International scientific journal
“Interpretation and researches”
Volume 2 issue 22 (44) | ISSN: 2181-4163 | Impact Factor: 8.2
201
PROSPECTS FOR IMPROVING FINANCIAL SUPPORT FOR
INVESTMENT ACTIVITIES IN THE CONTEXT OF GLOBALIZATION
Tulkin Imomkulov
Tashkent State University of Economics, Department of
Finance and Financial Technologies
Abstract:
In this article, the sources of investment funds and specific features of
financial sources are discussed and given overall conclusions with current scientific
analyses
.
Key words:
investment, innovation, gross domestic product, investor,
investment activity, investment financing.
The high probability of unfavorable development of investment enterprises in
our country through financial support of investment activities in the context of
globalization requires expanding sources of financial resources. It is necessary to
evaluate investment projects and consider investment flows in general, taking into
account modern trends caused by various negative factors. Regarding the first, it
should be noted that although assessing the quality of investment projects is
problematic, it is important to bring the assessment results to a reasonable level.
During 2020, 18 loans worth $ 3.1 billion were provided to the Republic of
Uzbekistan by international financial institutions, including the World Bank, the
Asian Development Bank, the French Development Agency, the Saudi Development
Fund, the Chinese Exim Bank, the Korean Exim Bank, and financial organizations of
Japan, and the Republic of Uzbekistan entered the top five countries in Europe and
Central Asia in terms of the volume of its project portfolio in the World Bank system.
This indicates that international financial institutions have high confidence in the
reforms being implemented intensively in our country.
Attracting investment is a priority in the development of any country. In this
regard, it is appropriate to recall the opinion expressed by our Honorable President in
his Address of December 29, 2020.
In this regard, it is no exaggeration to say that we have fully achieved our
priority tasks set for this year, no matter how difficult it may be, based on the ideas
put forward by our President, namely, “we must learn to live and work in the
conditions of a pandemic.” In this regard, it is important to attract investments in our
country to sustainably develop sectors of our economy.
International scientific journal
“Interpretation and researches”
Volume 2 issue 22 (44) | ISSN: 2181-4163 | Impact Factor: 8.2
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Table 1
Issuer Ministry of
Finance
of
the
Republic
of
Uzbekistan on behalf
of the Republic of
Uzbekistan
Issuer Ministry of Finance of the Republic of
Uzbekistan on behalf of the Republic of Uzbekistan
Rating level BB-
Rating level BB-
Global coordinator JP
Morgan Chase
Global coordinator JP Morgan Chase
Bookrunner
agents
Citigroup,
Gazprombank,
JP
Morgan
Bookrunner agents Citigroup, Gazprombank, JP Morgan
Maturity
February
20, 2024
Maturity February 20, 2024
Maturity
February
20, 2024
(5-year) February 20,
2029
(5-year) February 20, 2029
(5-year)
February
20, 2029
(10-year)
(10-year)
(10-year)
Value
of
issued
securities 500 million
US
dollars
500
million US dollars
Value of issued securities 500 million US
dollars 500 million US dollars
Value of
issued
securities
500
million
US dollars
500
million
US dollars
Coupon rate 4.750%
5.375%
Coupon rate 4.750% 5.375%
Coupon
rate
4.750%
5.375%
Benchmark
spread
+222 bps +266.4 bps
Benchmark spread +222 bps +266.4 bps
Benchmar
k
spread
+222 bps
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+266.4
bps
The results of the above analysis show that it is necessary to expand the
financing of investment activities in our republic by introducing public sales of shares
of large enterprises to local and foreign investors in open markets in a syndicated
manner with international “bookrunner” companies.
On December 28, 2020, the Resolution of the President of the Republic of
Uzbekistan No. PP-4937 “On measures to implement the Investment Program of the
Republic of Uzbekistan for 2021-2023” was adopted.
Based on this resolution, the parameters of the development of capital
investments carried out by the Ministry of Finance in the field of financial support of
investment activities in our country can be seen in the table below.
Analyzing the table data, the share of budget funds in the structure of centralized
investment expenditures is planned to be 17,700 billion soums in 2021, while this
figure will increase to 19,650 billion soums by 2022. it is planned that it will amount
to soum. It can be seen from the data of this table that in 2023, compared to 2022, the
budget expenses will increase by 1.12 times.
Conclusions
Thus, the internal and external sources of financial support for investment
activities at the macro-economic and micro-economic levels are fundamentally
different from each other. The need to clarify the classification (classification) of the
sources of financing investment activity depends on the objective changes in the
transition to the market model of investment, the distribution of functions of the state
and enterprises in the investment process, the investment market, as well as the
development of the system of institutions whose main task is to collect investments
and then deploy them in business activities. The analysis of sources of financial
support for investments in countries with a developed market economy shows that the
share of internal resources in the volume of total investment costs differs significantly
in different countries depending on many objective and subjective factors. In the
economic literature, the ratio between internal and external sources of investment in
Western countries is estimated differently.
References:
1. Huang, Z., Wang, H., & Wu, Z. (2020). A kind of optimal investment
problem under inflation and uncertain time horizon. Applied Mathematics and
Computation, 375, 125084.
International scientific journal
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Volume 2 issue 22 (44) | ISSN: 2181-4163 | Impact Factor: 8.2
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2. Tiwari, A. K., Abakah, E. J. A., Gabauer, D., & Dwumfour, R. A. (2022).
Dynamic spillover effects among green bond, renewable energy stocks and carbon
markets during COVID-19 pandemic: Implications for hedging and investments
strategies. Global Finance Journal, 51, 100692.
3. Tran, T. K., Lin, C. Y., Tu, Y. T., Duong, N. T., Thi, T. D. P., & Shoh-
Jakhon, K. (2023). Nexus between natural resource depletion and rent and COP26
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4. Gong, X., Wong, W. K., Peng, Y., Khamdamov, S. J., Albasher, G., Hoa, V.
T., & Nhan, N. T. T. (2023). Exploring an interdisciplinary approach to sustainable
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