Targeting of project financing and monitoring in credit territories

It is well known that in recent years, many countries in the world have been exposed to credit and exchange risks through various external and internal factors, resulting in deterioration in the financial condition of credit institutions, including the growth of volumes of loans classified as problematic in their loan portfolio. , ensured stable functioning of the banking system [6].

This includes effective monetary policy and effective banking supervision, prudent policies to attract foreign capital, ensuring national currency stability, relying on internal sources in the formation of banks' resource base, strict adherence to principles and guidelines for credit operations, and modern methods of risk management the

Measures taken in the banking system in the context of globalization of the economy are based on the Resolution of the President of the Republic of Uzbekistan dated May 6, 2015 № PP-2344 "On measures to further increase the financial stability of commercial banks and their resource base development" [2]

On the outcomes of the country's socioeconomic development in 2015 and the most important priorities of the economic program for 2016, the Cabinet of Ministers Christ the implementation of the priorities identified in the report of our country.

In recent years, commercial banks have been expanding their investment activities for investment activity. The investment loans allocated by commercial banks are primarily aimed at financing investment projects included in the "State Programs for 2015-2019, primarily aimed at deepening structural transformations, modernization and diversification of the economy's industrial sectors, forming modern infrastructure."

The main purpose of the development of the investment project monitoring system is the timely resolution of the discrepancies in the investment activity, the analysis of the causes and the adjustment of its particular dimensions in order to improve the efficiency and effectiveness of the investment activity the development of proposals on supply.

The return of investment is a key feature of the lending relationship, which has a clear mechanism in practice, which is differentiated by other types of economic relations. This mechanism, on the one hand, is based on economic movements based on the return on investment, and on the other hand, represents the legal relationship between the investor and the borrower, which arise through the contract.

Monitoring of investment projects is carried out not only for the process of its implementation, but also during the period of their financing. The importance of the monitoring prior to the project financing is that it is better and more important than the project financing period. As a result, investors will have the opportunity to advance their project goals in advance.

Monitoring of the project prior to financing will include: [4]:

• -    search of investment concepts;

• -    initial preparation of the project;

• -    Evaluation of the final formulation of the project and its feasibility study;

• -    review the draft and make decisions on it.

Throughout these stages, the project will ensure investment. In order to create such a situation it is necessary to thoroughly prepare all aspects of investment idea and develop a corresponding business plan (investment project). This project is in the best interests of potential investors, which means that the research efforts have made it possible to achieve the desired result.

The usefulness of the results and the analysis ensures that the decision to choose the best option (scheme) of the project and its funding (step by step).

The advantage of this approach is evident in demonstrating and increasing the effectiveness of the cost of project preparation. It also allows for the identification and selection of the most promising and effective project that ensures timely identification and rejection of unsupported projects and the prevention of unnecessary spending of large amounts of money. This sort of project is always important.

The most important starting point for investing in searching and selecting business ideas that are worthwhile to invest is. The reason is that this can ultimately be the basis for mobilizing investment funds. To do this, initial work on the project should be carefully conducted.

The task of the initial stage of the project is to develop a suitable business plan for the investment project, that is to solve a common problem for any commercial activity. The objective of this business plan is to find the answer to the following two key questions:

• -    How interesting is the concept of an investment project, and is it logical to continue to work on it and to base the information on the feasibility and feasibility of the project?

• -    Are there any aspects of this investment project that are crucial to the research that is needed to focus on and the future success of the project?

The feasibility study and the feasibility study of the project will provide an alternative review of options and issues related to all aspects of investment at the stage of final design and feasibility study of the project.

Preparing all sorts of information to make the final decision is the key ingredient of the final formulation of the project and a thorough evaluation of its financial advantage. This step should only be made if the required financial resources are firmly established at a sufficiently high level of accuracy.

The final and next stage is to make a final review of the project and make a final decision on the feasibility of the project, which involves conducting evaluation work that is the basis for decision-making on the implementation of the project.

The higher the quality of the project, the smaller its evaluation. In designing a well-grounded summary, the focus is on a firm that is financing the project. If a firm is experienced and competent, it can provide a complete solution to the organizational and financial problems of the project. The most recent evaluation of the project is based on the technical, commercial, market, management, financial aspects of the analysis.

Bank institutions invest in financing investment projects, analyze the borrower's creditworthiness from the time the creditor gives credit, and monitor the project's target use, ie project financing [5].

Borrowing bank borrowings operate in a competitive market environment in which they have their own laws and regulations. Enterprises that do not choose the right development strategy, market-oriented, lose their position. A borrower with a long-term development perspective may be in a difficult financial situation in a few months due to objective and subjective factors. As a result, there is a risk that bank loan will not be refused. It is therefore crucial that the bank (creditor) investing in the project financing be sure to monitor the debt situation throughout the life of the project and identify "alarm" signals that arise from time to time.

Monitoring of project financing envisages a system of control over the use of funds allocated for financing, identifying changes in its status and taking appropriate measures. Its objective is to ensure that the principal debt and interest are paid in due time.

Monitoring involves periodic review of all project financing documents and their terms and conditions, their compliance with the banking and credit policy, adopted norms and procedures. The next step is to evaluate the debtor's financial standing based on the analysis of its balance sheet, profit and loss statement, and other documents describing the client's financial and economic performance.

Another important aspect of monitoring is the second source of credit repayment - checks for its repayment.

Currently, hundreds of projects are being funded annually in our country. While these projects are funded by state budget funds, international credit lines, off-budget funds, banks, foreign and private investors, these funds are required to be repaid and to benefit from them in a certain amount of time. In order to detect, investigate and analyze the return of these funds, creditors will also monitor projects by suppliers of goods, particularly leasing, insurance companies and guaranteeing organizations.

Currently, a common system of monitoring of all projects financed by the Republic of Uzbekistan is implemented. Each funder or crediting organization develops and operates on the basis of their activities and characteristics, based on their type of monitoring.

Monitoring primarily involves periodic review of all project financing documents and their terms and conditions, their compliance with bank lending policy, adopted norms and procedures. The next step is to assess the financial viability of the debtor and to analyze its balance sheet, profit and loss statement, and other documents describing the client's financial and economic performance. Another important aspect of monitoring is the second source of credit repayment -checks for its repayment.

Currently, hundreds of projects are being funded annually in our country. These projects are funded by state budget funds, international credit lines (European Bank for Reconstruction and Development, Asian Development Bank, International Finance Corporation and other European banks), financed by off-budget funds, local banks, foreign and private investors, these funds will need to be repaid and their profits need to be met. Monitoring of projects is carried out by creditors, as well as suppliers of goods, particularly leasing, insurance companies and guaranteeing organizations, to determine, analyze and analyze the return of these funds [5].

In order to improve control over the use of investment loans, we consider it appropriate to take the following measures:

• 1.    A comprehensive approach to the loan application, that is, accurate and comprehensive implementation of initial control over the use of investment loans, first of all, attention should be paid to the nature of the client, his financial position, position between business partners and experience in this field.

• 2.    Verify the completeness of the package of documents submitted to the bank during the period under review, and verify their accuracy. The credit officer should carefully review his financial situation and give an objective assessment.

• 3.    From the moment of allocation of the loan, it is necessary to constantly monitor the client's business plan, funds circulation, timely execution of settlements with suppliers, take measures to prevent overdue accounts receivable.

• 4.    It is desirable for a quarterly review of the financial statements of the guarantor and review its solvency, provided that the continuity of the maintenance and operation of the property provided as a credit, as well as the guarantee of the third party as a loan, are appropriate.

• 5.    In assessing the property of the enterprise, the bank's property valuation expert will provide more opportunities as the customer will use the paid-in valuation to increase the cost of the loan until maturity.