Project financing and its role in the modern economy of Ukraine

Abstract

Introduction. Due to the peculiarities of the development of a modern institutional environment, project funding, which in this paper is the subject of the study, in the form in which it is used by Western national and multinational corporations, cannot be applied in Ukraine. A certain transformation of the approaches which are developed by foreign practice is necessary. It is also required their adaptation to the modern conditions of the country, the distinguishing features of which are the instability, imperfection and incompleteness of information. Studying and theoretical understanding of the approaches, which are worked out by developed countries, to the organization of project financing in combination with the scientific synthesis of their own experience in the field of investment financing can become the basis for the formation of the domestic concept of project financing as one of the elements of an effective mechanism of financial support of investment activity. It should take into account the peculiarities of the national economic system and traditions of entrepreneurship development.

Purpose. The article aims to carry out the scientific, theoretical and practical justification of project financing, to ground its role in modern economic conditions, to improve the project financing as a tool for regulation of the investment market, which is aimed at increasing the efficiency of its activities.

Method (methodology). We have used the method of estimation and analysis of risks and financing efficiency, method of estimation of financial and economic activity indicators, statistical methods to solve the tasks of the research.

Results. It has been carried out the comprehensive solution of theoretical and practical issues of forming the national concept of project financing that meets the needs of economic development and its emergence on the trajectory of sustainable economic growth. It can improve the investment climate in the country, improve the efficiency of transformation of savings into real investments, and attract foreign investors to the country.