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International Journal of Trend in Scientific Research and Development (IJTSRD)
Special Issue on Innovative Development of Modern Research
Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

Mechanisms for Financing Investment

Projects through Commercial Bank Loans

Norov Akmal Ruzimamatovich , Mirzayev Azamat Abdujalilovich ,
1
2
Haydarov O’ral Axmadovich , Qahorov Bobur Baxtiyorovich ,
3
4
5 Nurmuxammedov Abdijabbar Yunusovich
1 PhD of Banking and Investment Department at Tashkent State University of Economics, Tashkent, Uzbekistan
2 Student of the Banking and Finance Academy of the Republic of Uzbekistan, Uzbekistan
3 PhD of Banking and Investment Department at Tashkent State University of Economics, Tashkent, Uzbekistan
4 Student of the Banking and Finance Academy of the Republic of Uzbekistan, Uzbekistan
5 Senior Lecturer, Department of Banking and Investment,
Tashkent State University of Economics, Tashkent, Uzbekistan

ABSTRACT methodological study of ways to solve these problems and
The article analyzes the role of commercial banks in management methods is an important task.
financing investment projects. The experience of developed
Literature review
foreign countries in financing investment projects is
studied. The activities of commercial banks for lending to Many foreign and local economists have been working on the
effectiveness of investment projects and their evaluation.
investment projects were studied and suggestions were
From foreign economists who have conducted research on
made for their improvement.
this issue:

KEYWORDS: investment project, lending practice, GDP,
Professor F. Mike and Professor V. Rong (2006) suggested
employment, loan portfolio that external financial constraints should be imposed on the

effective use of investment projects and that domestic
INTRODUCTION
investment projects should be encouraged on this basis. At
At present it is impossible to imagine the socio-economic life the same time scientists conclude that as the cost of external
without the activity of commercial banks without their financing increases the value of cash will increase
financial support. This is due to the fact that commercial
significantly [2].
banks play a leading role in financing investment projects in
the country by providing loans to investment project Professor H. Wang, P. Liang, H. Li and R. Yang (2016) studied
participants and customers thereby contributing to the the relationship between investment projects focused on
overall macroeconomic stability in society. technological developments and their sources of funding, as
well as sources of funding for research investment risk [3].
In the context of modernization of the country's economy the
importance of financing investment projects by commercial In addition, the well-known Russian economic Professor T.
banks is growing from year to year. With the help of loans Mazurina (2013) justified the existence of the following
from commercial banks important sectors of the economy conditions for the development of lending for investment
are being financed new investment projects are being built projects at the expense of loans from commercial banks:
additional jobs are being created for the population and new existence of effective state investment and industrial
products are being developed. policy (with indication of clear directions of placement
of financial resources);
Regarding the role of commercial banks in financing development of investment infrastructure, which is the
investment projects Sh. Mirziyoyev noted that "The bank main direction of risk reduction associated with the
should develop measures to attract external sources of implementation of investment projects;
financing for investment activities along with their own
increase the investment attractiveness of enterprises
funds". The topicality of this topic is reflected in the fact that [4].
the wide implementation of investment projects in the
country and its comprehensive support taking into account According to Professor I. Yudina (2013) a necessary
the issues of financing investment projects at all stages of condition for the development of investment lending
economic development. practices of commercial banks in developing countries is the
diversification of risks [5].
It is gratifying that over the past 10 years the volume of
lending by commercial banks has increased 35 times in the Professor N. Karimov one of the Uzbek scientists studied the
development of the economy of Uzbekistan. However, as we problem of increasing the investment lending capacity of
know the process of development and progress is fiercely commercial banks as the main problem in improving the
competitive and the problems are improving in acocida. mechanism of financing investment projects through
When banks finance investment projects they are assessed commercial banks. This scientist cited factors such as
as low liquidity. This creates problems in allocating bank improving the efficiency of risk management of investment
loans to these enterprises. An in-depth scientific and activities in commercial banks, improving the feasibility of

ID: IJTSRD41106 | Special Issue on Innovative Development of Modern Research Page 126