in modern macroeconomics, it is customary to distinguish between autonomous and induced investments.

The formation of new capital, regardless of the rate of interest or the level of national income, is called autonomous investment.

The emergence of autonomous investments is associated with external factors - innovations (innovations), mainly related to technical progress. Some role in this emergence is played by the expansion of foreign markets, population growth, as well as coups and wars.

An example of autonomous investment is the investment of state or public organizations. They are associated with the construction of military and civil structures, roads, etc.

The formation of new capital as a result of an increase in the level of consumer spending falls under induced investment.

The first impetus to economic growth is given by autonomous investments, causing a multiplier effect, and already being the result of increased income, induced investments lead to its future growth.

It would be wrong to associate the growth of national income only with productive investment.

Despite the fact that they directly determine the increase in production capacity and output, it should still be noted that this growth is also significantly, although indirectly, influenced by investments in the sphere of non-material production, and the global trend is that their importance in further increase in economic potential increases.

Funds held for investment are primarily in the form of cash.

There are fixed asset costs that are clearly categorized as either capital costs or ordinary operating costs.

Capital costs typically include:

1) additions: new fixed assets that increase production capacity without replacing existing equipment;

2) renewal or replacement of equipment purchased to replace the same fixed assets of approximately the same capacity;

3) improvement or modernization of capital expenditures, leading to the actual replacement or change of fixed assets.

Production costs include: maintenance and repair, depreciation, insurance, taxes, property.

Investments are made through lending, direct cash outlays, and the purchase of securities.

From a financial point of view, the purpose of capital investment analysis is to avoid unnecessary capital expenditures through appropriate planning and budgeting of capital expenditures. This requires: constant updating of the means of production, identifying the need to replace or improve equipment.

Don't wait, even if it can work for a few more years, the final wear and tear of fixed assets can be dangerous.

It is extremely important to have funds in order to finance capital expenditures without jeopardizing the long-term financial plans of the enterprise.

Investment resources are all produced means of production. All types of tools, machines, equipment, factory, warehouse, vehicles and distribution network used in the production of goods and services and their delivery to the final consumer.

Investment goods (means of production) are different from consumer goods. The latter satisfy the needs directly, while the former do it indirectly, providing the production of consumer goods.

When referring to the money that is used to purchase machinery, equipment, and other means of production, managers often speak of "money capital." Real capital is an economic resource, money or financial capital, machinery, equipment, buildings and other productive capacities. In fact, investments represent the capital by which wealth is multiplied.

Investments are classified:

1) in terms of investments:

a) real;

b) financial;

2) by investment period:

a) short term

b) medium-term;

c) long-term;

3) for the purpose of investment:

a) straight lines;

b) portfolio;

4) in terms of investments:

a) production;

b) non-production;

5) by forms of ownership of investment resources:

a) private;

b) state;

c) foreign;

d) mixed;

6) by region:

a) inside the country;

b) abroad;

7) by risk:

a) aggressive;

b) moderate;

c) conservative.

According to the terms of investments, short-, medium- and long-term investments are distinguished.

For short-term investments, investment of funds for a period of up to one year is typical.

Under medium term investments understand the investment of funds for a period of one to three years, and long-term investments are invested for three or more.

According to the forms of ownership, private, state, foreign and joint (mixed) investments are distinguished. Under private (non-state) investments understand the investment of private investors: citizens and enterprises of non-state ownership.

Public investment - these are public investments carried out by authorities and administrations, as well as enterprises of the state form of ownership.

They are carried out by central and local authorities and administration at the expense of budgets, extra-budgetary funds and borrowed funds.

The main investments include investments of foreign citizens, firms, organizations, states.

Under own (mixed) investments understand the investments made by domestic and foreign economic entities.

On regional distinguish between investments within the country and abroad.

Domestic (national) investment includes the investment of funds within the country.

Investments abroad (foreign investments) are understood as investments of funds abroad by non-residents (both legal entities and individuals) in objects and financial instruments of another state.

Joint investments are carried out jointly by the subjects of the country and foreign states.

On a sectoral basis, investments are distinguished in various sectors of the economy, such as: industry (fuel, energy, chemical, petrochemical, food, light, woodworking and pulp and paper, ferrous and non-ferrous metallurgy, mechanical engineering and metalworking, etc.), agriculture, construction , transport and communication, wholesale and retail trade, public catering, etc.

Investments made in the form of capital investments are divided into gross and net.

Gross investment - are used to maintain and increase fixed capital (fixed assets) and stocks. They are made up of depreciation, which is the investment resources necessary to compensate for the depreciation of fixed assets, their repair, restoration to the previous level that preceded production use, and from net investment, i.e. capital investment in order to increase fixed assets for the construction of buildings and structures , production and installation of new, additional equipment, renovation and improvement of existing production facilities.

At the micro level, investment plays a very important role. They are necessary to ensure the normal functioning of the enterprise, a stable financial condition and an increase in the profits of an economic entity.

A significant part of the investments is directed to the socio-cultural sphere, to the branches of science, culture, education, health care, physical culture and sports, computer science, environmental protection, for the construction of new facilities in these industries, the improvement of the equipment and technologies used in them, and the implementation of innovations. There are investments in people and human capital. This is an investment primarily in education and health care, in the creation of funds that ensure the development and spiritual improvement of the individual, the strengthening of people's health, and the extension of life.

The effectiveness of the use of investments largely depends on their structure.

The structure of investments is understood as their composition by types, by direction of use, by sources of financing, etc.

Profitability - this is the most important structure-forming criterion that determines the priority of investments.

Non-state sources of investment are aimed at profitable industries with a fast capital turnover. At the same time, sectors of the economy with low profitability of invested funds remain not fully invested.

Overinvestment leads to inflation, while underinvestment leads to deflation.

These extremes of economic policy are managed by an effective strategy in the areas of taxes, public spending, monetary and fiscal measures implemented by the government.

In the system of reproduction, regardless of its social form, investments play the most important role in the renewal and increase of productive resources, and, consequently, in ensuring certain rates of economic growth.

In the representation of social reproduction as a system of production, exchange and consumption, investments relate to the first stage of production and constitute the material basis for its development.

3. Real and financial investments

Financial investments are the purchase of securities, and real investments are capital investments in industry, agriculture, construction, education, etc.

With real investments, the main condition for achieving the intended goals is the use of relevant non-current assets for the production of products and their subsequent sale.

This includes the use of the organizational and technical structures of a newly formed business to withdraw profits in the course of the statutory activities of an enterprise created with the attraction of investments.

Financial investments represent an investment of capital in various financial investment instruments, mainly securities, in order to achieve the set goals of both a strategic and tactical nature.

Investing in financial assets is carried out in the course of the enterprise's investment activity, which includes setting investment goals, developing and implementing an investment program.

The investment program involves the selection of effective financial investment instruments, the formation and maintenance of a portfolio of financial instruments balanced by certain parameters.

Setting investment goals is the first and determining all subsequent stages of the financial investment process. Financial investments are divided into strategic and portfolio.

Strategic financial investments should help to realize the strategic goals of the enterprise development, such as expanding the sphere of influence, sectoral or regional diversification of operations, increasing market share by "capturing" competing enterprises, acquiring enterprises that are part of the vertical technological chain of production.

Therefore, the main factor influencing the value of the project for such an investor is the receipt of additional benefits for its main activity. Therefore, strategic investors are mainly enterprises from related industries. Portfolio financial investments are made with the aim of making a profit or neutralizing inflation as a result of the effective placement of temporarily free cash.

Investment instruments in this case are profitable types of monetary instruments or profitable types of stock instruments.

The latter type of investment is becoming more and more promising as the domestic stock market develops.

From the financial manager in this case requires a good knowledge of the composition of the stock market and its instruments.

Financial investments include investments:

1) in shares, bonds, other securities issued by both private enterprises and the state, local authorities;

2) in foreign currencies;

3) in bank deposits;

4) in objects of hoarding.

Financial investments are only partially directed to increase real capital, most of them are unproductive investment of capital.

In a market economy, the structure of financial investment is dominated by private investment. Public investment is an important instrument of deficit financing (the use of public borrowing to cover budget deficits).

Investing in securities can be individual and collective. Individual investment is the acquisition of government or corporate securities at the initial placement or on the secondary market, on the stock exchange or over the counter market.

Collective investment is characterized by the acquisition of shares or shares of investment companies or funds.

Investing in securities offers investors the greatest opportunities and the greatest diversity.

This applies to all types of transactions carried out in transactions with securities, as well as the types of securities themselves.

All over the world, this type of investment is considered the most affordable.

Investing in foreign currencies is one of the simplest types of investment.

It is very popular among investors, especially in a stable economy and low inflation.

There are the following main ways of investing in foreign currency:

1) purchase of cash currency on the currency exchange;

2) conclusion of a futures contract on one of the currency exchanges;

3) opening a bank account in foreign currency;

4) purchase of cash foreign currency in banks and exchange offices.

The absolute advantages of investing in bank deposits are the simplicity and accessibility of this form of investment, especially for individual investors.

Financial investments, acting as a relatively independent form of investment, at the same time are also a link on the way to converting capital into real investment.

Since joint-stock companies are becoming the main organizational and legal form of enterprises, the development and expansion of production of which is carried out using borrowed and borrowed funds (issue of debt and business securities), financial investments form one of the channels for capital inflow into real production.

When establishing and organizing a joint-stock company, in the event of an increase in its authorized capital, new shares are first issued, followed by real investments. Thus, financial investments play an important role in the investment process.

Real investments are impossible without financial investments, and financial investments receive their logical conclusion in the implementation of real investments.

Real investments include investments:

1) in fixed capital;

2) into inventories;

3) into intangible assets.

In turn, investments in fixed assets include capital investments and investments in real estate.

Capital investments are made in the form of investment of financial and material and technical resources in the creation of the reproduction of fixed assets through new construction, expansion, reconstruction, technical re-equipment, as well as maintaining the capacities of existing production.

In accordance with the classification adopted in the world, real estate means land, as well as everything that is above and below the surface of the earth, including all objects attached to it, regardless of whether they are of natural origin or created by human hands.

Under the influence of scientific and technological progress in the formation of the material and technical base of production, the role of scientific research, qualifications, knowledge and experience of workers is increasing.

Therefore, in modern conditions, the costs of science, education, training and retraining of personnel, and so on, are essentially productive and in some cases are included in the concept of real investment.

Hence, in the composition of real investments, the third element stands out - investments in intangible assets.

These include: the right to use land, natural resources, patents, licenses, know-how, software products, monopoly rights, privileges (including licenses for certain types of activities), organizational costs, trademarks, trademarks, research and development - design development, design and survey work, etc.

4. Short-term and long-term investments

Long-term investments are invested for a period of three or more years, short-term investments for a period of one year or more. Efficient management of all areas of the enterprise's activities ensures successful development in the conditions of reasonable competition. This also directly relates to the complex process of long-term investment.

As you know, the correct and rapid implementation of measures in this area allows the enterprise not only not to lose the main advantages in the fight against competitors for retaining the sales market for its products, but also to improve production technologies, and therefore ensure further efficient functioning and profit growth.

Within the framework of a single strategic plan, developed in order to ensure the implementation of the general concept, all major management functions are carried out.

The importance of strategic planning cannot be overestimated. The management of such areas of activity as production, marketing, investment requires consistency with the overall goal (general concept of development) facing the enterprise.

The distribution of resources, relations with the external environment (market knowledge), organizational structure and coordination of the work of various departments in one direction allows the enterprise to achieve its goals and make the best use of available funds.

The choice of ways of investment development within the framework of a single strategic plan is not an easy task. Achieving the set goals is associated with the development and implementation of special strategies.

Long-term investment strategy is one of them. This is a rather complicated process, since many internal and external factors affect the financial and economic condition of the enterprise in different ways.

Evaluation of the effectiveness of capital investments requires the solution of a number of different problems. But the choice of a long-term investment strategy can only be made after thorough research is carried out to ensure the adoption of the optimal variant of management decisions. Such an approach at the first stage of strategic planning forces a broader and more versatile look at the use of various analytical techniques and models that justify the adoption of a specific strategic direction.

Recently, the construction of models that contribute to the assessment of the prospects for the investment development of enterprises has become increasingly popular.

Modeling allows managers to select the most characteristic properties, structural and functional parameters of the control object, as well as highlight its main relationships with the external and internal environment of the enterprise.

The main tasks of modeling in the field of financial and investment activities are the selection of options for management decisions, forecasting priority areas for development and identifying reserves to improve the efficiency of the enterprise as a whole.

The use of various kinds of matrices, the construction and analysis of models of the initial factors of systems has gained wide popularity in long-term investment.

The production and economic potential means the availability of fixed assets and technologies corresponding to the current level of technical development, a sufficient amount of own working capital, highly qualified management and production personnel, as well as a sufficient amount of own financial resources and the possibility of free access to borrowed funds.

There are three indicators on the basis of which the investment strategy is chosen: the production and economic potential of the enterprise, the attractiveness of the market and the characteristics of the quality of the product (works, services). Each of them is a complex indicator.

Each specific situation implies a certain line of behavior in long-term investment.

If we evaluate them according to common features, such as the volume of capital investments, types of reproduction of fixed assets, time of investment, degree of acceptable risk, and some others, then it is proposed to single out five possible strategies for long-term investment:

1) aggressive development (active growth);

2) moderate growth;

3) improvement at a constant level of growth;

4) curbing recession and developing new products;

5) active conversion or liquidation.

The strategy of moderate growth allows enterprises to somewhat reduce the pace of their development and growth in production volumes. Now there is no need to significantly increase your production potential in a relatively short time. If this market has already been formed, then the enterprise, as a rule, should invest in the progressive expansion of its activities, as well as allocate funds to increase its competitive advantages, in particular, to improve the quality characteristics of its products, to the service sector, which will also benefit competitive struggle.

LECTURE No. 2. Characteristics and economic essence of investments

1. Forms and methods of state regulation

The state regulates investment activity for the development of market relations in the country. The regulatory role of the state increases in a crisis, as well as reforms. Conversely, it weakens when the economy is stable and buoyant.

State regulation of investment activity is carried out by state authorities of the Russian Federation in accordance with the Federal Law of February 25.02.1999, 39 No. XNUMX-FZ "On investment activity in the Russian Federation, carried out in the form of capital investments".

Forms and methods of state regulation, as well as the procedure for making decisions and conducting an examination of projects, are disclosed in the third chapter of this law.

State regulation includes:

1) indirect regulation (regulation of the conditions of investment activity);

2) direct participation of the state in investment activities.

The task of indirect regulation is to create favorable conditions for the implementation of investment activities.

This regulation has helped to develop various methods of influence that stimulate the development of investment activities.

Methods of influence include: protecting the interests of investors, depreciation policy, tax policy and other measures of influence.

Favorable conditions for the development of investment activities are carried out by:

1) the establishment of tax regimes that are not of an individual nature;

2) protecting the interests of investors;

3) provision of land and natural resources for use on preferential terms;

4) expanding the construction of social and cultural facilities with a large use of funds from the population or other non-budgetary sources;

5) creation and development of an information and analytical network for ratings;

6) application of antimonopoly policy;

7) expanding opportunities for lending;

8) development of financial leasing in the Russian Federation;

9) revaluation of fixed assets in accordance with inflation rates;

10) assistance in creating their own investment funds.

The direct participation of the state in investment activities assists in the implementation of capital investments at the expense of the federal budget.

Forms of direct participation are:

1) development and financing of projects implemented by the Russian Federation, as well as those financed from the federal budget;

2) preparation of estimates for the technical re-equipment of facilities financed from the federal budget;

3) provision of state guarantees at the expense of the budgets of the constituent entities of the Russian Federation;

4) placement of funds on the terms of payment, urgency and repayment;

5) securing part of the shares in state ownership, the sale of which through the securities market is possible only after a certain period of time;

6) conducting an examination of investment projects in accordance with the legislation of the Russian Federation;

7) protection of the Russian market from the supply of obsolete energy-intensive and unreliable materials;

8) development of norms and rules and control over their observance;

9) issue of bonded loans;

10) involvement in the investment process of temporarily suspended construction projects and state-owned facilities;

11) provision of funds based on the results of auctions to Russian and foreign investors.

The procedure for making decisions regarding state capital investments is determined by Art. 13 of the Federal Law of February 25.02.1999, 39 No. XNUMX-FZ "On investment activities in the Russian Federation carried out in the form of capital investments".

Decisions are made in accordance with the legislation of the Russian Federation by public authorities.

The federal budget of the Russian Federation provides for expenditures on financing state capital investments.

They should be part of the costs for the implementation of federal and regional targeted programs.

The Accounts Chamber of the Russian Federation exercises control over the efficient use of funds.

All investment projects are subject to expert review prior to their approval. This is carried out regardless of the sources of funding and forms of ownership of the object.

An examination is carried out to prevent violation of the rights of individuals and legal entities and the interests of the state, as well as to assess the effectiveness of capital investments.

In accordance with Ch. 5 of the Federal Law "On investment activity in the Russian Federation, carried out in the form of capital investments" regulation of investment activity is carried out by local governments.

The methods and forms of such regulation are the same as at the federal level.

But others can also be used, but not contrary to the legislation of the Russian Federation.

2. Profit as a source of investment

All increase in profit is determined by the price factor. Organizations try to make up for the lack of financial resources by increasing the prices of their products.

However, higher prices lead to problems with the sale of products, and as a result, leads to a decline in production.

This can threaten the bankruptcy of many enterprises.

The government is developing measures that will make it easier for firms to generate the necessary financial resources for the development of production, especially since they now represent one of the main sources of capital investment in the economy.

However, given the expectation of high inflation and the lack of competition for the market for manufactured products in many industries, the release of resources to finance capital investment does not in itself have an important impact on investment decisions.

Rising inflation depreciated the firms' own funds received from depreciation deductions, and this source of capital investment actually devalued.

In order to increase the sustainability of such accumulations of enterprises, in August 1992 the government decided to revaluate fixed assets to establish their book value, which would correspond to prices and reproduction conditions.

An increase in the cost of depreciation and the fixed assets of organizations in proportion to the rate of inflation gives an increase in the sources of own funds for financing capital investments.

Anti-inflationary protection of the sinking fund could become one of the significant measures to increase domestic investment activity through constant indexation of the book value of fixed assets. The sharp increase in the state budget deficit makes it impossible to count on solving investment problems through centralized sources of financing. If budgetary funds are insufficient as a potential source of public investment, the enterprise will be forced to switch to lending instead of non-repayable budget financing. Control over the targeted use of credit benefits will be strengthened. To create guarantees of loan repayment, a system of pledge of property in real estate, for example, land, will be extended.

This is stated in the Law of May 29.05.1992, 2872 No. XNUMX-I "On Pledge". Centralized state investments are planned to be directed to the implementation of regional programs, the creation of very effective structural facilities, overcoming the consequences of emergency situations, natural disasters, maintaining federal infrastructure, and solving the most pressing economic and social problems.

Attracting public funds to the investment sphere by selling shares of privatized organizations and investment funds is not only a source of investment, but also one of the ways to protect citizens' own savings from inflation.

The investment activity of the population can be stimulated by setting higher interest rates on personal deposits in investment banks compared to other banking institutions, attracting monetary resources from the population for housing construction, providing citizens who participate in investing in an enterprise with a certain right to purchase its products at factory price, etc.

For the influx of household savings into the capital market, intermediary financial organizations are needed.

However, it is necessary to provide protection for those who want to invest their own money in stock values.

For this purpose, strict state control is established over organizations claiming to attract funds from the population.

The main factor influencing the state of internal opportunities for financing capital investments is financial and economic instability.

The savings of enterprises and the population are depreciated due to inflation, which significantly reduces the investment opportunities of these enterprises. However, the lack of domestic investment capacity can be considered relative.

3. Regulatory support of investment activities

The regulation of investment activity should be rational in terms of results and balanced in terms of flexibility.

This is not possible without the creation of certain legal forms. The law establishes the regulatory framework, determines the position of the subject of investment activity, establishes legal responsibility, determines the various uses of investment activity and controls relations between participants, including with the state.

Legal norms have several characters: permissive, prohibitive, binding and stimulating.

In a market economy, the main role of economic and legal regulators is to stimulate and direct the investment process for the balanced development of the national economy.

Legal regulation of investment activity in the Russian Federation is carried out by two laws.

The first is special investment legislation, the second is civil and economic.

Investment legislation controls and directs the procedure for attracting domestic and foreign investment.

Basic legal acts of general regulation:

1) Civil Code of the Russian Federation;

2) Land Code of the Russian Federation;

3) Tax Code of the Russian Federation;

4) Subsoil law;

5) Law on the Central Bank of the Russian Federation;

6) Law on banks and banking activities;

7) Law on privatization of state and municipal enterprises;

8) legislative acts on taxation, foreign trade activities, etc.

Several laws of special regulation:

1) Federal Law of July 9, 1999 No. 160-FZ "On Foreign Investments of the Russian Federation";

2) Federal Law No. 5-FZ of March 1999, 46 "On the Protection of the Rights and Legitimate Interests of Investors in the Securities Market";

3) Federal Law of October 29, 1998 No. 164-FZ "On financial lease (leasing)";

4) Federal Law of July 16, 1998 No. 102-FZ "On Mortgage (Pledge of Real Estate)";

5) Federal Law of February 25, 1998 No. 39-FZ "On investment activities in the Russian Federation carried out in the form of capital investments";

6) Federal Law of July 21, 1997 No. 112-FZ "On subsoil plots, the right to use which may be granted under the terms of production sharing";

7) Federal Law No. 22-FZ of April 1996, 39 "On the Securities Market";

8) Federal Law of December 30, 1995 No. 225-FZ "On Production Sharing Agreements".

Special legal regulation of investment activity is represented by regulatory legal acts, therefore it is of a complex nature.

Three levels of normative acts of the regulatory framework for investment activities:

1) legislative:

a) supreme legal force - federal constitutional and federal laws;

b) international treaties;

c) the legislation of the subjects of the federation;

2) by-laws:

a) decrees of the President of the Russian Federation;

b) intergovernmental resolutions;

c) government regulations;

d) foreign economic agreements of the subjects of the Russian Federation;

e) departmental acts - orders and resolutions of the ministries and departments of the Russian Federation;

f) resolutions and decisions of local self-government bodies;

3) local, represented by a system of acts of an individual nature:

a) administrative acts of participants in investment activities;

b) legal agreements (based on international public and private law, civil and labor law of the Russian Federation).

For the subject of investment, it is important to know all the main provisions of the law in order to avoid mistakes that can subsequently lead to poor results.

It is necessary to stimulate investment activity due to high investment risks and the high cost of credit resources. The current system of incentives is implemented in the form of tax and customs benefits and is of a fiscal nature. Tax incentives provided by the constituent entities of the federation to investors apply to all taxes that make up the budget of investors. The most common benefits are:

1) on income tax;

2) property tax;

3) transport tax;

4) tax on operations with securities;

5) excises in extractive industries.

Previously, benefits were provided cautiously and on a very limited spectrum, recently - almost everywhere and with great variety. This is a peculiar trend on the part of the regional authorities.

Basically, the scheme for granting tax benefits by the subjects of the Federation depends on:

1) the amount of investment;

2) the type of activity of the subject;

3) the duration of the provision of benefits;

4) purpose of investments.

There are three main directions for the development of the system for stimulating investment activity:

1) provision of budgetary funds to non-state structures on a returnable basis;

2) implementation of the principle of property rights (capital investments are allocated from the federal budget for the development of federal property, and from the municipal budget - for the development of municipal property);

3) equality of investors' rights - guarantees of rights and protection of investments are provided to all investors.

Regulations are inherently aimed at providing additional tax incentives and providing budgetary guarantees to investors.

To initiate a stable investment recovery, a favorable environment for investment activity is needed, as well as the development of methods and forms of economic regulation that take into account the real investment situation. The role and place of the state in the transitional economy in general and in particular in the investment process is a debatable topic among scientists. Their main goal is to find an answer to the question about the specific role of the state in a market economy.

The main task of the state is to create favorable conditions for the growth of private investment while limiting its function as a direct investor. The transitional economic system, disabled, requires more active participation of the state. This is shown by the Russian economic practice of the past decade.

The participation of the state is carried out not only in creating a legal basis for the activities of private investors, but also in direct investment to achieve the necessary structural changes. It is impossible to overestimate the special role of public investment. This is the most important lever for modernizing the structure of the national economy, overcoming certain disproportions that have accumulated in the Soviet and post-Soviet periods.

LECTURE № 3. Foreign investments

1. Capital outflow

In recent years, enterprises and entrepreneurs who have accumulated large capital have appeared in Russia. Large funds are transferred to Western banks due to the unstable economic situation in the country. It was expected that Russia would turn to foreign lenders to finance larger investments as the country acclimatized to market relations. This does not happen, therefore the outflow of monetary resources from Russia is several times greater than their inflow.

In 1993, Russia issued larger loans to foreign borrowers than it borrowed itself.

Russia's current account surplus (where citizens lend more money than they borrow) was about $10 billion.

This increased the investment "hunger" in the country and led to a further weakening of the national currency.

A significant part of the funds accumulated by Russian businessmen, under the influence of the risk of a possible social explosion, with inflation and the continuous fall of the ruble, is transferred to Western banks or used to purchase securities and real estate.

The Russian economy is too unstable for long-term investments.

In this regard, enterprises use their funds not for capital investment within the country, but for issuing loans abroad.

Exporting companies mostly keep their earnings in foreign bank accounts instead of being in Russia and channeling them into new investments.

This process, known as capital flight, is illegal in most cases.

Still, it is much safer to invest capital in a foreign bank with a stable economy than in an unstable Russian economy.

The large-scale outflow of foreign currency outside of Russia forced the adoption of organizational and legal measures to strengthen control over the return of foreign exchange earnings to the country.

In order for Russian enterprises not to be afraid to invest in the Russian economy, it is necessary to create conditions for reducing investment risk.

The magnitude of the risk can be reduced by lowering inflation, the adoption of stable economic legislation based on market potentials.

The main sources of capital flight can be both legitimate and illegitimate.

Legitimate sources include authorized investments in the economies of other countries as the creation of joint ventures or subsidiaries.

The total scale of the outflow of currency cannot be accurately measured, since financial statistics, of course, take into account only their legal part.

The technology of carrying out market reforms presupposes consistency.

Together with the stimulation of capital inflows, measures should be taken immediately to prevent the outflow of capital abroad.

2. Types of foreign investment

Based on effective cooperation between countries, the flow of investment capital is becoming increasingly important.

Foreign investment is the contribution of foreign capital to the assets of national companies.

This can be done both in cash and in commodity form.

Foreign investment is what helps to stabilize the country's economy and contributes to its growth.

Classification of foreign investments

The financial resources of the company are short-lived, so it is very difficult to replenish them by attracting various loans and borrowings. This is influenced by a high rate of profit and a low level of taxation.

Failure of fixed production assets should not exceed 25% of production capacity. In 2006 it was 50%.

Therefore, in order to ensure the reproduction process, the volume of investment annually must range from 100 to 170 million dollars. There are a number of advantages of attracting foreign investment to the country:

1) the possibility of obtaining additional financing for large investment projects;

2) transfer of experience accumulated by the investor country in the world market;

3) stimulation of the development and growth of domestic investment;

4) gaining access to the latest technologies and methods of organizing production;

5) assistance in resolving the financial difficulties of the country.

On the territory of the Russian Federation, investments of foreign capital in objects of entrepreneurial activity are carried out on the basis of the Federal Law of July 9, 1999 No. 160-FZ "On Foreign Investments in the Russian Federation".

A foreign investor can be: foreign legal entities, organizations that are not legal entities, citizens permanently residing abroad, as well as foreign states.

Foreign investments in Russia can be made by:

1) equity participation in enterprises together with citizens of the country;

2) creation of new enterprises owned by foreign investors;

3) acquisition of property and securities;

4) obtaining rights to use land and natural resources;

5) conclusion of agreements providing for other forms of application of foreign investments.

Foreign investments are divided into: direct, portfolio, etc.

Direct foreign investments are investments that provide for long-term relationships between partners. Foreign direct investment is more than just financing of capital investment in the economy, although it is necessary for Russia.

These investments are also a way to increase the productivity and technical level of Russian enterprises. A foreign company brings with it new ways of organizing production, new technologies and direct access to the world market.

Influencing the national economy as a whole, foreign direct investment is of paramount importance. Their role is as follows:

1) the ability to expand investment processes, raise and revive the economy;

2) transfer of experience, training in various know-how;

3) stimulation of production investments;

4) assistance in the development of medium and small businesses;

5) elimination of unemployment and increase in the income level of the population.

Portfolio foreign investment - the acquisition of rights to future income by investing in shares of foreign enterprises without acquiring a block of shares. In this case, it is not necessary to create new production facilities and control them.

Portfolio investment methods:

1) purchase of securities on the market of foreign states;

2) purchase of securities in their country;

3) capital contribution to foreign mutual funds.

Portfolio investments differ from direct investments in that they are not tasked with controlling the enterprise.

Other investments - loans from foreign financial organizations guaranteed by the government of the borrowing country. This type of foreign investment accounts for more than 57% of total investment.

The state guarantees the export of private capital. Insurance of private investors by the state is practiced in many countries. The regulation of foreign investment between countries is carried out by the conclusion of international treaties. There are a number of reasons why it is difficult to attract foreign capital in Russia today:

1) the lack of a stable legal framework makes it difficult to regulate the activities of foreign investors;

2) deterioration in the material situation of the majority of the population;

3) active growth of corruption and crime in entrepreneurial activity;

4) underdeveloped infrastructure, including transport, communications, communication system, hotel service;

5) unstable political situation;

6) high taxes and duties.

But Russia may be of interest to foreign investors:

1) rich and inexpensive natural resources;

2) young highly qualified and quickly trained personnel;

3) large domestic market;

4) cheap labor force;

5) possibility of participation of foreign investors in privatization;

6) quick superprofit.

With the right use of opportunities, Russia can come out on top among other Western European countries. Official policy is to support foreign direct investment, but for the reasons described above, foreign companies find it very difficult to invest in the Russian economy.

The ranking of the countries of the world community according to the investment climate index or its inverse risk index is a generalizing criterion for the investment attractiveness of a country and a criterion for foreign investors.

Today in Russia the legal conditions for the activity of foreign investors are critical in comparison with other countries. The government is currently working on amendments to the Foreign Investment Law.

It is planned to exempt organizations with foreign investment from paying import duties and taxes on the necessary production materials and give them the right to own land when creating new enterprises.

Thanks to this, investments from abroad should be more promising.

3. Ways and measures to attract foreign investment

Attracting investments (both national and foreign) to the Russian economy is a necessary means of eliminating the investment "hunger" in the state.

An important point is the insurance of investments against non-commercial risks.

Russia's accession to the Multilateral Investment Guarantee Agency (MIGA), which insures activities against political and other non-commercial risks, is an important step in this area.

Rules and laws should provide a guarantee of their application to the activities of potential investors.

The legal regime in Russia is unstable, as it is in a stage of constant reform. The state's need for foreign investment amounts to 10-12 billion dollars per year. Although, in order for foreign investors to make such investments, very significant changes in the investment climate are needed.

In the near future, the legal framework for the functioning of foreign investment will have to be improved through the adoption of the latest editions of the Law on Investments, the Law on Free Economic Zones and the Law on Concessions.

Legislative definition of land ownership rights will also be of great importance.

In order to facilitate foreign investors' access to information on the situation in the Russian investment market, the State Information Center for Investment Promotion was created, which organized a bank of proposals from the Russian side on investment objects.

To improve the investment climate and stabilize the economy, a number of significant measures are required, which are aimed at creating both general conditions for the development of civilized market relations in the country, and specific ones directly related to solving the issue of attracting foreign investment.

The primary measures of a general nature are:

1) achievement between various structures of power, political parties and other public organizations of national consent;

2) speeding up the work of the State Duma on criminal legislation and the Civil Code, the purpose of which is to create a civilized non-criminal market in the country;

3) radicalization of the fight against crime;

4) limiting the rate of inflation by all measures known in world practice, with the exception of non-payment of salaries to workers;

5) revision of tax legislation in the field of production stimulation, as well as its simplification;

6) mobilization of free funds of the population and enterprises for investment needs by increasing interest rates on deposits and deposits;

7) introduction in the construction of a system of payment for objects for the final construction products;

8) launching the bankruptcy mechanism provided for by law;

9) the provision of tax incentives to banks, foreign and domestic investors who make long-term investments in order to fully compensate them for losses from a very slow turnover of capital compared to other areas of their activity;

10) formation of a common market with free movement of goods, capital and labor in the republics of the former USSR.

Among the measures to enhance investment should be noted:

1) urgent consideration and adoption by the Duma of a new law on foreign investment in Russia;

2) adoption of laws on concessions and free economic zones;

3) creation of a system for receiving foreign capital, which includes a competitive and wide network of state institutions, commercial banks and insurance organizations that insure foreign capital against commercial and political risks, information and intermediary centers that are engaged in the selection and ordering of relevant projects for Russia, the search for investors, interested in their implementation and prompt execution of turnkey transactions;

4) creation in Russia in a short time of a national system for monitoring the investment climate;

5) development and adoption of a program to strengthen the ruble exchange rate and transition to its full convertibility.

These measures significantly help inflow of foreign and national investments.

LECTURE № 4. Investment project

1. Types and life cycle of an investment project

Investment project is a program of activities through which effective capital investments are made for profit.

The variety of investment objects is quite large. They differ in duration and volume of financial resources, scale, etc. However, each investment project consists of four identical elements:

1) settlement period - the period of project implementation;

2) net investment - the amount of costs;

3) cash flow - net cash flow from activities;

4) liquidation value - the demand and extraction of capital at the end of the economic life of investments.

The need to consider this project depends on the balance of these four elements.

The necessary information, prepared in advance for making a decision, is the primary task of the investment project.

Its main method is a mathematically constructed scheme of the consequences of making appropriate decisions.

According to this scheme, we look at whether the volume of investments is sufficient for a given economic entity, especially the impact on its current and prospective financial condition.

Before making management decisions, it is necessary to carry out the planning or design stage, which will end with the development of an investment project.

The investment project contains a list of assessments and indicators of its effectiveness for the entire period of existence - from the initial stage of development to full completion. General information about the project should include:

1) the direction of the planned production, the composition of the products;

2) information on the location of production;

3) information about the features of the technology and the content of the consumed resources, the system for the sale of manufactured products.

Such a project is accompanied by documentation approved in the prescribed manner by standards (norms and rules).

The investment project is also accompanied by a description of actions consistently performed in practice in terms of the timing of the investment.

This part of the documentation is a detailed business plan of the company with detailed characteristics of the project, justification of its duration, implementation features, sources and directions of cash flows, etc. Much attention is paid to justifying the financial feasibility of the project, cash receipts are also taken into account, including revenue from product sales. (works, services), non-operating income, losses, all types of company payments, including capital investments, liquidation costs at the project completion stage, costs for increasing working capital (including depreciation funds), production costs, tax payments, wages fee, etc.

The project balance is the balance of cash flow for an investment project, estimated by the difference between the inflow and outflow of funds both at each time period of the investment project, and in general.

Also, the design materials should contain all information about its characteristics, both technical and technological and organizational.

Its participants (including shareholders, creditors) should be indicated and a preliminary assessment of the feasibility of the investment project should be given, necessarily taking into account uncertainty and potential risks.

The moment of reduction may not coincide with the moment of the beginning of the countdown.

In this case, discounting is understood as reduction to all points in time.

You should also take into account the indirect impact of the investment project on the activities of the enterprise, for example: an increase in taxes paid with an increase in sales or transportation costs.

There are also opposite cases: for example, an increase in depreciation when investing in fixed assets, which will certainly lead to a decrease in tax payments.

Temporary principle is the ratio of cash flows to the time scale.

To conduct an investment analysis of a project, it is important to know when certain cash payments or receipts will occur.

Based on assumptions, this principle can be found in the calculation of the "payback period of the project".

But a simple calculation of the payback period does not provide complete information about the attractiveness of the project.

When an investor decides to build or purchase equipment, it becomes necessary to compare the capital costs that are to be made now with the income that will be brought in the future.

In order to make such a comparison, the enterprise needs to know how much future income is estimated today and what their size will be in the future.

These questions can be answered by applying the time concept of the value of money.

When analyzing investment projects, integral values ​​of non-synchronous costs and results are used.

The compared indicators refer to different times, so the key problem is the problem of their comparability.

In general, the disparity in the costs and results of any financial operation at different times is usually manifested in the fact that receiving income today is considered more preferable than generating income tomorrow, and spending today is less preferable than spending tomorrow.

The proverb "time is money" corresponds to our time, therefore, convenient models and algorithms have been created to bring the amounts of income and expenses related to different time periods into a comparable form.

All components of the investment project can be expressed in monetary terms.

There are a number of cash flow values ​​that describe the process of implementing an investment project.

The cash flow of an investment project consists of the following main elements:

1) taxes;

2) proceeds from the sale of products;

3) production costs;

4) investment costs.

After the completion of the investment period and the beginning of the operating period, the amount of cash flow, as a rule, becomes positive.

2. Development of an investment project

The investment cycle begins long before the start of the activities envisaged by the project, and ends long after its completion.

In this sense, the concept of "investment cycle" is much broader than the concepts of "project life cycle" and "investment cycle".

There are two phases of the investment cycle.

1. Pre-investment phase. It cannot be determined exactly, only approximately. At this stage of the project, marketing research and the selection of suppliers of raw materials and equipment are developed. Negotiations are conducted with future suppliers, legal registration of the enterprise is carried out, contracts are drawn up, etc., at the end of the pre-investment phase a detailed business plan for the investment project must be presented.

Investment is carried out during the investment phase. During the investment phase of the development of the project, actions are taken: such as the purchase of equipment, construction, etc., which require much higher costs and are irreversible.

In subsequent phases, the project is not yet able to ensure its development at its own expense.

At this stage, permanent assets of the enterprise are formed, expenses are incurred for staff development and advertising campaigns.

2. Operational phase - starts from the moment of activation of the main equipment, acquisition of real estate, etc.

In this phase, the start-up of the enterprise, the production of products or the provision of services begins.

The duration of this phase affects the overall characteristics of the project.

The longer it is, the greater the total income. A common definition of the life of a project is the materiality of cash returns from the point of view of the project participant.

It is necessary to conduct a banking examination to grant a loan.

The duration of the life of the project will coincide with the maturity of the debt, the further fate of the investments of the lender will not be of interest.

LECTURE No. 5. Methods of financing investment projects

Method financing investments - is the financing of the investment process by attracting investment resources.

Investment financing methods:

1) self-financing;

2) financing through capital market mechanisms;

3) attraction of capital through the credit market;

4) budget financing;

5) combined investment financing schemes.

The investment process financing scheme consists of several single sources of investment activity financing and financing methods.

Self-financing is formed exclusively at the expense of its own financial resources generated from internal sources (net profit, depreciation deductions, on-farm reserves).

Domestic self-financing is very difficult to predict, but it is the most reliable method of financing investments.

Any business expansion begins with the attraction of additional sources of financing.

There are two main options for investing resources in the capital market: equity and debt financing.

In the first case, the company receives funds from the additional sale of shares by increasing the number of owners, or through additional contributions from existing owners.

In the second, the company issues and sells fixed-term securities (bonds).

This entitles their holders to long-term current income and the return of the provided capital in accordance with the conditions.

Capital market as a source of financing for a particular enterprise is very extensive.

If the conditions for remuneration of prospective investors are attractive in the long term, then investment requests are satisfied in sufficiently large volumes.

But this is possible only theoretically, but in practice, not every company can use the capital market as a means of using additional sources of financing.

The work of the market and the requirements for its participants are fully regulated by both state bodies and market mechanisms proper.

As for market mechanisms that hinder the possibility of attracting large amounts of financing, we can note the relationship between the capital structure and financial risk and the effect of the enterprise's reserve borrowing potential.

The main form of raising funds for investment is the expansion of equity capital, then loans and the issuance of bonds.

The advantages of this form of financing are that the income per share directly depends on the result of the enterprise's work, and the issue of shares for public sale increases their liquidity.

Of course, there are also disadvantages: an increase in the number of shareholders leads to the division of income among a large number of participants.

Corporate bonds - these are documented investments made in enterprises in order to obtain agreed amounts of income, as well as repay (return) previously borrowed amounts by a certain date.

Of course, on the one hand, the owner of such securities receives a certain income that does not depend on the prices of bonds in the market, but, on the other hand, since bonds are traded on the secondary market, investors always have the opportunity to play on the difference in prices - nominal and market.

This is what keeps the investment attractiveness of corporate bonds.

Raising capital through the credit market - funds received as a result of a loan (credit) in a bank.

This is done mainly to eliminate any time gaps in the reproduction process.

An investment loan has certain differences from other credit transactions.

Firstly, it is a longer period of provision and a high degree of risk.

A loan is issued subject to the basic principles of lending: repayment, urgency, payment, security, intended use.

Long-term loans can generally be extremely beneficial to large and small enterprises.

They are considered as the best means of external financing of capital investments if the enterprise cannot increase or maintain its profitability using current profits or raising funds in the long-term loan capital markets by issuing bonds at low prices.

The firm has a priority to get better credit terms than when selling on the bond market.

If necessary, certain terms of the loan can be changed by agreement, and a shorter repayment period of the loan compared to a conventional bond loan can be considered an advantage at high interest rates.

Forms of granting an investment loan can be different:

1) revolving loans;

2) convertible into urgent;

3) credit lines;

4) urgent loans.

urgent loan - this is a precisely established repayment period, payment in installments (annually, semi-annually, quarterly) under the main loan agreement.

A borrower with a stable financial position can open a special loan account, drawn up by a loan agreement, where the bank undertakes to provide a loan as needed, that is, to pay for settlement documents received in the name of the borrower within the established limit.

Such a loan can be formalized by the so-called credit line (a legally formalized obligation of a credit institution to the borrower for the right to provide a loan within a specified amount within a certain period).

It can be open for a period not exceeding one year.

A credit line can be revolving (revolving) and non-revolving (framework).

A revolving line of credit is provided by the bank in the event that the borrower experiences a long-term shortage of working capital to maintain the required production volume.

The term of such a loan cannot exceed one year.

As a rule, the bank requires additional guarantees from the borrower. At the same time, the interest rate is slightly higher than with a regular term loan.

A non-revolving (framework) credit line is provided by the bank to pay for commodity deliveries within the framework of one loan agreement, which is implemented after the limit is exhausted or the loan debt is repaid, for a specific lending object.

The opening of any credit line is based on long-term cooperation between the lender and the borrower. This provides a number of advantages for each of them. The borrower gets the opportunity to more accurately assess the prospects for expanding its activities, reduce overhead costs and loss of time associated with negotiating and concluding each individual loan agreement.

The creditor bank enjoys the same benefits, and in addition, gets acquainted with the activities of the borrower.

As a rule, every loan agreement contains guarantee obligations.

The lender sets the conditions for maximum risk reduction on the loan:

1) first of all, a loan is provided to enterprises engaged in woodworking, non-ferrous and ferrous metallurgy, oil and gas industry, military-industrial complex;

2) the minimum debt coverage ratio (1,5) is determined on the basis of the total amount of short- and long-term debt of the borrower;

3) the borrower’s funds in the project must exceed 30% of the total cost of the project;

4) the project must have good prospects for generating income in foreign currency;

5) the project must be safe for the environment and contribute to the economic development of Russia;

6) the profitability of the project must be more than 15%.

Budget financing of investments - Allocation of funds to legal entities for investment purposes from the state budget.

Only state-owned enterprises, as well as legal entities associated with the implementation of state programs, can receive state investments.

This financing is carried out in accordance with the level of decision-making.

At the federal level, only federal programs and facilities that are federally owned are funded; on the regional level - only regional programs and facilities owned by individual specific territories.

Direct budget support can be provided in the form of guarantees or budget investments and budget loans.

Budgetary allocations are limited and applied mainly to state-owned enterprises and organizations of strategic importance.

Budget investments - participation of the state in the capital of the organization.

Budget credits (financed on the basis of return) - an instrument of state investment stimulation.

An innovation in investment policy is the transition from the distribution of budget allocations for capital construction between industries and regions to selective partial financing of specific facilities and the formation of a composition of such facilities on a competitive basis, which greatly contributes to the implementation of the principle: achieving maximum effect at minimum cost.

Also, enterprises to finance investment activities can use investment tax creditwhich is a tax deferral.

The condition of this loan is repayment. The period for its provision is from one year to five years. Interest for using an investment tax credit is set at a rate of no less than 50 and no more than 75% of the refinancing rate of the Bank of Russia. Investment tax credit can be provided for income tax, as well as for regional and local taxes.

An investment tax credit is issued based on the company's application and documents confirming the need for a loan. When a positive decision on an investment tax credit is made, an agreement is concluded between the taxpaying enterprise and the executive authority.

During the term of this agreement, the enterprise reduces tax payments (but not more than 50%) for each reporting period until the amount of the loan specified in the agreement is reached.

Risk capital - one of the promising sources of funds for the development of small businesses.

This is a common risky scheme based on the fact that part of the invested projects will have a high profitability, which will be able to cover all losses in case of failure of the rest of the investment.

This so-called venture capital investment is carried out without the provision of collateral by the small enterprise.

This method of financing is applied with the help of an intermediary (venture company) between investors and an entrepreneur.

When choosing a method of financing capital investments, an enterprise must take into account both its capabilities and the advantages and disadvantages of each of the sources for obtaining investment funds.

LECTURE No. 6. Economic efficiency of investment projects

The effectiveness of investment projects implies the compliance of the project with the goals and interests of its participants. The effective implementation of projects increases the gross domestic product that is at the complete disposal of the company, which is divided among the firms participating in the project, banks, budgets of different levels, shareholders, etc. The income and costs of these entities determine the choice of various investment project efficiencies.

Types of efficiency:

1) the effectiveness of the project as a whole;

2) the effectiveness of participation in the project.

The effectiveness of the project as a whole - is evaluated to determine the possible attractiveness of the project for future participants and to find sources of funding.

It includes the public (socio-economic) and commercial effectiveness of the project.

Indicators of social efficiency - socio-economic consequences of creating an investment project for the whole society (including both direct costs and results of the project) and "external": costs and results in related sectors of the economy, social, environmental and other non-economic effects. In some cases, when these effects are very significant, in the absence of documents, the assessment of independent qualified experts can be used. The indicators of the commercial efficiency of the project take into account the financial consequences of its implementation for the participant who implements the investment project.

Project efficiency indicators generally characterize technological, technical and organizational aspects from an economic point of view.

The effectiveness of participation in the project lies in the interest in it of all its participants and the feasibility of the investment project.

The effectiveness of participation in the project should consist of:

1) the effectiveness of the participation of enterprises in the project;

2) the effectiveness of participation in the project of structures of a higher level than the enterprises participating in the investment project;

3) the effectiveness of investing in the shares of the enterprise;

4) budgetary efficiency of the investment project. Basic principles of efficiency:

1) consideration of the project throughout its entire life cycle until its termination;

2) the correct distribution of cash flows, including all cash receipts and expenses related to the implementation of the project for the billing period, taking into account the possibility of using different currencies;

3) comparability of different projects;

4) the principle of positivity and maximum effect. From the investor's point of view, in order for an investment project to be recognized as effective, it is necessary that the effect of the project implementation be with a "plus"; when comparing several alternatives of investment projects, preference should be given to the project with the highest effect value;

5) taking into account the time factor. When evaluating the effectiveness of a project, it is necessary to take into account various aspects of the time factor, as well as changes in the time of the project and its economic environment; the time gap between the receipt of resources or the production of products and their payment; disparity in costs or results at different times (earlier results and later costs are preferable);

6) accounting only for future receipts and expenses. When calculating performance indicators, it is necessary to take into account only the revenues and costs planned in the process of implementing the project, including costs associated with attracting previously formed production assets, as well as future losses caused by the implementation of the project (for example, from the termination of existing production in connection with the creation of place of the new one);

7) taking into account all the most significant consequences of the project. When evaluating the effectiveness of an investment project, it is necessary to take into account all the consequences of its implementation. If their impact on performance is quantifiable, then it should be quantified in these cases. In other cases, this influence must be taken into account by experts;

8) taking into account the project participants, the conflict of their interests and different estimates of the cost of capital;

9) phasing of the assessment. At different stages of the development and implementation of the project (selection of a financing scheme, justification of investments, economic monitoring), its effectiveness is re-determined with different depths of study;

10) taking into account the impact on the efficiency of the investment project of the need for working capital, which is necessary for the operation of production funds created at the stages of project implementation;

11) taking into account the impact of inflation (taking into account changes in resources and prices for various types of products during the project implementation period) and the possibility of using several currencies in the project implementation;

12) taking into account (in quantitative form) the impact of risks and uncertainties accompanying the implementation of the project.

The amount of initial information depends on the design stage at which the performance evaluation is carried out.

Initial information should include:

1) the purpose of the project;

2) the nature of production, general information about the technology used, the type of products (works, services) produced;

3) information about the economic environment;

4) conditions for the beginning and completion of the project, the duration of the billing period.

Before the evaluation of the effectiveness of the expert is the social significance of the project.

National economic, large-scale projects are considered socially significant.

At the initial stage, the performance indicators of the project as a whole are calculated.

The purpose of the stage is to create the necessary conditions for the search for investors and the aggregated economic evaluation of design solutions.

For local projects, only their commercial effectiveness is subject to evaluation; if it is acceptable, it is recommended to proceed directly to the next stage of evaluation.

First of all, for socially significant projects, their social effectiveness is evaluated. With poor public efficiency, such projects are not recommended for implementation and do not have the right to qualify for state support. If their public effectiveness is sufficient, their commercial effectiveness is evaluated. If a socially significant investment project has sufficient commercial efficiency, it is recommended to consider the possibility of using various forms of support to increase its commercial efficiency to the required level.

If the conditions and sources of financing are already known, the evaluation of the commercial effectiveness of the project can be omitted.

After the financing scheme is developed, the second stage of the assessment is carried out.

At this stage, the composition of participants is taken into account and the financial efficiency and feasibility of participation in the project of each of them is calculated (industry and regional efficiency, budgetary efficiency, efficiency of participation in the project of shareholders and individual enterprises, etc.).

When assessing the effectiveness of investments for certain project participants, additional information is required on the functions and composition of these participants.

For participants who simultaneously perform several heterogeneous functions in the project (for example, investors purchasing manufactured products or providing borrowed funds), these functions should be described as a whole. For those participants who have already been identified at this stage of the calculations, information is needed on their financial condition and production potential.

The production potential of an enterprise is calculated by the value of its production capacity (preferably in kind for each type of product), the wear and tear and composition of the main technical equipment, structures and buildings, the presence of intangible assets (patents, know-how, licenses), the availability and professional qualification structure of personnel .

When a project involves the creation of a new company, pre-collected information about its shareholders and the amount of the proposed share capital is necessary. Only its functions in the implementation of the project determine its other participants (for example, a lending bank, a lessor of a particular property).

Information about the economic environment of the project should include:

1) a forecast estimate of the general inflation index and a forecast of relative or absolute price changes for certain resources and products (services) for the entire period of project implementation;

2) forecast of changes in the exchange rate of the currency or the index of internal inflation of foreign currency for the entire duration of the project (it is desirable to form various forecast scenarios for the previous and this paragraphs);

3) information about the taxation system.

The forecast prices are usually determined sequentially, based on the rate of price growth at each stage.

In some cases, the dynamics of forecast prices is determined based on the need to bring the structure of these prices closer to the structure of world prices.

The source of this information is the long-term forecasts and plans of government bodies in the field of economic policy and finance, analysis of the trend in price changes and the exchange rate, analysis of the structure of prices for resources and products (services) in Russia and the world.

Information about the taxation system should contain, first of all, a more detailed list of taxes, excises, fees, duties and other similar payments (hereinafter referred to as taxes).

Particular attention should be paid to taxes that are regulated by regional legislation (taxes of federal subjects and local taxes). For each type of tax, the following information must be provided:

1) tax base;

2) tax rate;

3) frequency of tax payments (terms of payment);

4) on tax benefits (in the part relating to enterprises - participants in the project). If the composition and amounts of benefits are established by federal law, you can specify the document by which they are determined. The benefits that are introduced by the subjects of the federation and local administration are described in full;

5) distribution of tax payments between budgets of various levels.

The specified information is given separately for groups of taxes, and payments for them are reflected in the balance sheet of the enterprise in different ways. If information about a particular tax is established by federal law, you can only indicate the relevant document. As a result, if for the corresponding type of production or region this tax is calculated in a different order, it is necessary to bring the corresponding addition and change. The calculation of IP commercial efficiency indicators is formed on the following principles:

1) the (market) current or forecast prices for material resources, products and services provided for by the project are used;

2) cash flows are calculated in the same currencies in which the project provides for the acquisition of resources and payment for products;

3) wages are included in operating costs in the amount determined by the project (including deductions);

4) if the project involves both the consumption and production of certain products (for example, the production and consumption of components or equipment), the calculation takes into account only the costs of its production, but not the costs of its acquisition;

5) the calculation takes into account deductions, taxes, fees, etc., provided for by law, in particular VAT refunds for consumed resources, tax benefits established by law, etc.;

6) if the project provides for the full or partial binding of funds (acquisition of securities, deposit, etc.), the investment of the corresponding amounts (in the form of an outflow) is accounted for in cash flows from investment activities, and the receipt (in the form of inflow) - in cash flows from operating activities;

7) if the project provides for the simultaneous implementation of several types of operational activities, the costs for each of them are taken into account.

Tables are recommended as output forms for calculating the commercial effectiveness of the project:

1) profit and loss statement;

2) cash flows with the calculation of performance indicators.

To build a profit and loss statement, you must provide information on tax payments for each type of tax.

As an (optional) supplement, a forecast of the balance of liabilities and assets by calculation stages (balance sheet table) can also be provided. In the process of calculating performance indicators, two main aggregates are used: the amount of receipts and the amount of payments.

From the definition given in the World Bank guidelines, the amount of proceeds is the sum of the benefits received as a result of the project, and the amount of payments is the sum of the costs of the project.

In certain cases, other receipts from other activities, for example, financial transactions for placing free cash on deposit with a bank, may also be taken into account. That is, these are the following payments:

1) investment costs, such as the cost of building a plant;

2) production costs (bricks);

3) tax payments;

4) the cost of servicing debt obligations, interest on loans.

Also, expenses for conducting other operations not related to the main activity (for example, financial operations with free cash resources) can be taken into account. In the list of receipts and payments, regardless of the absence of receipts in the form of own (share) or borrowed capital, there may be payments for debt service. When receiving a loan, the company actually takes money for rent, and interest is only rent payments for the use of funds.

Items of income and payments made by the bank in relation to the project:

1) income from loans issued to the project in the form of interest;

2) amounts paid to the bank as debt repayment by the company implementing the project;

3) dividends from the implementation of the project (in case the bank acquires a part in the project - a block of shares of the company implementing the project);

4) cash receipts in case the bank sells its part (shares) of the project. The following payments are implied:

a) the cost of direct investment in the project (in the case of the acquisition of shares);

b) loans issued by the bank;

c) the cost of servicing the bank's debt obligations for borrowed funds (payment for resources);

d) the costs of the bank to ensure activities, overhead costs (as a result of evaluating the entire set of bank projects).

It should be borne in mind that the conditions for participation in the project of different investors may differ from each other, for example, the bank that gave the loan and the venture fund that bought the block of shares.

Taking into account the effectiveness of each investor's participation in the project, it is necessary to individually approach the choice of items of payments and receipts used in calculations, depending on the object of assessment.

It should also be taken into account that the discounting process already takes into account the cost of capital (resources in the bank example).

In this case, it is not necessary to take into account the amounts paid by the bank to service the debt.

Of the considered indicators, each reflects the effectiveness of the project from different angles, therefore, when evaluating any project, it is necessary to use the full set of criteria.

During the review of projects, preference should be given to those that have higher performance indicators.

Therefore, in order to make a decision on project financing in the form of key performance indicators, it is necessary to use the values ​​obtained during the calculation for the equivalent of the financial result in hard currency.

The values ​​of most criteria depend on the duration of the project.

To do this, it is necessary to take into account for what time period they were calculated.

Even the most stable monetary units can be classified as such with a certain degree of conventionality.

Having agreed among themselves on the use of certain indicators of the project's effectiveness and on quite specific methods for calculating them, the specialists, of course, had in mind that the unit of measurement of the initial data and the results obtained would meet the same basic condition, namely, constancy.

And also it should be a generally accepted monetary unit, which can be classified as conditionally stable.

It is necessary to invest in such a way that from each invested monetary unit the income is the same for each investment program.

If, on the other hand, investment costs are distributed in such a way that the increment in utility derived from the implementation of one investment program is less than from another, then the funds are used less efficiently than they could.

Therefore, utility can be increased by reducing investment in projects that generate negligible returns. An investor who wants to maximize the use of invested resources must redistribute his funds in this way and do this until the increase in utility from invested investments becomes the same in all directions.

The way that consumers of investments achieve the highest effect from them is that they must control that the marginal utility is the same for all investment programs and projects.

Investments should be used in such a way that the marginal effect is the same for all projects.

This approach should be the basis for the choice of the economy as a whole, industry, enterprise between different options for investment programs.

If all decision-makers in the national economy follow this rule, the total utility and output will be maximum.

Ignoring this provision leads to the stagnation of production, to a decline in economic growth, to a deep economic recession.

Failure to use the marginal utility leads to a deformation of the structure of investments, which are not directed to the most profitable economic sectors that best satisfy the consumer needs of the population, chosen according to a completely different criterion.

This leads to a very deformed structure of the economy.

For prosperity to be as high as possible, it is also necessary that investment activity proceed as smoothly as possible.

In order for governments, businesses and citizens to make rational and sound investment decisions, they must have access to information about the costs and consequences of their choices. The costs of collecting information and the process of preparing for the implementation of an investment project should be very small. The higher the costs associated with the preparation of investment programs, the less efficient the investment process itself can be organized.

Economic resources are limited compared to the needs and desires of people.

Therefore, it is necessary to use them sparingly. Scarcity of resources means that people are forced to choose how to consume the resources available in order to get the most out of their use.

The scarcity of resources also means that everything has a price, as there are always opportunity costs.

To get the best effect from the resources available, it is necessary to accurately balance profits and costs. At the company or enterprise level, investment preference is calculated in such a way that management rarely pays attention to some effects other than those that are directly related to the economics of the company or enterprise.

Meanwhile, in the state financial calculations, the items of income and expenditure included in the state budget are considered.

But the macroeconomic consequences of the decisions of the state, enterprises, companies and some citizens are more extensive.

They also include aspects that do not fall directly and directly into the final settlements of the company or into the debit or credit of the state budget.

Hence the need to expand the boundaries of the analysis of the consequences of certain investment decisions at the project stage, to predict the consequences, to predict the further impact on the course of the entire economic process. The value of the efficiency of investment investments is the minimum cost of resources for transportation and production as a result of these investments.

When calculating the effectiveness of investing in fixed assets, the costs of forming working capital are also added.

In addition to direct investments, related investments are also taken into account that ensure the launch of the facility into operation (power lines, access roads, engineering networks), and associated investments in the development of industries that provide this production with continuously renewable fixed assets.

The efficiency of investments over time is not the same.

This proceeds from the ratio of the increase in capital investments to the increase in national income: the greater this ratio, the greater the capital intensity of the national income, the more additional investments must be made per unit of increase in national income.

And this requires the largest share of accumulation in the national income.

The issues of choosing the volumes and directions of investments are the subject of a large number of publications and various discussions.

There are several reasons for the great interest in the problem of rational investment observed recently.

First of all, in the transition to market forms of organization of production, the responsibility and risk in the use of investment resources have greatly increased.

In addition, in the period of a market economy, at the time of the dynamization of the life of the economy, individual volumes of investment investments increase.

The right choice of investment programs in such conditions becomes more and more responsible and difficult. It should also be said about the ongoing changes in the technical and organic composition of capital in the current era of information technology. With the progressive development and accumulation of technology and science, the share of fixed capital grows, the technical equipment of labor increases, the scale of means of labor and productivity grow. All this increases the bondage of capital in the means of labor and reduces its maneuverability.

As a result, there is growing interest in choosing the right scale and objects of investment: the stakes in the struggle for profit are too high.

Economic science is faced with the question of finding criteria for selecting extremely profitable investment projects. The main criterion for this is to achieve maximum profit. In addition to the direct benefit to date, the expected benefit is increasingly important.

The possibility of ousting competitors from the market is to be assessed, the benefits from the "secondary effect" provided by the development of subsequent investments and production, that is, benefits that go beyond the boundaries of a single company or enterprise, are determined.

The larger the enterprise, the corporation, the more capital they have, the more opportunities they have, along with investments that bring large profits, to make investments in which significant profits can be expected in the future. Incomes and expenses of the current moment of time are not equivalent to the future. Therefore, their comparison is necessary.

Under market conditions, any capital invested in a firm or enterprise is defined as employed, on which interest must be paid.

Even if an entrepreneur invests his own capital, in order not to be at a loss, he must take into account in his costs an interest on capital, not less than that which could be received, provided that it was given to someone on long-term credit.

This percentage is usually the basis for creating companies and other objects in market conditions, comparing options and choosing the most profitable one.

In addition to interest, which is, as it were, the "price of capital", the possibility of making a profit, entrepreneurial income, is also taken into account.

Here, much depends on certain conditions of production: the supply of raw materials, energy and fuel, the availability of secure sales, the degree of use of labor power.

When calculating the most profitable investments within an enterprise or company, their management resorts to various methods of calculation.

In practice, a large number of individual business entities often use very rough estimates based on experience, assumptions, hunches, information about the actions of competitors, etc.

Few firms use systematic methods of calculation. These are usually large firms that have a staff of specialists and the best information.

The task of the former includes the development of technology, the study of market conditions, etc.

If the project satisfies all the criteria for assessing economic efficiency, then it can be accepted.

LECTURE No. 7. Formation and classification of the investment portfolio

Constantly faced with a situation of choice in the process of investment activity, the investor must achieve his goals. When placing funds, several investment objects are selected, making up a certain set. Purposeful selection of such objects is the process of forming an investment portfolio. An organization's investment portfolio is a set of investment objects obtained in accordance with the investor's investment goals, considered as an integral management object.

The main task of portfolio investment is to create optimal investment conditions and, at the same time, provide the investment portfolio with those investment characteristics that cannot be achieved when placing funds in a single object.

During the formation of the portfolio, the latest investment quality is achieved: the required level of income is provided for a given level of risk by combining investment assets. The main goal of investment activity at the enterprise is to ensure the implementation of its investment strategy.

If the investment strategy of the enterprise is aimed at expanding activities, then the main investments will be directed to investment projects or assets related to the improvement of production. Available investments in other objects will be subordinate to them. This will affect, for example, the terms and volumes of placement.

When forming an investment portfolio, the investor is aimed at making a profit, but at the same time operates under conditions of acceptable risk for him.

Income can be received in the form of an increase in the value of acquired assets.

When forming any investment portfolio, the investor pursues such goals as:

1) achieving a high level of profitability;

2) capital gains;

3) reduction of investment risks;

4) liquidity of the invested funds at an acceptable level for the investor.

Brief description of these goals.

Achieving a high level of profitability involves receiving regular income in the current period.

The frequency of receipts is set in advance.

These can be interest payments on bank deposits, planned income from the operation of real investment objects (real estate, new equipment), dividends and interest on shares and bonds, respectively.

Receipt of current income affects the solvency of the enterprise and is taken into account when planning cash flows.

This is the main goal in the formation of an investment portfolio, especially in a situation of short-term placement of funds (for example, if there is an excess of funds and it is inappropriate or impossible to use it for production purposes in the current period).

Capital gain is provided by investing funds in objects that are characterized by an increase in their value over time.

This is true for the shares of young issuing companies (mainly of an innovative nature), as their activities expand, a certain increase in prices for their shares is expected, as well as for real estate, etc.

As in the general case, when carrying out investment activities, and when forming an investment portfolio, the investor is aimed at making a profit (income), while acting within the limits of acceptable risk for him.

Income can be received not only in the form of current payments or profits from the implementation of investment projects received with a certain degree of regularity and certainty (predictability) at certain intervals, but also in the form of an increase in the value of acquired assets.

Reducing investment risks, or investment security, means the independence of investments from instability in the investment capital market and the stability of income.

To achieve this goal allows the selection of objects that will ensure the return of capital and income of the planned level.

However, risk minimization does not always completely eliminate the likelihood of negative consequences, but only helps to achieve their acceptable level while ensuring the required return for the investor. It depends on the investor's attitude to risk.

Ensuring sufficient liquidity of the invested funds implies the possibility of a quick and without large losses in the value of converting investments into cash, or the possibility of their rapid implementation.

This goal is not necessarily related to the previous goals, it is most achievable when placing funds in financial assets that are in steady demand on the stock market (stocks and bonds of well-known companies, securities).

It should be emphasized that none of the investment values ​​has the properties listed above in the aggregate, which leads to the alternativeness of the named goals for the formation of the investment portfolio.

Thus, security is usually achieved at the expense of high profitability and investment growth.

In world practice, government debt obligations are safe, but income on them rarely exceeds the average market level and, as a rule, there is no significant increase in investments.

Securities of other issuers, real investment projects can bring the investor more income (both current and future), but there is an increased risk in terms of return of funds and income.

As a rule, investment objects that involve an increase in investments are the least liquid - real estate has the minimum liquidity.

Given the alternative investment goals, it is impossible to achieve their simultaneous achievement.

Therefore, the investor must prioritize a specific target when building his portfolio.

The difference in the goals of forming investment portfolios determines the many options for the direction and their composition in individual companies.

The portfolio of real investment projects is formed by investors carrying out production activities and includes objects of real investment of all kinds. The formation and implementation of a portfolio of real investment projects provide a high rate of development of the company, the creation of additional jobs, the organization of a high image and some government support for investment activities.

At the same time, compared with other types of investment portfolios, a portfolio of real investment projects is usually the most capital-intensive, more risky due to the duration of implementation, and also the most complex and labor-intensive to manage.

This determines the high level of requirements for its formation, the thoroughness of the selection of each investment project included in it.

A portfolio of securities contains a certain set of securities.

Compared to a portfolio of real investment projects, it is characterized by higher liquidity and easy manageability.

At the same time, this portfolio is distinguished by: a high level of risk, which applies not only to income, but also to the entire invested capital; lower level of profitability; the absence in most cases of opportunities for a real impact on profitability (except for the possibility of reinvesting capital in other stock market instruments); low inflation protection of such a portfolio; limited options for choosing individual financial instruments.

The portfolio of other investment objects, as a rule, complements the investment portfolio of individual companies (for example, a foreign exchange portfolio, a deposit portfolio).

A mixed investment portfolio simultaneously includes heterogeneous investment objects listed above.

The classification of investment portfolios according to priority investment objectives is primarily related to the implementation of the enterprise's investment strategy and, to a certain extent, to the position of its management in investment management.

The growth portfolio is formed with the aim of increasing the capital value of the portfolio along with the receipt of dividends and consists mainly of investment objects that ensure the achievement of high capital growth rates (as a rule, from shares of companies with a growing market value).

The income portfolio is focused on receiving current income - interest and dividend payments. It consists mainly of investment objects that provide income in the current period (stocks, which are characterized by a moderate increase in market value and high dividends, bonds and other securities, the distinguishing feature of which is the payment of current income).

The conservative portfolio mainly includes investment objects with average (sometimes even minimal) risk levels (for such investment objects, the growth rates of capital and income are much lower).

The above types of portfolios have many intermediate varieties.

Growth and income portfolios at the highest of their targets are sometimes referred to as aggressive portfolios.

The classification of investment portfolios according to the achieved compliance with the investment goals is primarily related to the process of implementing the goals of their formation.

A balanced portfolio is characterized by the full realization of the investor's goals by selecting investment projects or financial instruments that best meet these goals.

An unbalanced portfolio is characterized by a discrepancy between its composition and the goals of formation.

A variety of an unbalanced portfolio is an unbalanced portfolio, which is a previously balanced (optimized) portfolio that no longer satisfies the investor due to a significant change in the external conditions of investment activity (for example, tax conditions) or internal factors (for example, a significant delay in the implementation of individual real investment projects) .

LECTURE No. 8. Interaction between banks and enterprises

Over the past five years, the volume of investments has decreased three times. This indicates that the investment process is going through a deep crisis. According to experts, Russia will be able to overcome the crisis only by losing a number of key sectors of the reproduction cycle.

The main reason for the crisis is the rapid decline in domestic savings. This is due to the fall in national production with a deterioration in the structure of investment. Another reason for the crisis is also the lack of national financial resources.

The state is leaving the investment sphere, and there is also no economic and legal mechanism that allows enterprises to effectively attract national and international capital.

This circumstance, together with political instability, creates the ground for low efficiency and high risk of productive investments.

Closer cooperation of enterprises with financial institutions and investment institutions creates a possible way out of the investment crisis.

The developed banking system of Russia has little experience of cooperation with enterprises.

This happens for the following reasons:

1) the absence of a mechanism for converting external and own savings of enterprises into productive investments;

2) restrictions in the field of currency control, preventing the attraction of international investors;

3) inattention to the peculiarities of the market and financial and economic activities in the development of a foreign economic strategy for the development of enterprises and banks;

4) the leading role of the bank in cooperation with the enterprise, the low level of banking services, the lack of intra-bank coordination.

The benefit of an enterprise in cooperation with a bank in attracting resources from external investors and placing its own resources is as follows: the enterprise helps the bank go through the procedures for obtaining a license from the Central Bank for those operations that are related to the movement of capital. The bank, having a general license, can provide the enterprise with the received resources, passing them through its balance sheet.

It is also important for the investor that the bank, when the transaction is properly executed, controls the targeted use of the invested resources of the enterprise.

The bank has much more room to maneuver.

Very often, banks are forced to abandon effective trust operations for managing enterprise assets due to the imperfection of the regulatory framework.

Sometimes organizations that have a network of foreign counterparties cannot accurately organize settlements, which is quite within the power of a commercial bank.

The use of a bank as a financial institution that can carry out forward, futures and option transactions with various currency values ​​provides many real advantages. For an ordinary enterprise, such operations are associated with additional time costs and tax payments. Hence the increase in the cost of attracted resources.

The participation of the bank increases the profitability of investments made under such schemes, and above all - for the invested company.

The Bank may use a simplified mechanism for a foreign investor (within the framework of the Instruction of the State Tax Service of the Russian Federation No. 34 dated June 16.06.1995, XNUMX) for tax exemption of income of a foreign legal entity in the framework of short-term banking transactions.

Also, the cooperation of a foreign investor with banking structures helps him avoid the status of a permanent establishment and the requirement of tax accounting, which simplifies the procedure for repatriating foreign investments.

Certain difficulties for the enterprise are created by the ambiguity of legislation on taxation of value added in the case of attracting funds from foreign investors.

Such schemes of banking structures help to avoid tax risks for both investors and the invested company.

A feature of leasing operations is the consolidation of the role of the lessor for the bank.

In addition, the provision of benefits for leasing entities is also important.

This includes accounting for the cost of production (works, services) of interest on borrowed funds and lease payments, as well as the complete exemption of lease payments from small enterprises from VAT.

Additional benefits for income tax of foreign legal entities are also provided by a number of international agreements on the avoidance of double taxation.

They exempt foreign legal entities that do not have a permanent establishment in Russia from paying property tax.

The main part of the clientele of banks are medium and small enterprises, and they are profitable, and most importantly, such investment schemes are available.

For large enterprises in the world market, the main issue is the organization of their branches, as well as participation in foreign enterprises to create new industries that fill the gaps in technological chains, but not organized on the territory of the Russian Federation.

This applies to science-intensive sectors of the economy. Sometimes foreign subsidiaries are needed due to the technological features of industries such as fishing, oil, gas, gold, etc.

Cost reduction in the framework of the main production activity also occurs in connection with these features of the industry. The leading bank of the company can help carry out the issuance, select partners and effectively manage the company's securities portfolio.

This is carried out within the framework of the project of "tied issue" of securities with the subsequent execution of an interbank transaction or using the "nominee holder" mechanism.

The potential of possible transactions in clearing currencies has not been fully utilized.

Enterprises have such resources, but are limited in their use in foreign markets.

In this regard, there are huge opportunities in such forms of payment as transfer and revolving letters of credit. They allow you to use them under certain schemes to replenish the working capital of the enterprise.

Credit departments or bank managements are increasingly faced with the need to apply investment analysis methods. Many banks create specialized divisions whose purpose is to evaluate and finance projects.

In order to work in these departments, highly qualified experts are required, as well as the provision of the necessary methodological and effective tools.

Investment proposals.

Investment proposals are reviewed and verified by the bank's experts.

Only after that they make a preliminary decision on the continuation of work with the project.

In order to carry out the preliminary examination procedure without much difficulty, the expert must be well acquainted with the investment goals and objectives of the bank.

The main circumstance is that the client, knowing about the bank's strategy, focuses on its goals and objectives in the process of preparing an investment proposal.

This increases his chances of a positive reaction from the bank, but the inconsistency of the essence of the project with the goals and objectives of the bank gives reason to reasonably refuse to support the client's project.

The project appraisal stage is very important. At this stage, it is important to provide complete information about the project, supported by financial and legal documents.

The task of the analytical division is to prepare an expert opinion on the project.

This is done based on verification of reliable information, project risk analysis and financial analysis. The business plan of the project with the expert opinion is submitted to the administrative body of the bank, which makes the final decision on participation in the project.

All this is connected with the processing and transmission of information. It is necessary that at all stages this information be reliable and have high processing efficiency.

There is a simple rule - projects are accepted for consideration, in which the net income is greater than 0 and the maximum, the profitability index is greater than 1, the internal rate of return is greater than the interest rate on loans, and the payback time of the project is minimal.

If the project has higher performance indicators, then, accordingly, it will be given preference by the bank.

LECTURE No. 9. Prospects for investment activity

Insufficient inflow of foreign direct investment makes it necessary to look for new organizational forms of joint business activities.

The most attractive for foreign investors are free economic zones, where the number of enterprises with foreign capital has reached 18%.

An increase in investment activity is possible, but with close cooperation between federal and territorial authorities.

This allows you to minimize investment risks and effectively invest savings and private investments. The real way to improve investment activity is to provide enterprises with greater independence, including the issues of attracting foreign capital.

The tasks of the administrative bodies of the region are to maintain the main life support systems.

Thus, the strategic goals and priority areas of joint business activities are as follows:

1) development and improvement of export potential, increasing the level of competitiveness;

2) creation of a mechanism for regional promotion of exports, primarily through tax incentives for exporters and long-term soft loans issued for the development of export industries, as well as the creation of collateral and insurance funds that protect against all risks;

3) rationalization of imports in order to change the structure of the economy and improve the main industries, aimed at strengthening the export base;

4) exemption from taxes on an irrevocable basis, on the terms of a commercial loan, or abolition completely.

All this is aimed at achieving one goal: to create favorable conditions for the successful development of joint business activities and for the more efficient use of foreign investment in the interests of the economy.

The main difficulty of economic reforms lies in the insufficient capacity of domestic public savings and the impossibility to fully fill the gap in capital investment to overcome the economic downturn by private investors.

Due to the high risk, investments in the real sector are not attractive for all subjects: both for bank capital, and for domestic and foreign investors, as well as for the population. Future investors are trying to invest in more profitable and reliable financial assets.

High inflation has resulted in a rate of interest far exceeding the potential profitability of many industrial projects. This made medium- and even more so long-term loans inaccessible.

The main weakness of the state investment policy is the insecurity of budget expenditures for investment purposes. These expenses were financed until recently on a residual basis.

And the consequence of this was the growing from year to year accounts payable in the investment sector and a constant decrease in the volume of actually carried out investments in production.

The experience of recent years shows that there are objective prerequisites for breaking the investment impasse. In combination with the control of the money supply, inflation can be significantly reduced.

As a result, the interest rate will go down, the refinancing rate of the Central Bank will fall, and the yield of GKOs will decrease.

But in order to take advantage of the improvement in the investment climate, a momentum is needed to set the investment mechanism in motion.

As such, we have a development budget, which has become an integral and organic part of the federal budget. With the proper organization of development budget management, the mobilization of funds from private investors to finance priority projects in the real sector of the economy increases tenfold.

The development budget concentrates only a part of the resources allocated by the state for investment purposes.

Financial resources for the fulfillment by the state of its obligations of a social nature are directed to the construction of facilities, ensuring the safety of the functioning of technically complex systems (such as power plants, river routes), as well as the construction of expensive facilities - are provided through the current budget.

Funds attracted to the development budget in the form of loans are directed to goals, the achievement of which is capable of generating income, which makes it possible to pay off loans. To do this, incoming funds must be placed on an urgent and returnable basis. To ensure the highest efficiency in the use of development budget funds, the selection of funded projects is carried out at the same time.

With such an economic situation in the country, the priority can only be a sharp increase in funds for economic growth. Only such an approach allows to end the crisis in the shortest possible time.

When studying the world experience in organizing the financing of investment projects, it can be seen that high reliability of investment and efficiency are achieved if the principle of project financing is used. A prerequisite is the investment of a certain part of their own financial resources.

But in projects for which resources are allocated from the development budget, the investor’s personal funds must be at least 20%.

In such conditions, financial support from the state can be up to 40%, which corresponds to world practice.

At the same time, it is proposed to use the provision of tied loans, when the state does not transfer budget money to the borrower’s accounts, but pays for goods and services necessary for the implementation of the project on the terms of choice among suppliers. At the same time, the state can, at the expense of the development budget, provide a commercial bank with guarantees for financing this project in the amount of up to 40% of the loan.

There is a limitation of the guarantee provided, which is determined by the need for the bank's responsibility for choosing the client and checking the economic efficiency of the project.

The high level of guarantee protection results in fewer guarantees being provided.

Development budget revenues are proposed to be formed from sources of financing the budget deficit, as well as targeted investment loans from the World Bank and loans issued in accordance with the concluded intergovernmental agreements.

It should be noted that the simple formation of the development budget as a set of articles in the federal budget does not solve the problem.

A special mechanism for its implementation is being introduced, which does not depend on the current progress in the execution of the federal budget.

If this is not done, then there will be no acceleration of economic growth due to current problems.

This mechanism is the fixing in the budget legislation for the development budget of the relevant sources. The economic crisis has many long-term and short-term factors that predetermine its deepening.

But among them there is one that from time to time is inherent in the economies of different countries of all economic systems.

It is associated with the state of the investment process in the country's economy.

Ultimately, it determines the possibilities for economic development, as well as the state of the structure of the economy.

Therefore, while ensuring an efficient economy, there is always the problem of finding appropriate mechanisms, sources that make it possible to achieve the necessary results.

To overcome the crisis, the development and implementation of an effective state investment policy is required.

This is necessary primarily because investments and related structural shifts in the economy play a major role in shaping macroeconomic proportions. The difficulty of regulating investment activity lies in the fact that it covers diverse areas of economic life.

This is the sphere of scientific and technological progress, and state management of the economy, financial and banking activities, commercial settlement of enterprises, pricing, etc.

Often the problem of investment is reduced to the methods of distribution of capital investment resources.

The investment process, which reflects the reproduction of production assets, includes the formation of the accumulated part of the national income, the distribution and financing of capital investments, and the use of fixed assets. Considering the national economy, we can say that the sources of investment are the compensation fund, in the form of depreciation deductions, and the accumulation fund, which acts as part of the national income.

At enterprises and associations, as well as in other economic entities, it is carried out at the expense of the investor's own financial resources, borrowed financial resources of investors, attracted financial resources of investors, as well as budget investment allocations.

With these budget loans, the share of loans to the private sector is constantly increasing.

It must be said that the financial infrastructure of the market provides savings and converts their effective investments. This is especially true in the current period of development and formation of market structures, the search for market forms of management, forms of implementation of the investment process.

As a rule, investment and commercial banks, investment and pension funds, and insurance companies act as institutional investors.

With the help of this system, the savings of the population are formed into investments.

The credit and financial sphere provides funds for investments at the disposal of enterprises and other economic entities.

There is a movement of funds from where there is an excess of them, to where they are lacking in them, as well as from industries with low profitability to investments in industries with greater profitability.

Unilateral inflationary policies led to devastating hyperinflation, rapidly rising prices, and the depreciation of money.

The fall in the gross domestic product along with the reduction and deterioration of the structure of foreign trade turnover with the worsening balance of payments deficit speaks for itself.

The accumulation and consumption funds are being eaten up by non-payments and inflation. This paralyzes economic development and the reproductive process. The inflow of external capital for the structural and qualitative renewal of production remains scanty, while the outflow from the internal turnover, as well as the transfer of commodity resources and financial resources to the sphere of shadow circulation, has acquired unjustified proportions. Almost stopped investment and innovation processes in the manufacturing sector. At different stages of the circulation of fixed assets, it is necessary to reduce economic management into a single mechanism by a continuous investment process. This is understood as the transformation of investment into - the growth of national income.

In the field of investment management, both final and intermediate goals are formed.

To do this:

1) determine the criteria for choosing the main directions of capital investments;

2) determine the conditions under which the opportunities for expanded reproduction are provided for all participants in the investment process;

3) formulate the principles and terms of financing at different stages of the investment process, including the formation of investment resources.

The effect of the technical re-equipment of enterprises through leasing will be expressed in the growth of their profits and, accordingly, the payment of taxes to the budget, which more than compensates for the benefits to investors.

Given the role of leasing machinery and equipment in improving scientific and technological development, the state needs to support organizations that carry out leasing operations.

Now all efforts are aimed at creating conditions for the development of investment activity of enterprises, since the size of the profit received by enterprises is many times higher than their capital costs.

There is still a lot to be done in creating favorable conditions for intensifying investment activity in the country's economy: to stabilize the financial system, to reduce inflation to an acceptable level, since in the conditions of non-payments and uncontrolled price growth, investment activity is speculative.

It is aimed primarily at maintaining the existing situation, and not at creating economic conditions for the growth of production, updating the range and improving the quality of goods and services.

LECTURE No. 10. Investment activity of the enterprise

Investments occupy a central place in the economic process and predetermine the overall growth of the enterprise's economy. As a result of investment, production volumes increase, income grows, industries and enterprises that come out ahead in the competition and best meet the demand for certain goods and services develop and go ahead in economic rivalry.

The income received is partially accumulated again and increases, there is a further expansion of production, which leads to the prosperity of the enterprise.

This process is repeated continuously.

Thus, investments themselves determine the growth of expanded reproduction, which is formed at the expense of income as a result of efficient distribution.

At the same time, the more efficient the investment, the greater the growth in income, the greater the absolute size of the accumulation of funds that can be reinvested in production.

With a sufficiently high efficiency of investment, the increase in income can provide an increase in the share of accumulation with a full increase in consumption.

The main features of investment activitythat determine the approaches to its analysis are:

1) irreversibility associated with a temporary loss of liquidity;

2) the expectation of an increase in the initial level of well-being of the enterprise;

3) the uncertainty associated with attributing the results to a relatively long-term perspective.

Although it is clear that productive investment directly determines the increase in production capacity and output, it would be wrong to attribute income growth only to them.

Investments in the sphere of non-material production have a significant impact on this growth, and their importance in further building up economic potential is increasing.

It is necessary to clarify the role and significance in the reproduction process of such categories as capital investments and capital construction, since the construction sector of the economy accounts for a large share of investment activity.

Attracting investment is one of the most important means of eliminating the investment "hunger" in the enterprise. An important step in this area was the implementation of insurance against non-commercial risks.

An important condition for private investment is a permanent and well-known set of dogmas and rules formulated in such a way that potential investors can understand and foresee that these rules will apply to their activities.

At an enterprise that is in the process of continuous reform, the legal regime is unstable.

However, in order for investors to make such investments, very serious changes in the investment climate are necessary.

The organization of financing is one of the most important problems in investment activity.

The formation of investment resources is the main initial condition for the implementation of the investment process.

Sources of investment financing are those funds that can be used as investment resources.

A lot depends on the correct selection of sources of financing, this is not only the viability of investment activities, but also the distribution of final income from it, which gives financial stability to an enterprise making investments.

The composition and structure of investment financing sources depends on the economic mechanism operating in society.

According to the method of attraction, in relation to the subject of investment activity, investment resources are allocated, attracted from internal and external sources.

There are external and internal sources of investment financing at the macro- and microeconomic levels.

At the macroeconomic level, domestic sources of investment financing include:

1) state budget financing;

2) savings of the population;

3) savings of enterprises, commercial banks, investment funds and companies, non-state pension funds, insurance companies, etc.

To external:

1) foreign investments;

2) foreign credits and loans.

At the microeconomic level, internal sources of investment include own funds generated at the enterprise to ensure its development.

The basis of the company's own financial resources, formed from internal sources, is the capitalized part of the net profit, depreciation, investments of the company's owners.

The investment resources of an enterprise attracted from external sources characterize that part of them that is formed outside the enterprise.

It covers both equity and debt capital attracted from outside.

This includes government funding, investment loans, funds raised by placing own securities, and a number of others.

According to the nationality of the owners of capital, investment resources are allocated, which are formed at the expense of domestic and foreign capital.

Investment resources formed at the expense of domestic capital are distinguished by a wide variety of forms and, as a rule, are more accessible to small and medium-sized businesses.

Formed at the expense of foreign capital, investment resources mainly ensure the implementation of large real investment projects of the enterprise related to the improvement of technology, reconstruction.

According to the title of ownership, investment resources are divided into two main types - own and borrowed.

Own sources of investment - this is the total value of the enterprise's funds owned by it and providing its investment activities.

Own sources of investment financing include:

1) authorized capital;

2) profit;

3) depreciation charges;

4) special funds formed at the expense of profit;

5) on-farm reserves;

6) funds paid by the insurance authorities in the form of compensation for losses.

Own funds also include funds donated to the enterprise for targeted investment.

The company's own funds, in terms of the way they are attracted, can be both internal (for example, profit, depreciation) and external (for example, additional placement of shares).

The amounts raised by the enterprise from these sources are not returned.

The entities that provided these funds, as a rule, participate in the income from the sale of investments on the basis of shared ownership.

Borrowed sources of investment characterize the capital attracted by the enterprise in all its forms on a repayable basis.

All forms of borrowed capital used by the enterprise in investment activities represent its financial obligations, subject to redemption on predetermined conditions (terms, interest).

Entities that provided funds under these conditions, as a rule, do not participate in income from investment activities.

Given its capabilities when choosing a source of investment financing, as well as advantages and disadvantages, the company reduces the likelihood of risk.

Management should take a closer look at the main sources of financing for capital investments, with an analysis of their positive and negative aspects.

Authorized capital - the initial amount of funds provided by the owner to ensure the statutory activities of the enterprise.

The authorized capital is the main and, as a rule, the only source of financing at the time of the creation of a commercial organization.

It is formed during the initial investment of funds.

Its value is established during the registration of the enterprise, and any changes in the size of the authorized capital (additional issue of shares, reduction in the nominal value of shares, making additional contributions, admission of a new participant, joining part of the profit, etc.) are allowed only in cases and in the manner prescribed by the current legislation and constituent documents.

In the authorized capital of an enterprise during its creation, the founders can invest both monetary funds and tangible and intangible assets.

At the time of the transfer of assets in the form of contributions to the authorized capital, the ownership of them passes to the economic entity, i.e. investors lose the right to these objects.

Thus, the participant is only entitled to compensation for his share, agreed in advance, within the framework of the residual property, in the event of his withdrawal from the company or the liquidation of the enterprise.

But he does not have the right to return the objects transferred to him at one time in the form of a contribution to the authorized capital.

It follows that the authorized capital reflects the amount of the company's obligations to investors.

But also the authorized capital of the enterprise guarantees the interests of its creditors, determining the minimum amount of its property.

The minimum authorized capital of an open joint stock company, for some organizational and legal forms of business (its value is limited from below) must be at least a thousand times the amount of the minimum wage (minimum wage) on the date of its registration, and for a closed company - at least a hundred times the amount of the minimum wage.

Shares distributed upon establishment of the company must be fully paid within the period specified by the charter, while at least 50% of the distributed shares must be paid within three months from the date of state registration of the company, and the remaining part - within a year from the date of its registration.

Extra capital - the source of funds of the enterprise, it reflects the increase in the value of non-current assets as a result of the revaluation of fixed assets and other tangible assets with a useful life of more than 12 months.

All types of fixed assets are subject to revaluation.

It may also include the amount of excess of the actual placement price of shares over their nominal value (share premium of the joint-stock company).

The use of additional capital for acquisition purposes is prohibited by regulations.

Reserve capital - can be created at the enterprise both on a mandatory basis and in the event that it is provided for in the constituent documents.

The creation of reserve (reserve) funds is obligatory for open joint-stock companies and enterprises with foreign capital.

According to Federal Law No. 26.12.1995-FZ of December 208, 15 “On Joint-Stock Companies,” the amount of the reserve fund is determined in the company’s charter and should not be less than XNUMX% of the authorized capital.

The formation of the reserve fund is carried out by mandatory annual deductions from profits until it reaches the established size.

The reserve capital can be used by decision of the meeting of shareholders to cover the company's losses, as well as to redeem the company's bonds and buy back its own shares in the absence of other funds. The reserve capital cannot be used for other purposes.

Net profit - the main form of income of the enterprise.

It is defined as the difference between the proceeds from the sale of products (works, services) and its full cost.

Net profit allocated for investment purposes can either be collected in an accumulation fund or other funds of a similar purpose created by the enterprise (for example, a development fund), or reinvested in the assets of the enterprise as an undistributed balance of profit, which practically does not occur in newly opened enterprises.

Very often, enterprises try to make up for the lack of financial resources by raising prices for their products.

However, increasing prices, the company faces certain difficulties due to demand restrictions. They can lead to problems with the sale of products, and then to a decline in production.

This can put many businesses on the brink of bankruptcy.

Some enterprises, in order to find the necessary resources for investment, constantly raise the prices of their products, as a result of which their products become much more expensive than even better ones.

These enterprises find themselves in an extremely difficult situation, from which it is sometimes impossible to get out.

Therefore, the sale of products becomes problematic, and the fate of the enterprise is uncertain.

The government is taking measures that will make it easier for companies to generate the necessary financial resources for the development of production, especially since they are now one of the main sources of investment in the economy.

To expand the range of opportunities for organizations will help the decision on the full exemption from income tax on investment, which is effective from January 1, 1992.

This could serve as an important incentive to increase investment activity.

Nevertheless, given the high level of inflation expectations and the lack of competition for the market for manufactured products in many industries, the release of funds to finance capital investments does not in itself have a certain impact on investment decisions.

Inflationary growth has devalued the own funds of organizations received from depreciation deductions, and this source of investment has actually devalued.

The increase in the cost of fixed assets of organizations and their depreciation in proportion to inflationary rates allows you to increase the sources of your own resources to finance capital investments.

In order to double the sustainability of organizations' own savings, in August 1992 the government decided to revalue fixed assets to establish their book value at appropriate prices and conditions of reproduction.

Therefore, one of the main ways to increase domestic investment activity through regular indexation of the book value of fixed assets could be the anti-inflationary protection of the sinking fund.

The rapid increase in the state budget deficit does not allow counting on the solution of investment problems through centralized sources of financing.

With insufficient budgetary resources as a potential source of public investment, it will be necessary to move from irrevocable budget financing to lending.

Supervision over the targeted use of concessional loans will become tougher.

To ensure the repayment of the loan, a system of pledge of property in real estate, in particular, land plots, will be introduced.

At present, there is a need to maintain the federal infrastructure, create especially effective structural facilities, overcome the consequences of emergency situations, natural disasters, and solve the most acute economic and social problems.

From the point of view of budget financing, at the stage of overcoming the crisis, the priority areas will be:

1) maintenance of scientific and production potential;

2) the allocation of public investment to stimulate the development of key agricultural and raw material areas that provide a solution to the fuel, energy and food problems;

3) the allocation of subsidies for social purposes to underdeveloped areas with a very low standard of living of the population, which are unable to stop its decline on their own.

Market relations in investment activity primarily affect its sources. [1]

Speaking about the sources of investment in general, we can say that they are determined by the level of economic development.

The reduction in gross domestic product by half with a decrease and deterioration in the structure of foreign trade turnover with an increase in the balance of payments deficit speaks for itself. Domestic consumption and savings funds are eaten up by inflation and non-payments, which slows down the reproduction process and economic development.

LECTURE № 11. Investment analysis

Financial analysis - the need to take into account a large amount of data, a rather laborious work when calculating an investment project.

In addition to the parameters of the project itself, it is necessary to include in the calculation all kinds of tax features, inflation, rates - all this should be added to sets of generally accepted reporting forms.

The final report should include not only financial indicators, but also marketing research, legal, technical and other information.

As a result, the work of the analyst becomes more difficult.

The most difficult thing in preparing reports when working with a large project is the competent presentation of its results, confirmed by relevant documents and marketing research.

This is what qualified personnel do.

The calculation itself is a secondary work for them, as a rule, it is simply not performed by them.

They try not to prepare financial calculations on their own, but only check their correctness and validity of all figures.

That is, they simply do not think about the problems associated with financial calculations, and cannot assess the possibilities of solving them with the help of one or another tool.

Such reasons increasingly influence the opinions of experts, but there are also objective reasons for bad reviews from professionals.

The use of universal software implies the creation of their own developments, models, methods. The time spent on preparing one or two projects turns out to be unacceptably large.

But if ten or more projects are being prepared, then the loss of time for preliminary preparation becomes less significant.

Implemented methodology. Most of the experts who use this program have a thorough understanding of investment analysis.

But these representations are of a general plan: a set of indicators, standard reporting forms, evaluation criteria. Until the end, not everyone knows the complex methodology of analysis, where everything is thought out in stages, with a unified approach to analysis and data collection, assumptions, presentation of results, etc. To one degree or another, investment analysis programs are based on this complex methodology. In addition, by accepting it, the enterprise immediately receives more tools that carry out all the necessary calculations. Thus, the program offers a turnkey solution, and all that is required is to give consent and prepare all the necessary data.

In complex analytical programs, there are significantly fewer errors than in small spreadsheets.

Each of these programs has hundreds or even thousands of users. They, and not just the developers themselves, are the guarantors of the quality of the product.

The mistakes made here, as a rule, are not critical for the result, and the chance of encountering them is small.

Ease of presenting results.

It is not enough to present the financial characteristics of the project to the person for whom they were prepared, they must also be substantiated. And among other things, it is necessary to explain the method by which they are calculated.

A clear statement of the methodology is an even more difficult task than the creation of a neat project. The name of any program implies a full description of the methodology you have adopted and the authority of its creators and users.

But there are advantages to small primitive tables as well.

Reduced Flexibility. Each developer tries to make their programs as user-friendly as possible. But some of the opportunities are still lost.

Even programs made in the form of a large Excel template build their data structures, which become more difficult to change depending on the complexity of the program itself.

Fixed Data Set. Using these programs, you can get an idea of ​​what initial data needs to be collected.

If your own needs are lower than the capabilities of the system, this will only result in an overabundance of information in reports and unnecessary program capabilities.

Basically, any management decisions can be considered from the point of view of the analysis of investment projects.

The phrase "investment project" refers to a certain sequence of actions aimed at the potential profit in the course of the organization's activities.

It is of no fundamental importance from the point of view of investment analysis whether a project for the construction of a new plant or a project for the purchase of a consignment of goods is being considered.

Analysis of alternative projects.

When considering several alternative projects at the same time, it is important to consider the relationship between them.

The projects are called mutually independentif the acceptance or rejection of one of them does not affect the possibility or effectiveness of the acceptance of the other.

The joint effect from the implementation of several independent projects is equal to the sum of the effects from the implementation of each of them.

Projects are called complementary, which for some reason can only be accepted or rejected at the same time.

If only some of these projects are implemented, the overall goals set may not be achieved.

The projects are called mutually influencingif during their joint implementation there are positive or negative effects that are not manifested in the implementation of each of the projects separately.

Each of the projects significantly affects the other, and the rejection of one of them makes it impossible or inappropriate to implement the other.

The projects are called alternativeif the implementation of one of them makes it impossible or inexpedient to implement the others.

Most often, alternative projects are projects that serve to achieve the same goal, but only one of the alternative projects can be implemented.

The most difficult in a number of investment analysis problems is making a decision on choosing the best of alternative projects. In this situation, the analyst should:

1) choose the best of several projects aimed at achieving the same goal of the investor;

2) choose the best one from several independent projects if the investment capital is not enough to implement all of them;

3) choose different options for one project.

The choice of the best investment option from a number of alternatives is done in steps:

1) each option is checked for compliance with all existing restrictions of a technical, environmental, social and other nature;

2) an analysis of the financial viability of each project is carried out. Projects that do not meet the first two conditions are excluded from further consideration. Sometimes their parameters, financing conditions and (or) the organizational and economic mechanism of implementation can be adjusted in such a way as to satisfy the conditions of feasibility and financial solvency;

3) the absolute effectiveness of each of the projects is assessed according to the system of international indicators, such as: payback period, accounting return on investment;

4) the comparative effectiveness of projects is evaluated.

It is also impossible not to dwell on the problem of inconsistency of performance indicators.

When choosing one of the mutually exclusive projects, a situation may arise where one of them has a higher net present value, another has a higher ROI, and the third has a higher internal rate of return.

Such a situation is called criteria conflict.

Efficiency is a deeper characteristic of the functioning of the system as a whole (both costly and productively). That is why the evaluation and selection of alternative investment projects should be based on performance indicators, and indicators of various types of effects can and should be used as additional ones when making investment decisions.

Based on the above arguments, and also taking into account the basic concept of financial analysis - the concept of limited resources, it is believed that the return on investment index (PI) should be the main criterion for choosing the best of competing investment projects.

The PI index as a performance indicator has a number of undeniable advantages, namely:

1) takes into account the time distribution of real money flows;

2) considers the sum of the effects received throughout the life of the project;

3) allows you to correctly compare projects that differ in their scale ("physical" volumes of investment, production, sales, etc.).

As for the indicator of the internal rate of return, many researchers do not recommend taking it as the main criterion for choosing the best of the alternative projects.

The main claims expressed against this indicator can be reduced to several provisions:

1) the impossibility of choosing among projects that have different life cycles;

2) the impossibility of a correct comparison of projects with different amounts of investment;

3) an unrealistic assumption about the conditions for reinvestment of cash receipts from projects;

4) the multiplicity of values ​​of the internal profitability ratio for projects with an unconventional structure of cash flows.

Unfortunately, the current regulatory documents are focused on the effect indicators when choosing alternative projects.

Guidelines for evaluating the effectiveness of investment projects found that "the main indicator characterizing the absolute and comparative efficiency of investment projects is the value of the expected net cash income."

In accordance with the Regulations on evaluating the effectiveness of investment projects when placing on a competitive basis centralized investment resources of the development budget of the Russian Federation (approved by Decree of the Government of the Russian Federation of November 22.11.1997, 1470 No. effect".

Based on the above analysis, it can be argued that the focus on indicators of the effect created by the project does not stimulate an increase in the efficiency of social production and the optimal use of limited resources.

In this regard, it seems that the main criteria for choosing alternative projects should be the return on investment index and the internal rate of return of the project.

However, one cannot fail to say that in the course of evaluating the effectiveness of investments, it is necessary to remember the possibility of errors and not rely on one criterion, especially since each of them emphasizes some particular aspect of the state of the project.

Only the various criteria taken together provide the most complete picture of the effectiveness of making an investment decision. [2]

LECTURE No. 12. The place of investment in the economic structure

Investments play the most important role in the renewal and increase of productive resources, therefore, in the system of reproduction and ensuring certain rates of economic growth.

Investments relate primarily to production and constitute the material basis for its development, if we imagine social reproduction as a system of production. Investment goods satisfy needs directly, while consumer goods do so indirectly.

They provide the production of consumer goods.

Investments represent the capital with which the national wealth grows.

But the term "capital" does not mean money. Since money, as such, does not produce anything, we cannot speak of it as an economic resource.

Real capital - buildings, equipment, tools, machines and other productive capacities - is an economic resource.

Financial capital, or money, is not such a resource.

Investments are those economic resources that are directed to the expansion or modernization of the production apparatus, that is, to increase the real capital of society.

This can occur through the acquisition of new buildings, machines, vehicles, as well as the construction of bridges, roads and other engineering structures.

This should include the costs of research, education and training.

Investment statistics include only material costs.

It does not take into account the critical investments that go into skills development, education and research.

Private investment is completely focused on making a profit.

Thus, the level of profitability of each individual industry and sub-sector of the economy, an individual organization determines the level of investment preference for this organization, industry and sub-sector.

Profitability, the most important structure-forming criterion that determines the priority of investments.

Non-state sources of investment are directed primarily to highly profitable industries with a fast capital turnover.

Under such conditions, sectors of the economy with a slow payback of invested funds remain underinvested.

Too much investment leads to inflation, and not enough investment leads to deflation.

This should be regulated by an effective strategy in the field of public spending, taxes, financial-budgetary and monetary measures carried out by the government.

In the investment sphere, the transition to market relations concerns its sources.

The investment cycle is the process of formation and use of investment resources, covering a certain period.

For real investments, it includes such stages as: scientific development; design; construction; development of new market territories.

Investments play a major role in the economic process. They determine the overall growth of the economy.

With the help of investing in the economy, production volumes increase, national income increases, enterprises and industries develop and succeed in economic competition, to a greater extent satisfy the need for certain goods and services.

The resulting increase in national income is again partially accumulated, further growth of production is carried out. This process is continuously repeated.

Consequently, investments formed at the expense of national income in the course of its distribution, themselves carry out its growth and expanded reproduction. In this regard, the more effective the investment, the higher the growth of national income, the greater the absolute amount of accumulation (for a given share) that can be reinvested in production.

Given the required high efficiency of investment, increasing growth in national income can lead to an increase in the share of savings with an absolute increase in consumption. [3]

But it is wrong to link the growth of national income only with productive investments, although they directly determine the increase in production capacities and output.

It should be noted that this growth is also significantly affected by investments in the sphere of non-material production.

Moreover, the global trend is that their importance in further building up the economic potential is increasing.

Most of the investment activity falls on the construction sector of the economy.

An integral part of capital investments is capital construction.

As a result of capital construction, only a share of capital investments is carried out, which is equal to the design and estimate cost of construction and installation work on the object under study.

Capital investments - a set of costs that are associated with the creation and renewal of fixed assets of the national economy.

They are intended for economic development, and are a broader concept than capital construction.

Most of the capital investments are made as expenses for the purchase of agricultural machinery, vehicles, equipment that does not require installation.

On the basis of capital investments, the proportions and rates of development of certain branches of the national economy are regulated.

The reproduction of fixed assets of the national economy is carried out through three main channels for the receipt of investment investments:

1) state capital investments;

2) capital investments made at the expense of enterprises and companies;

3) investments made at the expense of the resources of investment funds.

Capital investments include the cost of construction and installation works, the purchase of equipment that requires or does not require installation, provided for in the construction estimates, as well as household equipment included in the estimates.

Of the total amount of investment investments, a significant share falls on capital investments in expanded reproduction, the main source of which is the national income.

The size of these net investments can be judged by the increase in fixed assets, although there may not be an exact correspondence between them for each period of time.

The increase in fixed assets for a certain period is calculated at the cost of completed facilities that are accepted on the balance sheet, and capital investments of a given year are made up of funds released by banks, which are embodied in commissioned and completed fixed assets after a period of time necessary to complete construction.

Another source of capital investment is the depreciation fund.

Significant deterioration of equipment adversely affects the quality of products.

The current standard service life averages 16-17 years, and in fact - even more.

It is advisable to reduce the average standard service life, for example, of equipment to 9-10 years. [4]

In an emerging economy, gross investment is higher than depreciation, which means that the amount of capital is increasing.

Gross investment in a static economy completely replaces the capital used in the production process of the annual output.

There is a shortage of gross investment in the economy to replace the capital consumed in production during the year.

In this regard, there is a decrease in the amount of capital in the economy.

There are technological and reproductive, sectoral and territorial structure of capital investments.

For the technical renovation of production, the use of capital investments for the reconstruction of existing organizations is of great importance.

Therefore, it is very important to establish an appropriate balance between investments in reconstruction, modernization, new construction and an increase in existing production capacities.

The division of capital investments into reconstruction and into new construction is accompanied by their division into intensive and extensive investments.

Investments, the purpose of which is to increase the volume of production on the basis of existing technology and equipment, are investments of an extensive type.

Such investments require the involvement of an additional share of workers, raw materials, energy in proportion to the growth in production volumes, which leads to an increase in the number of jobs and does not reduce the cost of production and capital intensity.

Investments of an intensive type are investments that provide for the introduction of improved or new equipment and technology, the reduction of losses, the use of internal production reserves.

An increase in the efficiency of capital investments can occur primarily through intensive investment. Unfortunately, statistics do not yet distinguish between both types of capital investments.

In the practice of statistical reporting, such distinctions should be introduced. This could serve as a meaningful way to stimulate investment and related taxation policies.

The growth of an intensive type of investment is a criterion for a rapid rise in the material standard of living.

In connection with the growing production apparatus, labor productivity rises.

Therefore, present wealth is largely the result of past investment, and in turn, today's investment is the basis of future productivity growth and wealth growth.

There is a problem of choosing between the consumption of the present and the future.

The more we produce today we save and invest, the more we will be able to consume tomorrow.

On the contrary, the more we use today's resources, the less chance we have of a significant increase in production and a greater level of consumption in the future.

This is the main reason why a low savings rate can become an acute problem for the economy as a whole.

In addition to influencing overall business performance and long-term growth opportunities, investment also has a direct and immediate impact on employment and income. [5]

For example, if investment in construction decreases, unemployment among construction workers rises, their total income decreases, and therefore their demand for goods and services produced in other industries also decreases.

This leads to a reduction in income and a decrease in employment in these industries. In addition, the reduction in investment in construction has a negative impact on those industries that supply materials for the construction itself, on sub-suppliers for the building materials industry, etc.

Investments made by an organization to expand its own production apparatus are a stimulus for the entire economy. The purchase by an organization of investment goods, for example, various kinds of cars, entails an overall increase in demand in the commodity market, which directly contributes to the growth of the entire economy.

Therefore, investments not only affect the increase in capacity in the long run, but also affect the extent to which existing capacity is used. Also, the level of capacity utilization is influenced by investments in inventories, i.e. when the increase in inventories is higher than their consumption.

Therefore, such fluctuations in the investment process are a significant factor in changing growth rates in both the long and short term.

Not every investment has a positive impact on the economic process.

Investments can be erroneous if they were directed to unpromising sectors and areas of production.

This usually happens because of incorrect information about the future.

When the economic management bodies that make investment decisions simply cannot correctly determine which products will be profitable, or when the overall strategy and economic policy are oriented incorrectly.

Misguided investment means wasting resources by tying them up in projects that will not lead to the expected growth of the economy.

And, therefore, they do not represent a reliable source of jobs in the long run.

Scientific knowledge about future demand, about the latest production technology and about the upcoming business environment - is the determining factor for economic growth.

Education, the field of scientific research, is becoming a decisive criterion for economic growth.

In order for economic growth to have a stable level, resources must be invested in those economic sectors that will give the greatest economic effect.

The investment market must be mobile.

Investment must be able to move from stagnating businesses and industries to those with the best prospects.

For economic reasons, there are differences in investment returns.

At the same time, income on industrial investments should be higher than income on alternative investments, such as, for example, investments in bank deposits, gold, antiques, diamonds, etc. Since otherwise there is no economic benefit from investing in production, which in generally associated with risk, and it would be preferable to receive income from more guaranteed operations.

The investment process needs both direct and indirect state regulation, since the profit for entrepreneurs to be able to invest must be sufficient.

If profits become too large by cutting the wage share, this can lead to political tensions and demands for higher wages, which will drastically reduce both profits and the desire to invest.

Ensuring the competitiveness of products by making certain high-tech products of good quality (as opposed to the relative reduction of wages and prices) and receiving a certain payment for it is the way to maintain a balance of payments equilibrium, which means that in this situation there is no need to implement a policy of protectionism or containment.

Thus, high competitiveness is the key to resolving the conflict of goals between external and internal balance.

It is a fundamental prerequisite for the development of the economy as a whole, without unemployment and a deficit in the balance of payments.

But in order to provide the required services and goods, the country must take a leading position in the production of new products and the introduction of new technology.

This, in turn, implies the demand that there be no conservation of resources - people and productive capital - in areas that are suppressed by international competition, instead of, on the contrary, stimulating and supporting structural adjustment and transferring resources from old enterprises and industries to new ones, with through certain investment programs.

At the same time, a long-term policy of raising the level of education of personnel, as well as the dissemination of new equipment and technology, is also needed.

The need for state regulation is increasingly intensified in the context of the existing stagflation.

The fact is that with inflation and a simultaneous decline in production, economic decisions become more short-term, and they become speculative, and investments are reduced, with the exception of those that promise large inflationary profits - but from the point of view of the entire economy, these investments are not so desirable .

And this threatens employment and well-being of the population in the future.

Inflation may be due to a lack of investment goods.

Therefore, anti-inflationary policy should implement measures to overcome this situation: the government and other economic management bodies should establish measures to provide funds for venture capital and investment in organizations.

Inflation is associated with rising prices, and this is the result of a decrease in production efficiency and an increase in unit costs of production.

Under the dominance of the administrative-command system, there is a huge construction sector, which is not very efficient.

Only a huge share of funds is directed there, but there are not enough resources for economic stimulation, modernization of production and growth of labor productivity.

The lack of demand for technological progress was offset by excessive consumption of natural resources and excessive investment.

The cyclic nature of economic development requires a reasonable ratio of innovation and investment.

When guiding the economic process, economic management bodies are faced with a choice: what to have more and what to sacrifice in favor of it.

If resources are consumed completely, then there is no way to get everything at once.

It is necessary to choose what is needed more and sacrifice others in favor of it.

The concept of "decreasing productivity" is that the cost of increasing the product is constantly growing, since the growth of production requires increasing investment of resources.

In order to increase the production of one of the goods, it is necessary to abandon the production of another to a greater extent.

This happens when the economy is on the production possibilities curve.

Here, production is at its maximum level, and resources are fully utilized.

But if the economy were within the segment, then there would be no such need to sacrifice the production of any product in order for there to be an increase in the production of another product.

This means that production resources are being used inefficiently.

It follows from this that all actions have their price. All resources are limited.

By using resources in a different way, one could get a different return.

Using a certain resource, a person binds it and in the meantime loses what it would be possible to get at opportunity costs - thus, this is a "lost" benefit.

Economics deals with choice - it is a choice between the guidelines of the investment strategy, between the production of various goods and services, between different production technologies, while different investments of resources should be rewarded.

Some choices come with costs.

The question is which choice allows you to get more efficiency.

The technical view of the efficiency of investment is that production should occupy a certain position on the production possibilities curve.

But this view is limited in that it does not take into account the needs of the population for those goods that are produced at that time.

The range of goods and services is diverse. They are not easy to navigate.

With an acceptable macroeconomic content for the effectiveness of investments, it is necessary to take into account the needs and wishes of people.

Therefore, an effective set of investments in various industries and areas of the economy on the production possibilities curve should be the point that best meets the needs and desires of people.

The population has a variety of resources that are brought to the market, and people are given the opportunity to choose between different goods and services.

Therefore, every investment of resources and every exchange must be formed in such a way that the costs correspond exactly to the needs that are satisfied as a result of any economic action.

In case of excess of costs and expenses over the effect obtained, it will be necessary to abandon this action.

In economic calculation, the final word belongs to the ratio of benefits and costs following the actions taken by economic entities.

Whether a potential investor will make new investments is determined by what profit is expected to be received from new investments. Whether the enterprise will accept another worker depends on what the new worker brings.

Marginal utility is the benefit received by a business entity from the use of this investment option.

The income that an organization receives from the sale of an additional unit of goods produced in the course of this investment is called marginal.

Marginal productivity is the productivity caused by the additional cost of investment resources.

The additional product that is produced by one more new employee as a result of the expansion of the organization is the marginal product.

These additional business incomes, consumer goods, and the productivity of additional resources are balanced against the marginal cost of additional spending or forgoing certain goods.

The terms "marginal cost", "marginal utility", "marginal product", and "marginal income" are sometimes used.

It is believed that marginal cost (in this type of calculation) usually increases, and the cost of producing an additional unit of a good or service increases.

This is due to declining productivity, which means that relatively more resources must be used to produce an additional unit of a service or good than to produce the previous one.

In the same way, it is believed that negative utility for a person is constantly growing, that is, litigation from additional labor. In other words, each additional hour of labor requires more sacrifice than the previous one.

Marginal utility decreases as the consumption of a good or service increases continuously.

Consequently, the utility from the use or consumption of the first investment will be greater than all subsequent ones, the second - more than those following them, etc.

Based on this, the directions of investment should be determined by the utility, presented as an indicator of specific capital productivity, for all submitted projects.

Given the use case for investments, by choosing the largest of them, we provide ourselves with the highest utility.

After the expiration of time for this project, the indicator of specific capital return will decrease due to the factor of the ongoing saturation of the market with this product or service, and the guidelines for the use of investments must be shifted in order to again ensure the greatest utility from ongoing investment projects.

A similar analysis should be of a permanent nature - this is the success of the economic decisions made.

In the literature, it is sometimes called investment monitoring.

The underdevelopment of this direction of analysis of economic entities under the dominance of the administrative-command system, as well as indifference to the wishes and opinions of consumers, is one of the important reasons for the economic collapse of the Soviet system. Economic decisions and economic exchange must be carried out in such a way that, in each individual case, marginal cost exactly equals or exceeds marginal revenue.

Investments of investment resources should be increased until the effect is clearly visible, that is, the return on these investments.

Further build-up will lead to losses and losses.

From an economic point of view, the effectiveness of rational investment activity means that marginal revenues and marginal costs from ongoing investment programs are an optimum acceptable to society.

Continuation of investment activity should be as long as the marginal cost of investment will not be equal to the marginal income from these investments.

From the point of view of macroeconomic balance, it is this volume of investment activity that provides the highest utility, provided that all significant costs and income from investment activities are included in the analysis.

As long as the marginal income (marginal utility) from any type of investment is higher than the marginal cost, it is more profitable to invest more resources, increase the amount of investment in a given enterprise or in a given sector of economic activity.

As long as the marginal return on investment is higher than the cost of investment, investment programs will continue to be implemented.

As long as the value of the marginal product produced by newly hired workers is higher than the cost of additional wages, organizations will continue to take on new workers.

Otherwise, if the return is lower than the costs incurred, then it is more profitable to reduce the investment of resources and reduce the corresponding activity.

If the investment costs of the enterprise are greater than the marginal income from this type of investment, and the value of the marginal product does not cover the costs associated with wages, then the organization's investment programs will have to be curtailed and the number of workers reduced.

In conclusion, we can say that the cumulative return in the form of profit or utility, which all operating economic entities strive for, reaches its highest value when the return on investing the last unit of the resource is the amount of costs incurred that are necessary to achieve it.

But investment consumers spend money on a variety of goods.

An organization or industry must choose between different alternative types of investment projects.

At the same time, investments in investments must be made in such a way that the increase in utility or profit from the last unit of the investment resource is the same for all ongoing projects and their terms.

Basically, all large firms prefer more understandable, simple and intelligible methods that do not require additional time, since even with complex calculations it is often necessary to proceed from very approximate data, and the resulting solution may not be correct.

Meanwhile, changing competition and market conditions often require hasty decisions.

In the area of ​​investment regulation, the experience gained can be applied to reforms that have led to new changes in the structure of the economy and have mainly been reduced to price liberalization.

The industrial production structure was further deformed.

With a cumulative industrial decline, the production of consumer goods decreases to a greater extent.

The most important feature of the national economy was the increase in the rate of depreciation of existing fixed assets in comparison with the rate of commissioning new ones.

Based on the accumulation, investment and growth of the rate of surplus product, changes in the model of reproduction of production assets, a structural and technological renewal of the production potential takes place.

If the decline in production is stopped, but decisive steps are not taken in resource conservation, then evolutionary trends will hardly affect the increase in national income.

With very slow changes in the macrostructure, more rapid changes in the microstructure must occur, i.e., the exchange of one product for another in accordance with market demand. This basically backfires on changes in the macrostructure as well.

The increase in savings will make it possible to intensify the production of investment goods.

Until the accumulation of a certain amount of financial capital for investment is achieved, structural restructuring in the economy is possible by improving the mechanism of expanded reproduction and maneuvering existing investment resources.

The transfer of investment activity to decentralized sources from centralized ones has led to a certain loss of control over the investment process, to the formation of local and individual programs of accumulation and reproduction, to the use of very insignificant funds for these purposes, even in comparison with the opportunities available to organizations.

A significant share of decentralized savings is not used due to:

1) outpacing rise in prices for machinery and equipment;

2) insufficiency of material resources;

3) the lack of relevant interests and motivation for a sharp technological upgrade, since market mechanisms are not yet in full force, cooperation with suppliers of materials, energy resources, raw materials and components is broken, there are no reliable customers. Therefore, most of the money remains unrealized and the accumulated financial resources are several times higher than the real volume of investments. With appropriate market motivation, this makes it possible not only to maintain and develop vital investment structures, but also to intensify the investment process itself.

To do this, it is necessary to really turn on the regulators of strengthening investment activity, to stimulate it not only by removing taxes on investments, but also by the formation of fairly large budget and extra-budgetary investment and innovation funds, inter-industry and inter-regional cooperation and integration, and the creation of the most favorable conditions for foreign investors.

At the same time, at least 50% of long-term bank loans must be allocated to structural restructuring in the economy. [6]

LECTURE No. 13. Essence and economic nature of investment risk

1. Classification of risks

Determining the level of risk is the final step in investment analysis.

Risk in a market economy accompanies any management decision.

This is especially true for investment decisions, the consequences of which affect the activities of the enterprise over a long period of time.

Identification of risks and their accounting is part of the overall system for ensuring the economic reliability of an economic entity.

The primary goal of the effective functioning of the country's economy is to ensure the economic reliability of its entire system.

First of all, it is the ability of economic and organizational decisions to ensure, within certain limits, the regulation of the system.

It is carried out according to several main characteristics: profitability, financial stability and the required level of risk.

At the same time, risk acts as a link between the profitability and financial stability of each system under consideration, i.e., a business entity (system) realizes its goals at a certain level of risk.

At the same time, cost minimization and sustainability maximization should be ensured.

Risk - this is a consequence of the possible occurrence of an event that appears due to uncertainty with the likelihood of unforeseen financial losses.

The incompleteness or inaccuracy of information about the conditions associated with the execution of individual planning decisions entails certain losses or, in some cases, additional benefits. This is what is called uncertainty.

It is customary to distinguish three types of uncertainty.

1. Lack of information. Ignorance of everything that can affect the activities of the organization.

2. Randomness. In any predictable event, there may be deviations as a result of some random external influences: this is a failure in the operation of equipment, a disruption in the logistics of the production process, and much more.

3. Uncertainty of counteraction. For the company, this is mainly the unpredictable behavior of competitors and customers of products, as well as inter-collective turmoil.

The risk in the analysis of investment projects is the probability of an adverse event, namely the probability of losing the invested capital (part of the capital) or incomplete receipt of the expected income of the investment project.

The main reasons for the uncertainty of the project parameters:

1) incompleteness or inaccuracy of design information;

2) errors in forecasting project parameters;

3) errors in the calculation of project parameters. Simplifications in the formation of models of complex technical or organizational and economic systems;

4) production and technological risk (risk of accidents, equipment failures, etc.);

5) fluctuations in market conditions, prices, exchange rates, etc.;

6) incompleteness and inaccuracy of information on the financial position and business reputation of participating enterprises (possibility of non-payments, bankruptcy, failure of contractual obligations);

7) force majeure circumstances (natural disasters, wars, etc.);

8) the uncertainty of the political situation, the risk of adverse socio-political changes in the country and region;

9) the risk associated with the instability of economic legislation and the current economic situation. Changing the conditions for investment and use of profits.

These uncertainties are typical for any investment projects.

Uncertainty is associated not only with an inaccurate prediction of the future, but also with the fact that the parameters related to the present or past are incomplete, inaccurate, or not yet measured at the time of their inclusion in the design materials.

As an economic category, risk is an event that may or may not occur.

If such an event occurs, three economic outcomes are possible:

1) negative (loss, damage, loss);

2) zero;

3) positive (gain, benefit, profit).

Depending on the event, risks can be divided into two large groups: pure and speculative.

Pure risks means getting a negative or zero result.

Speculative risks means getting both positive and negative results.

The group of pure risks usually includes the following types:

1) natural risks associated with manifestations of the elemental forces of nature: earthquakes, floods, storms, fires, epidemics, etc.;

2) environmental risks, which act as a possibility of losses associated with the deterioration of the environmental situation;

3) socio-political risks associated with the political situation in the country and the activities of the state. This type of risk includes political upheavals, unpredictability of the state's economic policy, changes in legislation, etc.;

4) transport risks - risks associated with the carriage of goods by transport: road, sea, rail, etc.;

5) commercial risks (actually entrepreneurial) represent the risk of losses in the process of financial and economic activity. They mean the uncertainty of the results from this commercial transaction.

On a structural basis, commercial risks are divided as follows:

1) property risks that are associated with the probability of loss of the entrepreneur's property due to theft, negligence, overvoltage of technical and technological systems, etc.;

2) production risks that are associated with a loss from stopping production due to the impact of various factors, and above all with the loss or damage to fixed and working capital (equipment, raw materials, transport, etc.), as well as risks associated with the introduction into production new equipment and technology;

3) trading risks that are associated with a loss due to delayed payments, refusal to pay during the period of transportation of goods, non-delivery of goods, etc.

The group of speculative risks usually includes all types of financial risks that are part of commercial risks. Financial risks are associated with the probability of loss of financial resources (cash) and are divided into two types:

1) risks associated with the purchasing power of money;

2) risks associated with capital investment (investment risks proper).

Purchasing power risks include:

1) inflationary risks - with the growth of inflation, the received cash incomes depreciate in terms of real purchasing power faster than they grow. Under such conditions, the entrepreneur bears real losses;

2) deflationary risks - with the growth of deflation, there is a fall in the price level, a deterioration in the economic conditions for entrepreneurship and a decrease in income;

3) currency risks - the danger of currency losses associated with a change in the exchange rate of one foreign currency against another when conducting foreign economic, credit and other currency transactions;

4) liquidity risks associated with the possibility of losses in the sale of securities or other goods due to changes in the assessment of their quality and use value.

The risks associated with investing capital - investment risks - are:

1) risks of lost profits - risks of indirect financial damage (lost profit) as a result of non-implementation of any event (for example, investment, insurance, etc.);

2) risks of reduced profitability that may arise as a result of a decrease in the amount of interest and dividends on portfolio investments, deposits, loans;

3) risks of direct financial losses, which are divided into the following varieties:

a) exchange risks - the danger of losses from exchange transactions. These risks include the risk of non-payment on commercial transactions, the risk of non-payment of commission fees of a brokerage firm, etc.;

b) selective risks - these are the risks of incorrect choice of types of capital investment, type of securities (project) for investment in comparison with other types of securities (projects) when forming an investment portfolio;

c) Bankruptcy risks - danger resulting from the wrong choice of capital investment of complete loss by the entrepreneur of his own capital and his inability to pay off his obligations;

d) credit risks associated with the loss of funds due to non-compliance with obligations on the part of the issuer, borrower or its guarantor. To a greater extent inherent in banking activities. In turn, they can be divided into components: deposit, leasing, factoring, the risk of default on the loan.

From the point of view of the source of occurrence, the risks of an investment project are divided into two groups:

1) specific (non-systematic, microeconomic) investment risks - the risks of the project itself, associated with its individual characteristics;

2) non-specific (systematic, macroeconomic) investment risks - risks caused by circumstances external to the project of a macroeconomic, regional, sectoral nature. Thus, non-specific risk depends on industry specifics and the location of the project.

Another classifier is degree of damage.

In accordance with it, project risks are divided into:

1) partial, when the planned indicators, actions, results are partially fulfilled, but without loss;

2) acceptable, when the planned indicators, actions, results are not fulfilled, but there are no losses;

3) critical, when the planned indicators, actions, results are not fulfilled, there are certain losses;

4) catastrophic, when failure to fulfill the planned result entails the destruction of the subject (project, enterprise).

Depending on the possibility of reducing the degree of risk through diversification, risks are divided as follows:

1) diversifiable, which can be eliminated or smoothed out by diversifying the investment portfolio (the right choice and combination of the investment object);

2) non-diversifiable, which cannot be reduced by changing the structure of the investment portfolio. Most often, this group includes all types of systematic risks. By the time of occurrence of the risks of the investment project, we can distinguish:

1) risks arising at the preparatory stage. These are, for example, such factors and actions as remoteness from transport hubs; availability of alternative sources of raw materials; preparation of legal documents; organization of financing and credit insurance; formation of administration; creation of a dealer network, repair and maintenance centers;

2) risks associated with the creation of the object. These include the insolvency of the customer, unforeseen costs, shortcomings in design and survey work, untimely delivery of components, dishonesty of the contractor, untimely preparation of engineers and workers;

3) risks in connection with the operation of the facility. At this stage, risks may appear:

a) financial and economic - instability of demand, the emergence of an alternative product, lower prices by competitors, increased production from competitors, higher taxes, insolvency of consumers, higher prices for raw materials, materials, transportation, dependence on suppliers, lack of working capital;

b) social - difficulties in recruiting qualified labor, the threat of strikes, the attitude of local authorities, insufficient wages to retain staff, insufficient qualifications of personnel;

c) technical - instability of the quality of raw materials and materials, novelty of technology, insufficient reliability of technology, lack of power reserve;

d) environmental - the probability of volley emissions, the harmfulness of production.

All types of risks considered have an impact on investment projects to one degree or another. [7]

The above classifications cannot be comprehensive.

They are determined by the goal formulated by the classification feature.

It is rather difficult to draw a clear line between individual types of project risks.

A number of risks are interrelated (these risks are correlated), changes in one of them cause changes in the other.

In such cases, the analyst should be guided by common sense and his understanding of the problem.

The decision to implement an investment project is made after analyzing its financial feasibility and evaluating the effectiveness of the project.

Depending on what values ​​these uncertainties take, the implementation of the project will take place in different ways and under different conditions.

In this regard, they talk about various scenarios for the implementation of the project.

Obviously, the feasibility and effectiveness of the project depend on the conditions of its implementation.

At the same time, uncertainty also occurs when it is known that the project will be implemented in different conditions, but it is not known in which ones. Unlike uncertainty, which is an objective concept (if information is incomplete, then it is incomplete for everyone), the concept of risk is subjective. One and the same change in the conditions for the implementation of the project can be assessed by one participant as significant and (or) negative, and the other - as insignificant and (or) positive.

Therefore, each participant sees "their own" risks in the same project. For example, for a lender, a risk event is the failure to repay a loan, and for a borrower, its non-receipt or untimely receipt.

Despite the potential negative consequences and losses caused by the onset of one or another risk factor, the project risk is nevertheless a kind of "engine of progress", a source of possible profit.

Thus, the task of the decision maker is not to avoid risks in general, but to make a decision taking into account the investment risk.

There are several stages of "introducing" risk into investment analysis. On the first stage it is necessary to conduct a qualitative analysis of the project risk. Its main task is to determine the risk factors, stages and work during which the risk arises. Only then are all possible risks identified. On the second stage it is necessary to carry out a quantitative risk analysis, namely, to determine the degree of both each type of risk and the investment risk of the project as a whole. On the third stage it is necessary to move from assessing the effectiveness of a project that is precisely defined in all details to assessing the financial feasibility and effectiveness of the project under conditions of uncertainty and measured risk.

On the fourth and final stage measures are being developed to reduce the risk of the investment project under consideration.

To do this, it is necessary to return to the previous stage of the analysis and re-evaluate the effectiveness of the project, taking into account the planned activities.

2. Project risk assessment procedures

Risk analysis can be divided into two types: qualitative and quantitative. They complement each other.

Qualitative analysis is carried out in order to identify risk factors, stages and activities during which the risk arises.

This means identifying potential risk areas and then identifying all possible risks.

Quantitative analysis aims to quantify the size of individual risks and the risk of the project as a whole. This type of analysis is associated with risk assessment.

The methodology for a qualitative assessment of project risks outwardly seems very simple, but it should lead to a quantitative result, to a cost assessment of the identified risks, their negative consequences and stabilization measures.

All factors influencing the growth of the degree of risk can be conditionally divided into two groups: objective and subjective.

Objective factors include factors that do not directly depend on the firm itself.

These are inflation, competition, political and economic crises, ecology, etc.

To subjective factors - directly characterizing the given firm.

This is the production potential, technical equipment, the level of subject and technological specialization, labor organization, the level of labor productivity, the degree of cooperative ties, the choice of the type of contracts with an investor or customer, etc.

At the stage of qualitative analysis, an inventory of all types of project risks is required, which is carried out using the above classifications, and a detailed verbal description of each type of risk affecting the investment project under consideration.

In addition, it is necessary to describe and give a cost estimate of all possible consequences of the hypothetical implementation of the identified risks and propose measures to minimize or compensate for these consequences by calculating the cost estimate of these measures.

It is necessary to emphasize the possibility of constructing and using the "decision tree" method not only in the course of making investment decisions, but also in the process of project implementation.

Changes in the circumstances of the project's external environment may require a change to a different branch of decision making.

The presence of a constructed step-by-step scheme in the form of a "decision tree" will allow the analyst to calculate the risk of such a development of events and minimize the company's losses.

The application of this method is usually used to analyze the risks of those projects that have a foreseeable number of development options.

Otherwise, the "decision tree" takes on a very large volume, so that it is difficult not only to calculate the optimal solution, but also to determine the data.

The method is useful in situations where later decisions are highly dependent on decisions made earlier, but in turn determine the further development of events.

Monte Carlo method. Simulation modeling, one of the most powerful tools for analyzing economic systems, allows us to overcome many of the shortcomings inherent in the considered methods for analyzing the effectiveness of projects under risk conditions.

The basis of simulation modeling and its special case (stochastic simulation) is the Monte Carlo method, which is a synthesis and development of sensitivity analysis and scenario analysis methods.

Simulation modeling of investment project risks is a series of numerical experiments designed to obtain empirical estimates of the degree of influence of various factors (output volume, price, variable costs, etc.) on the results that depend on them.

The simulation experiment is divided into the following stages.

1) relationships are established between the initial and output indicators in the form of a mathematical equation or inequality. The resulting indicator is usually one of the performance criteria (NPV, PI, IRR);

2) probability distribution laws are set for the key parameters of the model;

3) computer simulation of the values ​​of the key parameters of the model is carried out (using programs such as Excel or special software products, such as Risk Master);

4) the main characteristics of the distributions of incoming and outgoing indicators are calculated;

5) an analysis of the results obtained is carried out and a decision is made.

This method makes it possible to fully take into account the entire range of uncertainties in the initial parameters of the project that its implementation may encounter.

In addition, by initially setting restrictions on the required project performance indicators, it is possible to widely use the information base for conducting project risk analysis.

Thus, the Monte Carlo method makes it possible to obtain interval values ​​of project risk indicators, within which the successful implementation of a real investment project is possible.

The methodology for assessing the risks associated with investment, based on the use of the considered and other special methods, is described in detail in the special literature.

The choice of specific methods for assessing the risks of real investment is determined by a number of factors:

1) type of investment risk;

2) the completeness and reliability of the information base formed to assess the level of probability of various investment risks;

3) the level of qualification of investment managers who carry out the assessment;

4) technical and software equipment of investment managers, the possibility of using modern computer technologies for such an assessment;

5) the possibility of involving qualified experts, etc. in the assessment of complex investment risks [8]

3. Ways to reduce investment risk

Understanding the nature of investment risk and its quantitative assessment does not always allow one to effectively manage long-term investments. In the first place are the ways and methods of direct influence on the level of risk in order to minimize it, increase the safety and financial stability of the project developer.

Risk reduction activities are carried out in two directions:

1) avoiding the occurrence of possible risks;

2) reducing the impact of risk on the results of production and financial activities.

The first direction is to try to avoid any possible risk for the firm. The decision to abandon risk can be made at the decision stage, as well as by abandoning some type of activity in which the firm is already involved.

The avoidance of possible risks includes the refusal to use large amounts of borrowed capital (avoidance of financial risk is achieved), the refusal to excessive use of investment assets in low-liquid forms (avoidance of the risk of a decrease in liquidity).

This direction of risk reduction is the simplest and most radical.

It allows you to completely avoid possible losses, but also does not make it possible to receive the amount of profit that is associated with risky activities.

In order to reduce the impact of risks, there are two ways:

1) take measures to ensure the fulfillment of contractual obligations at the stage of concluding contracts;

2) exercise control over management decisions in the process of project implementation.

There are several options for the first path:

1) insurance;

2) security (in the case of a loan agreement) in the form of a pledge, guarantee, surety, forfeit or retention of the debtor's property;

3) step-by-step division of the project appropriation approval process;

4) diversification of investments.

Options for management decisions in order to reduce risk can be carried out by the following methods:

1) reserving funds to cover unforeseen expenses;

2) restructuring of loans.

Consider some of the ways to reduce project risk.

One of the most important ways to reduce investment risk is diversification, for example, the distribution of an enterprise's efforts between activities, the results of which are not directly related to each other.

Any investment decision related to a particular project requires the decision maker to consider the project in relation to other projects and existing activities of the enterprise.

To reduce risk, it is desirable to plan the production of such goods or services, the demand for which changes in opposite directions.

Distribution of project risk between project participants is an effective way to reduce it, it is based on the partial transfer of risks to partners in individual investment situations.

In this case, it is most logical to make responsible the one of the participants who has the ability to more accurately and better calculate and control the risk.

The distribution of risk is taken into account when developing the financial plan of the project and is formalized in contract documents.

A possible way to reduce risk is to insurance, which essentially consists in the transfer of certain risks to the insurance company. When making a decision on external risk insurance, it is necessary to evaluate the effectiveness of this method of risk reduction, taking into account the following parameters:

1) the probability of occurrence of an insured event for this type of project risk;

2) the degree of insurance coverage for risk, determined by the insurance coefficient (the ratio of the sum insured to the size of the insurance valuation of the property);

3) the size of the insurance tariff in comparison with its average size in the insurance market for this type of insurance;

4) the amount of the insurance premium and the procedure for its payment during the insurance period, etc.

Foreign practice of insurance uses full insurance of investment projects.

The conditions of Russian reality allow so far only partially insure project risks: buildings, equipment, personnel, some extreme situations.

Reservation of funds to cover unforeseen expenses - one of the most common ways to reduce the risk of an investment project.

It provides for the establishment of a relationship between potential risks that change the cost of the project, and the amount of costs associated with overcoming violations during its implementation.

Foreign experience allows an increase in project cost from 7 to 12% due to reservations for force majeure.

Russian experts recommend the following contingency rates (Table 1).

Table 1

Recommended contingency reserve ratios [9]

In addition to reserving for force majeure, it is necessary to create a system of reserves at the enterprise for optimal cash flow management.

We are talking about the formation of a reserve fund, a fund for the repayment of uncollectible receivables, maintaining the optimal level of inventories and the regulatory balance of cash and their equivalents.

Reservation of funds is essentially self-insurance (internal insurance) of the enterprise.

At the same time, it should be borne in mind that insurance reserves in all their forms, although they allow you to quickly compensate for the losses incurred, however, "freeze" the use of a fairly tangible amount of investment resources.

As a result, the efficiency of using the company's own capital decreases, and its dependence on external sources of financing increases.

Limitation as a way to reduce risks, it consists in setting by the company the maximum allowable amount of funds for the performance of certain operations (or stages of the project), in the event of the loss of which this will not significantly affect the financial condition of the enterprise.

Limitation is used by banks when issuing loans, industrial enterprises - when selling goods on credit, determining the amount of capital investments, determining the amount of borrowed funds, and also in other situations.

An important role in reducing the risks of an investment project is played by acquisition of additional information. The purpose of such an acquisition is to clarify some project parameters, increase the level of reliability and reliability of the initial information, which will reduce the likelihood of making an inefficient decision. Ways to obtain additional information include purchasing it from other organizations, conducting an additional experiment, etc.

Complete and reliable information is a special kind of commodity that you have to pay for, but these costs are repaid by obtaining significant benefits from less risky investments.

Considering all of the above, it can be concluded that at present the need for risk assessment of investment projects is no longer in doubt, although the assessment process is imprecise and there is often a temptation to ignore risk considerations because they are vague.

However, project risk should be assessed and included in the investment decision process.

In Russia, due to exceptionally high economic and political instability, the ability to analyze possible risks is of particular importance.

So, from the above it follows: the risk in a market economy accompanies any managerial decision.

This is especially true for investment decisions, the consequences of which affect the activities of the enterprise over a long period of time.

Investment activity is associated with many types of risks that can be classified according to various criteria: by the stages of the project, by financial consequences, by sources of occurrence, if diversification is possible, by the level of financial losses, etc.

Uncertainty in investment analysis is understood as the possibility of different scenarios for the implementation of the project, the occurrence of which occurs due to the incompleteness or inaccuracy of information about the conditions for the implementation of the investment project.

Risk in investment analysis is understood as the probability of an unfavorable event (scenario) occurring, namely the probability of losing the invested capital (part of the capital) and (or) not receiving the expected income of the investment project.

Profitability and risk are interrelated categories. More risky investment options are characterized by a higher yield, while less risky ones have a low, but practically guaranteed income.

LECTURE No. 14. The investment crisis in Russia

From what has been said earlier, it follows that investments represent a special economic category of expanded reproduction. They play an important role in the implementation of structural changes in the economy and organization of national economic proportions at the macro level, adequate to market forms of management.

During the formation of the national economy in investment activity, there are a number of extremely important general patterns that give rise to common features due to the formation of the national market, changes in economic priorities, and the desire to integrate the economy into the world economy. In this regard, the investment process is considered as the result of the interaction of these factors. In Russia, a crisis situation has now developed, which has actually slowed down the investment process both at the micro and macro levels.

This manifested itself in an absolute decrease in the volume of capital investments and a disruption in the structure of the sources of their formation, a rapid decline in real production accumulation.

First of all, the search for ways of economic stabilization presupposes the intensification of investment activity, which should be oriented towards fundamental transformations of the structure.

This applies to such a basic proportion of reproduction as the ratio between the accumulation and consumption funds as part of the national income.

Based on the actual data, it can be said that the current recession in the economy has produced a significant increase in the rate of accumulation, but this is an erroneous conclusion, because huge reserves of finished unsold products are attributed to accumulation.

The real accumulation of means of production tends to continuously decrease, which has a negative effect on the level of consumption of the population and production.

Therefore, the stability of the national economy will inevitably be accompanied by an increase in the rate of real production accumulation.

This is convincingly evidenced by the experience of other countries that have experienced similar economic shocks.

Life experience and world practice show that a significant increase in welfare is achieved with the help of a sufficiently high level and high growth rates of national income.

But in order to maintain the rate of production accumulation at a sufficiently high level, certain conditions are needed, namely: a high or gradually growing level of production efficiency.

Therefore, an important feature of the modern investment strategy should be an increase in the efficiency of the national economy, which would be able to expand the boundaries of accumulation, stop the decline, and then stabilize the rate of production accumulation.

The portion of the accumulation fund in the national income must constantly be set at a level that the economy can effectively assimilate and which, at the same time, would make it possible to achieve at the present time the highest level of achievements of the scientific and technological revolution.

The organization of a more progressive type of investment creates the need to improve the structure of capital investments in the main production, social and industrial infrastructure.

From the assessment of investment activity in the field of production, the following conclusion follows: the reorientation of certain resources to the development of industries that meet the needs of the population should be the goal of investment programs.

At the same time, it is necessary to include the sectors of social infrastructure in the list of priority areas.

The assessment also shows that at present capital investments are mainly formed in the area of ​​the main production. The lack of a developed service sector negatively affects the efficiency of production activities. Therefore, the investment strategy in our time should be focused on meeting the needs, first of all, of those industries that serve and supplement the main production.

In recent years, there has been a rapid reduction in the costs of socio-cultural needs, science and scientific services, which led to the final decline of this area.

When determining the priorities of capital investments in the main production, social and industrial infrastructure, it seems expedient to proceed from the main criterion - the indicator of investment efficiency.

But at the same time, it is necessary to develop ways to account for the created product in the areas of non-material and material production.

The global proportions of the national economy are formed on the basis of a certain sectoral structure of investments.

Primary industries occupy a high proportion.

At present, the task is to make more consumer goods and finished means of labor out of the intermediate product.

The analysis showed that recently a significant part of investment resources has been invested in industry. There is also a significant weakening of investment activity in such sectors of the national economy as construction and agriculture. Basically, in the conditions of economic growth, the sectoral investment structure should change so that the share of those sectors in which there is a large return on capital increases.

On the basis of this indicator, we can conclude that the most priority direction of the state investment policy should be some reorientation of capital investments in favor of agriculture and investment sectors.

This is a general conclusion, since each industry has its own sub-sectors and various organizations with unequal production efficiency, because of this, the priority development of the most progressive of them can have a decisive effect on the well-being of the economic situation in the entire industry.

The sectoral structure of investments cannot be considered optimal, since it reproduces the far from perfect sectoral structure of the economy as a whole.

To overcome this situation, the development of market relations, the expansion of private entrepreneurship, for example, in the field of industrial and financial infrastructures, in the provision of consumer and industrial services, the privatization of consumer service organizations and the investment of market forms of these areas, are of great importance.

It follows from the analysis that the main directions for increasing the efficiency of investment activity in the current period and in the near future will be:

1) improving the structure of the reproduction of capital investments, increasing the share of costs for technical re-equipment and reconstruction of existing organizations by reducing the share of new construction in the production sector;

2) improvement of the technological structure of capital investments, an increase in the proportion of equipment in their composition and a decrease, respectively, in construction and installation works;

3) a change in the sectoral structure of investment in terms of a certain increase in the standard of living of the population in favor of industries that produce food and personal consumption goods (processing industries, agriculture, food and light industry), the service sector;

4) increasing the volume of capital investments for the construction of comfortable housing and other facilities for medical support and public use; balance of the investment cycle;

5) special provision of capital investments for progressive areas of scientific and technological progress, contributing to a reduction in the resource intensity of production and an increase in product quality.

There is no doubt that in modern conditions it is practically impossible to use the Law "On Foreign Investments in the RSFSR": it is outdated and has largely lost its significance. However, in addition to the natural aging process, its unsuitability is the result of later adjustments.

Characteristically, during the entire existence of the Law, none of them has been properly implemented, i.e. in the form of legislatively formalized "amendments and additions to the Law", which is a common procedure in states with a high legal culture.

The domestic system of "modernization" is based on the publication of numerous legislative acts of a lower order, most of which are departmental.

By the way, many of these amendments do not have mandatory (for entry into force) registration details of the Ministry of Justice of the Russian Federation, and, consequently, no expert assessment.

Often, amendments and additions contradict each other and, worst of all, "repeal" the provisions of the Law - a document of the highest legal rank.

The need to eliminate such practices is constantly pointed out; nevertheless, it continues, as evidenced by these documents.

Meanwhile, several new versions of the law on foreign investment in Russia have been "walking" in the State Duma for the third year in a row, including a version that has the code name "Amendments to the Law on Foreign Investments of 1991".

Finally, against the general background of the "fight against arrears" and the desire to fill the budget at any cost, the meaning of the issued documents is obvious. But the fact is that these resolutions and materials of the State Civil Code of the Russian Federation were issued, it seems, not in the best times for joint ventures.

Bureaucracy to the extreme, all conceivable forms of extortion have made foreign investors even more dependent on purely subjective factors and, consequently, even less interested in mutual cooperation. Another reason for the restrictions being introduced is the growing campaign to limit the penetration of foreign capital into the country - supposedly a source of threat to the domestic economy. Indeed, it is not uncommon for countries to take appropriate protective and restrictive measures both in general and in relation to individual sectors of the economy.

It seems that, in a balanced assessment of the current state of the national economy and the results of more than modest, despite almost five years of experience, foreign direct investment, it will be difficult to detect a danger to the Russian economy, at least from this side.

By studying the experience of countries where various forms of collective investment have clearly demonstrated their own advantages, a number of conclusions can be drawn.

From the implementation of collective investments in Russia, first of all, the population benefits, since with their help the inflow of capital investments into the economy will increase, this will create favorable conditions for economic growth.

Tax revenues will increase, and as a result, financing of budgetary organizations and social programs will improve. Demand for government securities will increase with a simultaneous decrease in borrowing prices.

In addition, the opportunities for citizens to increase and maintain their own savings are expanding.

The variety of opportunities to meet the investment needs of the population in itself can protect their interests and increase confidence in a market economy.

The development of the country's economy will also be positively affected by increased competition among collective investors and commercial banks for the funds of the population - financial resources will be more accessible to enterprises.

And in this case, as expected, there will be an increase in prices for the shares of organizations, not banks, but a large number of owner-shareholders will benefit from this. What is needed for all these collective investment opportunities to be fully realized in Russia? First of all, the country needs to improve the socio-economic situation, and subsequently - the development of the financial market.

For collective investment, the state needs to take care of expanding the range of objects, in particular, expanding the corporate securities market.

It is necessary to adopt legislation, which is lacking and which fully takes into account modern realities, unified requirements for the actions of any form of collective investment, protects the interests and rights of investors, and ensures the reliability of investments.

It is required to abandon the double taxation of corporate papers.

However, even with the implementation of all these conditions, it takes some time to develop the professionalism of management firms, their ability to navigate the financial market.

So that the proceeds from successfully invested assets of funds (joint-stock, mutual, pension) and credit consumer cooperatives have time to arrive.

So that the merits of mutual, cross-control of those who ensure the activities of the fund are manifested in Russia as well.

To really earn competition for investors' money both within each form of collective investment, and between forms, as well as between them and banks.

Attracting large amounts of foreign and national investments in the Russian economy pursues strategic goals for the future creation in Russia of a socially oriented, civilized society, which is characterized by a high quality of living standards, based on a mixed economy, which involves not only the effective joint functioning of different forms of ownership , but also the internationalization of the labor force, the market for goods, capital.

Foreign capital can bring to Russia the achievements of scientific and technological progress and the experience of advanced management. Consequently, the attraction of foreign capital and the inclusion of Russia in the world economy is a necessary condition for building a modern civil society in the country.

The involvement of foreign capital in material production is more profitable than taking loans to buy the necessary goods.

Credits are still haphazardly spent and only increase public debt.

The flow of foreign investment is also very important for achieving the medium-term goals of overcoming the economic crisis of modern society, stopping the decline in production.

It must be borne in mind that the interests of Russian society on the one hand, and foreign investors on the other, do not directly coincide.

Russia's interests are in renewing its production potential, replenishing the consumer market with inexpensive and high-quality goods, developing and restructuring its export potential, implementing an anti-import policy, and introducing a Western managerial culture into Russian society.

Foreign investors are naturally interested in the new territory to generate income from the vast Russian domestic market, its natural resources, cheap and skilled labor, the achievements of domestic science and technology, and even its environmental carelessness.

Therefore, Russia faces a difficult and very delicate task: to attract foreign capital to the state, directing it by methods of economic regulation of social goals, in turn without depriving itself of its own incentives. When attracting foreign capital, discrimination against national investors should not be allowed.

Organizations with foreign investment should not be granted tax benefits that Russian companies employed in the same field of activity do not have.

Based on experience, this measure has practically no effect on the investment activity of foreign capital, but it can lead to the emergence of companies with the formal participation of foreigners claiming tax benefits in place of former domestic production facilities.

It is necessary to strive to create a favorable investment climate both for foreign investors and for our own. Russian private capital also needs guarantees against arbitrariness of the authorities and forced seizures, stability in work when making long-term capital investments, and a system of insurance against non-commercial risks.

LECTURE No. 15. The impact of investments on the implementation of structural changes in the Russian economy

Investments in the economic system perform three main functions:

1) ensure the growth and quality of fixed capital;

2) carry out structural economic shifts;

3) accelerate the implementation of the latest achievements of scientific and technological progress.

Of great importance is the ratio between accumulation and consumption as part of the national income.

When considering the problems of expanded reproduction, special attention is usually paid to accumulation. This is the main lever for ensuring economic growth and improving the living standards of the population. At the same time, the investment process is considered as an integral part of the accumulation process. These are, although in many respects similar, but still different in their content processes. The reproductive process involves balancing investments.

Therefore, in order to get out of the current crisis situation in Russia, it is necessary to achieve a balance of proportions: investment fund - accumulation fund - consumption fund.

The theoretical model of the relationship between these funds can be represented as follows.

First, the logical goal of the entire reproductive process is consumption. If investment and accumulation are torn away from this goal, then they become meaningless and a heavy burden falls on the shoulders of the people, at the expense of which these irrational expenses must be compensated. The optimization of the economic structure requires that savings and investments should be of a consumer nature from the very beginning, in the short or long term.

Secondly, the main logical purpose of investment is to ensure the growth of national income, and in its composition - savings and consumption funds. Moreover, this growth must be carried out in such a way that each additional unit of capital investment provides a greater increase in income than the costs that caused it. This is an indispensable requirement for the optimal functioning of the economy. To analyze this dependence, it is advisable to use limiting values: marginal capital investment and marginal income. Based on the fact that at any given moment an increase in investment is accompanied by a decrease in their return, marginal income decreases, while specific capital costs increase. [10]

The optimal point is at the intersection of the marginal revenue and marginal investment cost curves. On the graph, this can be represented as follows (Fig. 1).

Rice. 1. The ratio of marginal investment investments and marginal income.

R - income;

MR - marginal revenue;

MC - marginal investment;

Q - the amount of investment.

Thirdly, optimal functioning assumes that the investments made not only cause an increase in national income, but also cause an increase in the consumer fund. This can be achieved under the following conditions:

1) when a constant rate of accumulation is maintained;

2) when it decreases, but this decrease is compensated by an increase in the return of accumulated resources.

This, in turn, requires a certain investment policy that determines not only economic growth, but also the distribution of investment resources between the relevant sectors of the economy in such a way that it equally determines the growth of both investment industries and industries producing consumer goods and services.

There is also an inverse relationship, namely: the increase in national income is the most important source of expansion of investment. Consequently, accumulation and investment activity are closely interrelated.

This is clearly visible when we consider capital investments in dynamics (in comparable prices) and compare them with the dynamics of national income in its physical volume (i.e., also in comparable prices). The absolute size of accumulation and capital investment in expanded reproduction depends on the volume of national income for a given share of accumulation. The greater the national income, the greater the savings, and for a given share of it, the greater the funds allocated for capital investments. [eleven]

And vice versa, the greater the investment and the increase in production assets caused by them, the higher the possibilities of increasing the physical volume of the national income.

The level of efficiency of investments in investments is also very important.

The greater the efficiency of the investments used, the more fully and quickly they are embodied in fixed assets, the more progressive and higher the technical level of these funds, the higher the quality of construction work, the greater the growth in production, labor productivity in the national economy, and the increase in physical national volume.

Ultimately, the choice of the most efficient production method is carried out only through the implementation of one or another investment program. The production function used in economic analysis describes technologically efficient methods of production.

When maximizing the amount of profit, the enterprise must choose from the list of investment projects that represent technologically efficient production methods, the one that helps to minimize costs, or, in other words, the most cost-effective way. Consideration of the functional structure of the gross domestic product, more precisely, of its part used for capital investments, is of great importance in economic analysis. Based on these materials of the economic development of countries, one can see the emerging relationships between the structure of the gross domestic product and the dynamics of its investments.

In the post-war years, the level of capital investment in developed countries was higher than in the years preceding the Second World War, which became a special factor in the expansion of the domestic market and the main reason for a certain acceleration in production rates in these countries.

A higher level of capital investment is maintained in them with the help of large investments in the development of new industries and the radical reconstruction of production.

Government policy also plays a significant role, which, with the help of accelerated depreciation and tax levers, pushes companies and enterprises to increase capital investments. In more developed countries, 30-40% of capital investments are carried out by the state itself.

It finances investments in manufacturing industries and some sectors of social infrastructure, and in some countries also in housing construction. The highest level of capital investment in the postwar years is characteristic of Japan. This trend continued into the 1990s. A lower level of investment is a feature that characterizes the economic development of England and the USA (Table 2). The data presented in Table 2 can be general guidelines for optimizing the ratio of investments and the structure of Russia's gross national product.

It should be noted that in Russia the share of capital investments in the gross domestic product is somewhat lower than in the developed countries of the West. But in general, the differences are insignificant, which creates the appearance of the well-being of the economy.

This currently has a decisive impact on the dynamics of the ratio of investment and savings and consumption funds. [12]

Table 2

Structure of consumption of gross domestic product of developed countries,%

Common sense and world practice show that a certain increase in the well-being of the people is achieved not by reducing the rate of accumulation, but, on the contrary, with its sufficiently high growth rates and a high level of national income. To maintain the rate of production accumulation at a sufficiently high level, appropriate conditions are needed, such as: a high or continuously increasing level of production efficiency, i.e., an increase in the return on production costs.

In other words, each cycle of reproduction must be carried out at a higher technical level. Only under this condition it becomes expedient to increase investment costs.

Therefore, an important feature of the modern investment strategy is such an increase in the efficiency of the national economy, which will expand the boundaries of accumulation, stop the decline, and subsequently stabilize the rate of production accumulation.

In recent years, there has been a decrease in the rate of production accumulation, which was caused by a reduction in the return on assets. If the return on the resources used decreases below the equilibrium point, then their accumulation becomes unprofitable, since the costs (i.e., capital investments) exceed the income received from their investment - the return. In addition, this may lead to an absolute decrease in the consumption fund. In the 1990s the investment sphere experienced extremely great tension.

At that time, funds were spent not so much and not only to increase the technical production level, but in all significant amounts - to compensate for its declining efficiency. As a result, there is an overaccumulation of the production apparatus on a backward, low technical and technological base.

In the conditions of the prevailing situation of economic instability, with a high level of inflation, to make intensive investments in the sphere of production, to make intensive accumulation becomes absolutely meaningless.

In addition, the existing investment complex in Russia is inefficient and cumbersome, and the investment cycle is unreasonably extended in time. From the resources used, the return is usually expected in 15-20 years. This is quite a long time. From the invested funds, given the pace of the modern scientific and technological revolution, in general, you can get absolutely no effect, but, on the contrary, be at a loss.

In such situations, the fundamental contradiction between consumption and accumulation is not resolved: accumulation at the present time is not realized by a corresponding increase in consumption in the future, that is, the future is extremely distant. The modern scientific and technological revolution requires that the investments made begin to give a return in 1,5-2 years: only with such terms is the contradiction between accumulation and consumption found.

Stretching the terms of construction and development of production facilities for a period of more than 10 years turns investment activity into a cost area for many years.

It is clear that under these conditions maintaining the rate of accumulation at a sufficiently high level is unacceptable, because it increases the already unbridled inflation and contributes to the "overheating" of the economy. Therefore, under such conditions, only a radical improvement in the structure of accumulation, in other words, the structure of investment, will lead to an increase in the economic efficiency of the national economy, and further to an increase in the level and quality of consumption.

As is known, accumulation until very recently did not fulfill its role in reproduction, namely: it did not serve as an effective factor in the development of the national economy. The predominant place in accumulation was occupied by expenses for military production, and in general all economic development was subordinated to military needs. Personal consumption came last. Due to this state of affairs, the national economy could not and cannot properly absorb the high rate of accumulation. [13]

This manifests itself, in particular, in the following:

1) the "repair" character of accumulation;

2) extremely low technical level of the civil sector of the economy;

3) huge construction in progress;

4) extended investment cycle;

5) construction of facilities according to outdated projects.

It follows from the foregoing that it is economically justified to reduce the rate of production accumulation in the Russian economy in recent years. The replication of obsolete equipment that produces goods that cannot withstand any competition on the world market, that do not fully satisfy people's needs for high-quality everyday goods is completely unnecessary. In this case, it is better to stop the dissipation of financial and material resources, stop the unjustified use of resources. In fact, it is possible to expand production on a technical and technological basis only when the sector of the economy that produces investment goods is restructured in a timely manner.

Today, mechanical engineering, for example, can ensure a large rate of accumulation only by increasing the output of unreliable and traditionally archaic equipment. It follows from this that this form of investment should be abandoned. But it is not so easy to make the transition to a more progressive type of accumulation. This requires quite a lot of money, and most importantly - time.

Based on this, conclusions follow: in the national income, the share of the accumulation fund should always be set at such a level that the economy can effectively master it; the rate and accumulation fund at a certain moment should be set at a level that would allow mastering the highest level of achievements of the scientific and technological revolution at that moment. If there are no certain effective technical and technological innovations, then accumulation becomes inexpedient. It will not provide a corresponding increase in quality and consumption. If there are such innovations, then the means, whatever they may be, will pay off handsomely. Therefore, it is unacceptable to talk about whether the rate of accumulation is low or high, regardless.

It is necessary to talk about the extent to which this level of accumulation is provided with scientific and technical innovations and how much, in turn, this accumulation contributes to the future development of the scientific and technological revolution, the introduction of its results into production and an increase in the quality and volume of consumption.

Thus, it follows from the foregoing that the currently observed process of absolute reduction of the accumulation fund is of an objective nature. It is necessary to pass through the stage of absolute reduction of production accumulation.

One cannot see in the low rate and absolutely declining production accumulation only a manifestation of deindustrialization and deinvestment, the fallacy of economic reforms, as is often interpreted. There should always be a reasonable approach, based precisely on a sober assessment of the current situation.

Another thing is that the period of structural changes in the investment complex and investment programs should not be artificially prolonged, because this has the most detrimental effect on the level of personal consumption and the willingness of the population to implement economic reforms. [14]

The formation of the considered proportion between consumption and accumulation is revealed in more detail when analyzing the distribution of investments between specific sectors of the economy, for example, between those economic sectors whose economic activity is associated with the full satisfaction of the personal needs of people, and those that work for the reproduction of investment resources (for production).

In this regard, it is of particular importance to consider such a structure of investments that characterizes their consumption in the main production, social and production infrastructures. Starting this analysis, first of all, it is necessary to take into account the experience of developed countries accumulated in this regard. It shows that the focus on the constant expansion of the production of fuel, raw materials, materials mainly leads to an economic situation that has a paradoxical formula: the greater the volume of material resources produced in the form of raw materials, fuel, metals, the greater their shortage.

In the Soviet period, a similar approach to the development of the economy was typical, and even now it is largely preserved.

Constant growth actually leads to an unjustified increase in the so-called incremental costs associated with growth (from energy to the creation of certain infrastructure), increasing the scarcity of other resources. Most industries, especially mining, electric power, metallurgy, are the most capital-intensive links in the industrial cycle; to a large extent they work for themselves, involving with each additional ton of fuel and mineral raw materials an increasing number of equipment and machines, labor, energy and materials. An impressive share of the increase in the production of initial semi-products and materials is "eaten up" by their growing waste in other areas of the national economy that are consumers of these products. Under these conditions, production investments that reduce the consumption of materials, for an increasing number of positions, become economically much more profitable than future investments in industries that are extensively increasing production volumes.

Based on calculations, the costs of measures to save resources in production are currently 3-5 times less than the costs of increasing resource extraction. Meanwhile, the effectiveness of such resources is steadily increasing. On the basis of trends towards an absolute reduction in the size of extraction of almost all types of resources and an increase in the cost of extraction of many types of raw materials, the economic range of effective measures to save material resources is also expanding. The structure of the economy that has developed today, as you know, is characterized by an extremely large share of non-consumer sectors of the economy, which are characterized by high resource intensity, which is the main reason for the excess demand for investment goods, raw materials and energy.

Structural policy, which led to such results, not only negatively affects the development of the socio-cultural sphere, but also hinders the development of productive forces in general. The long-term growth of production to meet predominantly non-consumer needs, on the one hand, deprived society of the necessary material incentives for further socio-economic development, and on the other hand, worsened the material basis for investing in the economy.

A paradoxical situation has arisen: the more effort and money is spent on the production of means of production, the more the national economy experiences a shortage of them. [15]

The type of economic growth, in which for a long time from the branches that make up the II division of social production, accumulations in the branches of heavy industry overflowed, led to a progressive lag in the services, food and light industries.

The heavy industry was unable to provide industries that manufacture consumer goods with technological equipment and modern technology, since the vast majority of its goods were of a military nature, and this, in turn, dooms the state to large scale imports from abroad. It follows from this that the goal of structural policy in the short term should be the reorientation of appropriate resources to the development of industries that satisfy the consumer needs of people.

For Russia in this regard, the US can be a reference point, where industry accounts for 60% of total production.

It should be noted that for Russia this figure is close, because the country is rich in natural resources that ensure the development of agriculture, as well as most branches of the light and food industries. In the structure of social production, the most common aspects include: sectoral and functional.

Functional consists of objects and tools of labor, the worker himself, who is the main productive force, as well as such links as production or main production, social and production infrastructure.

The main production is the material and production sectors that are directly engaged in the manufacture of investment goods and commodities.

The increase in national wealth to a greater extent depends on these industries and their technical level.

These include:

1) raw material complex;

2) fuel and energy complex;

3) machine-building complex;

4) metallurgical complex;

5) agro-industrial complex;

6) chemical complex;

7) production of consumer goods;

8) construction and investment complex.

The sphere of industrial production in Russia occupies 54,5%, and, for example, in the UK - 29,8%, the USA - 26,2%, France - 29,6%, Japan - 33,8%. Accordingly, the service sector accounts for 26,2%; 67,7%; 71,1%; 64,2%; 58,6%; agriculture, respectively, - 19,3%; 2,5%; 2,7%; 6,2%; 7,6%.

At the level of individual economic units, sectors and industries, the production of gross domestic product is measured by the indicator of gross value added.

1989-1992 about 4/5 of gross value added comes from the sphere of material production; During this period, among the industries of the non-material sphere, the share of financial intermediation services increased most significantly (from 0,6% to 4,4%), such as insurance and lending.

It can be seen that the vast majority of the national product is produced precisely in the sphere of main production, where, unlike in developed countries, the structure of the national product is different.

The next link in the national economy is the production infrastructure, which includes a system of industry design and technology institutes, production management at the level of the industry or its large sub-sectors, transport, communications, trade, warehousing, business services in the form of franchising, consulting, engineering, maintenance, switch, leasing, hiring, rating, offset, offshore, etc.

Subdivisions of this sphere, providing services to the main production, help to increase its efficiency and improve working conditions, in fact, increasing national wealth.

In developed countries, the manufacturing services sector is a large and highly efficient sector of the economy. In the USA, for example, more than 1/5 of the gross national product is created in transport, communications and trade. [16] In Russia, this figure was 1991% in 6, and 1993% in 18.

Domestic statistics in the sphere of production infrastructure also includes the types of services that form an independent separate sector of the economy in developed countries.

To the financial infrastructure, more and more takes the form of a complete independent education, which is regulated by the specific features of the activity. Therefore, it becomes a separate functional sector of the national economy.

The financial infrastructure includes the financial and credit system, the system of modern office work, the banking network, etc.

In general, the main production and production infrastructure form the sphere of material production. In connection with the development of society, the need for intangible benefits that are created in the non-productive sphere is increasing, which determines the viability of the social infrastructure.

Social infrastructure is non-material production in which non-material types of wealth are created, which play a crucial role in the development of members of society, the growth of their professional knowledge, abilities and skills, the enhancement of cultural and educational levels, and the protection of health.

Social infrastructure includes the following sectors:

1) health protection and physical culture;

2) general secondary, secondary specialized, vocational and higher education, a system of advanced training for employees, etc.;

3) housing and communal services;

4) passenger transport and communications;

5) consumer services for the population;

6) culture and art;

7) tourism and sports.

Experience shows that social infrastructure in developed countries is gradually turning into one of the main areas of human activity. This is convincingly evidenced by data on the US economy for 1990.

Table 3

Share of sectors of the US economy in 1990

The table is compiled according to the data: world economic development trends.

The volume and quality of social services very clearly characterize the standard of living of the population and the economic progress of the country. For a long time, the underestimation of this sphere caused a significant lag in precisely those industries that now determine the level of civilization and development of society. Among other things, this is manifested in the low level of development of such industries as consumer services, health care, the material and technical base of science, secondary and higher education, etc.

Of course, the economic aspects for solving this problem are laid down in material production. But we must also keep in mind the fact that in modern conditions the economic progress of the country is significantly hampered due to the absence of pronounced national motives in the spiritual sphere. Therefore, when creating the economic program of the state, it is necessary to include the sectors of social infrastructure in the list of priority areas.

The material and technical base in a developed economy takes on a stable character at a certain stage. Basically, the growth occurs due to its qualitative improvement, which contributes to a slight increase in production services. In general, the volume of the service sector here is carried out at the expense of social infrastructure.

It is this change in the very structure of the service sector that must be considered a natural phenomenon. The study of the structure of the national economy in terms of identifying its large blocks (main production, social and industrial infrastructure) allows you to more accurately determine the priority areas for investments in investments. The need to improve the economic structure inevitably determines the improvement of the investment structure as the main effective resource for the implementation of major economic transformations. The analysis of the sectoral investment structure is an addition to the above study of their impact on structural shifts in the economy. But if earlier attention was concentrated on the macroeconomic structure, then in this case the main emphasis is on studying microeconomic proportions at the sectoral level.

The sectoral distribution of investments is a decisive influence on the formation of all economic proportions and rates of economic growth as a whole. The sectoral investment structure is the ratio of various financial resources directed to the development of individual sectors of the national economy. By themselves, sectoral proportions do not add up. They depend on the funds that are directed to the development of any industries. Therefore, the improvement of the sectoral structure of investments is a special means of improving the entire structure of the national economy. A high share in the modern structure of the economy is occupied by raw materials industries, as well as the manufacture of intermediate products. At present, the problem is to produce as many finished consumer goods and means of labor from the intermediate product as possible.

Accelerating the development of industries that produce consumer goods means increasing the efficiency of investments. If the investment process is carried out on a new technical basis, then real opportunities are created to maintain stable rates of reproduction at relatively lower material and production costs. The effectiveness of new technology lies precisely in the extent to which it contributes to the production of finished products, including consumer goods. [17]

The outstripping growth rates of finished products compared with the growth of the necessary means of production mean that in the construction of new enterprises and technical reconstruction it is necessary to focus on such equipment that will allow maintaining the growth rates of national income and gross product at a higher level than the growth in the number of means of production. Based on an analysis of the structural relationships between national income and gross national product, we can say that in recent years, the most priority in the sectoral structure is the production of an intermediate product.

At present, prices are growing to a greater extent precisely for the products of the fuel and energy, chemical, and metallurgical complexes, where more than half of all industrial profits are accentuated. This is a counter to structural economic shifts and reproduces a very dangerous trend in production. As a rule, the structure of the economy is the most stable element of economic dynamics. In order to change it, it will take a long time and huge investments, as well as a purposeful adaptation of the economy to the rational personal and social needs of the population.

Under certain conditions, an extremely important task is the transfer of material and financial resources from the military-industrial complex and heavy industry to industries that develop consumer goods and services that ensure the priority of high-tech industries, as well as the construction complex, the formation of a significant sector for the production of high-tech goods for import-substituting industries and for export. This should be subject to pricing and financial and credit policy, the system of state regulation of the release of the final product.

Logically, in a growing economy, the sectoral structure of investment should change in such a way that the share of those industries with higher capital productivity increases. [18]

Literature

1. Investment return - M.; KNORUS, 2006. - 432 p.

2. Idrisov A. B., Kartyshev S. V., Postnikov A. 3. Strategic planning and analysis of investment efficiency. M.: Information and publishing house "Filin", 1998; 1998; Guidelines for evaluating the effectiveness of investment projects.

3. Investment activity. M.: KNORUS, 2006. 432 p.

4. Investment activity. M.: KNORUS, 2006. 432 p.

5. Political economy. Economic Encyclopedia. vol. 1. M.: Nauka, 1968. S. 548

6. Investments: Textbook. M.: KNORUS, 2006.

7. Investment activity. M.: KNORUS, 2006. 432 p.

8. Investment activity. M.: KNORUS, 2006. - 432 p.

9. Gracheva M. V. Analysis of project risks. M.: CJSC "Finstatinform", 1999.

10. Economy of foreign countries. M.: Higher school, 1990. S. 95.

11. Economy of foreign countries, M.: Higher school, 1990, p. 95.

12. Economy of foreign countries. M.: Higher school, 1990. S. 95.

13. Political economy. Economic Encyclopedia. vol. 1. M.: Nauka, 1968, p. 548

14. Political economy. Economic Encyclopedia. vol. 1. M.: Nauka, 1968, p. 548

15. Political economy. Economic Encyclopedia. v.1. M.: Nauka, 1968. S. 548

16. According to the Russian Ministry of Statistics.

17. The national economy of Russia. Statistical Yearbook. K. Tekhnika, 1994. S. 14.

18. Political economy. Economic Encyclopedia. vol. 1. M.: Nauka, 1968. S. 548

Author: Maltseva Yu.N.

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