Government Guarantees as an Instrument for Investment Risk Allocation

Antonina S. Kovalevskaya () and Svetlana Nikulina
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Antonina S. Kovalevskaya: Financial Research Institute, Moscow 127006, Russia
Authors registered in the RePEc Author Service: Антонина Ковалевская ()

Finansovyj žhurnal — Financial Journal, 2018, issue 5, 23-33

Abstract: Government guarantees for investment projects are important as a risk allocation instrument encouraging investors to finance socially significant projects. In spite of many advantages, it involves considerable risks for a guarantor and financial stability of a country. Therefore, issues of managing risks connected with government guarantees provision are relevant for many countries especially for the Russian Federation, where existing mechanism of government support by means of guarantees needs changes. The article describes the experience of Brazil and India in government guarantees management in relation to the investment projects. Their practices are especially important for Russia as both countries are its BRICS partners and considered as the most attractive destinations for overseas investment allocation. It is useful for Russia as an investment guarantor in terms of its security improvement and risk management of investment projects during making decisions about guarantees provision. Analysis covers organizational and management specifics of government guarantees in the area of public-private partnership. The study is carried out on such elements of the management system as a creation of guarantee funds to protect investors from investment risks and evaluation of infrastructure projects effectiveness. Based on the analysis, the authors give recommendations on how to improve the government guarantees instruments in Russia.

Keywords: government guarantees; infrastructure investments; infrastructure projects risks; guarantee funds; guarantee support mechanism; contingent liabilities; budget stability (search for similar items in EconPapers)
JEL-codes: E62 H54 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:fru:finjrn:180502:p:23-33

DOI: 10.31107/2075-1990-2018-5-23-33

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