Research of possibilities of crediting of the investment project of public-private partnership by PSJC "State Savings Bank of Ukraine"
Students Name: Pokhyla Oleksandr Andriiovych
Qualification Level: master (ESP)
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2020-2021 н.р.
Language of Defence: ukrainian
Abstract: In the first section of the master’s thesis, the theoretical principles of the essence of public-private partnership, the need for its development and the theoretical principles of lending PPP investment projects were considered. It is established that in the implementation of PPP projects, attracting financial resources for the implementation of PPP projects is usually entrusted to a private partner. If the private partner does not have sufficient financial resources necessary for the implementation of the PPP project, it is possible to attract a financing organization (the creditor). State support for PPP projects in Ukraine does not provide for budget lending for PPP projects, but only: 1) provision of state guarantees and guarantees of local self-government bodies; 2) full or partial compensation from the state or local budgets of interest on loans raised for the implementation of projects; 3) payment to the private partner of the payments provided by the agreement concluded within the limits of the public-private partnership; 4) acquisition by a state partner of a certain amount of goods (works, services) produced, performed, provided by a private partner. In the analytical part, an analysis of the financial condition of JSC "State Savings Bank of Ukraine" and a coefficient analysis of the financial condition of the bank on the basis of liquidity, financial stability, profitability. It was found that the bank’s performance is satisfactory, except in 2018, when there were serious changes in the bank’s balance sheet, which affected the bank’s performance. Also in the analytical part, an analysis of the structure of loans provided by the bank was conducted. It is established that legal entities are the main creditors, although the amount of loans granted to legal entities decreases during the analyzed periods. But the bank is trying to improve the situation by increasing the volume of loans to individuals. The total amount of loans is still declining, which indicates that the bank needs to improve credit proposals, especially for legal entities. In the second section, which was research-forecasted, an assessment of the internal and external environment of the bank of JSC "State Savings Bank of Ukraine" was carried out. Also, the forecasting of net profit and equity of JSC "State Savings 9 Bank of Ukraine" by extrapolation of the linear trend, the parameters of which were calculated by the method of the smallest squares, was carried out. The forecast values of these indicators for 2020 and 2021 were obtained. The forecast showed that net profit will grow, while equity will decrease, which will affect the profitability ratio of the bank’s equity in a positive way. Modeling the behavior of the bank’s return on equity based on the actual and forecast values of factors influencing it, namely equity and net profit and using logarithmic method of factor analysis was carried out. Significant negative fluctuations in factor variables in 2018 led to a significant decrease in the profitability of the bank’s equity. But since 2019, the indicators have already shown positive growth dynamics, and although 2019 did not correspond to the result of 2017 already for the predicted 2020-2021, the values of the resulting indicator should improve. In the third section, according to the data of the real investment project of the PPP initiated by the Monastyryska District State Administration, the possibility of lending by the Bank to JSC "State Savings Bank of Ukraine" of this project was considered and the corresponding calculations of its profitability on the loan application of the private partner of the project were carried out. Based on the calculations of the project profitability index (179.07%), the discounted payback period of the project (DPP – 2.8 years), the internal rate of return of the project (IRR = 0.29%) it was found that the investment project is profitable and can be loaned by the bank. The calculation of payments and schedules of loan repayment when lending the PPP investment project for a private partner, calculated by the classical and annuity method, is carried out. The effectiveness of design decisions on crediting JSC "State Savings Bank of Ukraine" of the PPP investment project is calculated. 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