Mechanism of financial resources mobilization in conditions of crisis

Economic Annals-ХХI: Volume 144, Issue 9-10(1), Pages: 85-88

Citation information:
Boronos, V., Aleksandrov, V., & Plikus, I. (2014). Economic Annals-XXI, 9-10(1), 85-88. https://ea21journal.world/index.php/ea-v144-21/

Viktorya Boronos
D.Sc. (Economics),
Professor,
Sumy State University
2 Rimsky-Korsakov Str., Sumy, 40007, Ukraine
boronos_v@mail.ru

Vadym Aleksandrov
PhD (Economics),
Associate Professor,
Sumy State University
2 Rimsky-Korsakov Str., Sumy, 40007, Ukraine
aleksandrov_v@ukr.net

Iryna Plikus
PhD (Economics),
Associate Professor,
Sumy State University
2 Rimsky-Korsakov Str., Sumy, 40007, Ukraine
plikusirina@gmail.com

Mechanism of financial resources mobilization in conditions of crisis

Abstract. Introduction. In crisis period, especially important issues are related to the usage of debt market instruments in order to stabilize the problem of insolvent companies. The solution to this problem is possible by raising funds through the debt market. However, until now, there is neither organization that is able to work on this segment of the stock market in Ukraine, nor an effective mechanism of state guarantees for the companies with debt restructuring which will help to attract investment into the country and restore the companies’ solvency. Purpose. The state needs an effective mechanism for debt restructuring, which purports to restore the solvency of enterprises. Results. The authors propose to create the Agency for Debt Restructuring and Indemnity. The Agency should work on the principles of market orientation and feasibility of intervention in the debt market. We propose three major fund-raising mechanisms for insolvent companies with the participation of the Agency and the debt market instruments usage. Conclusion. We consider that professional debt management with participation of the Agency for Debt Restructuring and Indemnity, which we propose to form, may promote the financial market stabilization, Ukraine’s regions strengthening and general crisis overcoming.

Keywords: Debt Obligations; Bill of Credit; Warranties; Crisis of Payments; Agency; Debt Restructuring

JEL Classification: G20; G29; G33

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Received 10.08.2014