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Using State Guarantees in Risk Management of Investment Projects

Author

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  • Dmitry N. Ershov

    (Financial Research Institute, Moscow 127006, Russia)

Abstract

The provision of state guarantees in the planning and implementation of investments is a common instrument of state support and attraction of additional financial sources to large infrastructure projects. On the other hand, risks resulting from government guarantees may adversely affect the sustainability of the budget system. In order to neutralize such risks, a system of investment risk management arising from government support of investments is applied. In recent years to minimize the risks with regard to the budget, many countries undertake legislative and procedural changes related to the provision of state guarantees. The article is devoted to the modern practice of state guarantees provision, while planning and implementing large investment infrastructure projects on the example of Germany and France. Among the considered issues are the legal framework, procedures and conditions for the provision of state guarantees. Certain elements of state guarantees system of Germany and France could be examples for possible introduction in Russia.

Suggested Citation

  • Dmitry N. Ershov, 2019. "Using State Guarantees in Risk Management of Investment Projects," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 34-43, February.
    • Handle: RePEc:fru:finjrn:190103:p:34-43
    DOI: 10.31107/2075-1990-2019-1-34-43
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    References listed on IDEAS

    as
    1. Andrei A. Bokarev & Olga V. Bogacheva & Oleg V. Smorodinov, 2017. "Methodology Development of Efficiency Evaluation of Public Infrastructure Investment Management," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 4, pages 56-70, August.
    2. Oecd, 2015. "Budget Review: Germany," OECD Journal on Budgeting, OECD Publishing, vol. 14(2), pages 9-79.
    3. Antonina S. Kovalevskaya & Svetlana I. Nikulina, 2018. "Government Guarantees as an Instrument for Investment Risk Allocation," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 23-33, October.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Nataliya G. Filatova, 2019. "Improving the Credit Rating of Loan Recipients Implementing Long-Term Investment Projects," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 4, pages 102-115, August.

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    More about this item

    Keywords

    state guarantees; investment projects; infrastructure development; risk management; public investment; contingent liabilities; budget sustainability; public-private partnership;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts

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