Abroskin Peter (Ph.D in Economics, Associate professor, the Department of Organization and Human Resources Management, Moscow State University of Means of Transport)
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The article considers a new mechanism of foundation and functioning of a new institute of municipal economy development in Russia – the stock funds of direct investment. The funds are intended for investment in the projects of the medium industrial business. Credit resources are practically inaccessible for the medium industrial business due to the high cost of money resulting from demonetization of the Russian economy: the carrying charge is extremely high, collateral free borrowing is almost inaccessible and insufficient, while the liquidity of collateral is limited. Municipal funds, replenished by Debt Finantial Instruments are prevalent in developed economies but don’t suit Russia. It is necessary to provide high profitability of businesses and high ratio of their assets turnover when using the funds, which is unachievable in industrial business.
The authors suggest establishing stock funds of direct investment using the mechanisms of public – private partnership in municipals. Currently municipal budgets lack available funds and are limited by legislation in using them in business (economic) activities. Therefore initial formal formation of the fund capital is based on the introduction of municipal treasury assets in economic turnover. It is supposed to obtain real initial funds by means of excess profits, which municipal utilities companies will get as a result of modernization and usage of Russian energy and resources’ saving technologies. The funds will be invested in efficient projects of medium industrial businesses. In the future the fund can operate on the stock exchange and be replenished by means of other sources: stock trading and profits of the companies the funds invested in.
The Institute of development suggested in the article will allow to improve municipal economy and avoid stressful debt mechanisms.
Keywords:demonetization of the economy, high carrying charge , institute of development, investments, the stock fund of direct investment, public – private partnership, municipal economy, financial instruments, industrial business.
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Citation link:
Abroskin P. Stock fund of direct investment as an Inistitute of Municipal Economy Development // Современная наука: актуальные проблемы теории и практики. Серия: ЭКОНОМИКА и ПРАВО. -2014. -№07-08. -С. 3-10 |
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