FINANCIAL AND CREDIT INSTRUMENTS AS A KEY FACTOR IN THE DEVELOPMENT OF CONSTRUCTION INVESTMENT ACTIVITY
Abstract
The article analyses the content and structure of financial and credit instruments in construction, as well as identifies ways to improve the efficiency of investment activity in this sector. The main sources of construction financing are considered: state and local budgets, bank lending, own funds of enterprises, investments of individuals, attraction of non-bank organisations and foreign investors. Changes in the structure of capital investment in the period 2019-2024 are analysed, in particular, a decrease in investment in housing construction and an increase in financing of vehicles and software are identified. The role of public funding in periods of economic instability and military operations, when private investors show restraint due to increased risks, is determined. The structure of financing sources in 2024 is estimated, where the largest share belongs to the enterprises' own funds (73%), and the share of bank lending has decreased to 4% due to high risk. The problems of attracting foreign investment and the decline in the share of non-resident investors are identified. The need to expand government support for strategic construction projects through budget co-financing, public-private partnerships, tax incentives, and the accumulation of funds through mixed financing is particularly emphasised. The author proposes a set of measures to improve the efficiency of investment in construction, including the expansion of public funding, intensification of development activities through the use of complex financial schemes and attraction of venture capital. Of particular importance are modern technological approaches to attracting investment, combining digital platforms with classical credit mechanisms. The study highlights the importance of ensuring transparency and risk mitigation mechanisms to enhance investor confidence and stimulate capital inflows into the sector. The results underline the necessity of a comprehensive investment strategy that incorporates government support, private sector engagement, and international cooperation to enhance financial stability in the construction sector.
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