accumulation of capital is important for the economic growth of any country.Internal sources - a profit from different companies, the state budget, the accumulation of the population and so on.Complementing them are private and public funds that are attracted from other countries, a large share of the take international loans, is the movement of loan capital, taking place in the sphere of foreign economic relations.This provision of various resources (commodity and foreign exchange) under the conditions of repayment, urgency.
role of international loans
essence considered an economic category is shown through a number of functions:
- maintenance of commodity circulation.
- redistribution.
- concentration of capital.
- cost savings.
In carrying out the above functions of international loans provide continuity of the process of expanded production, as well as contribute to strengthening the non-uniformity that exists in the economy.Some industries are encouraged, while others are constrained, it all depends on profitability.The boundaries of these loans are determined by funding sources, a need exists in them, return them to the level of a certain period.Failure to do so leads to a problem called external debt and in need of resolving.
Highlights
Let's examine each function to evaluate international loans, and their importance to the economy.
- When implementing service turnover is accelerated and monetary circulation, but are forced out of cash.Actively introduce tools such as credit cards, bills, checks.Non-cash transactions come in first place, it simplifies and economic relations in the international and domestic markets.A special role is played by commercial loans.
- redistributive function is that the finances of certain areas is sent to the other to make big profits.
- important condition for the stability in the economy - the concentration of capital.International loans are expanding the scale of production, thereby providing additional income.
- saving costs arising from treatment, achieved with the help of financial resources, which are temporarily released at the commercial and industrial capital of the circuit.The gap of time between the receipt and expenditure of funds determines the excess or deficiency of Finance.
classification of loans made at the level of different countries
For a better understanding consider the types of international credit:
- company;
- bank;
- Special compensation transactions;
- mixed.
Corporate loan - a loan given by the exporter of a particular country to the importer of another state by delaying payment or as a commercial foreign loans.Implement them often through a promissory note or open account.
have a bank loan has some advantages when compared to the brand.There is a choice of suppliers, better timing, moreover, are in good volumes good value.
Loans for compensation transactions - long-term foreign trade loans (10-15 years).Importer receives funds for the purchase of equipment and machinery, repaying debt is foreign currency payments, and delivering products.
Variety of mixed loans - foreign currency credit.It can be used more broadly.Its forms are: factoring, leasing, forfeiting.
forms of international credit classified according to various criteria
- By source: foreign, mixed, domestic loans, foreign trade financing.They are linked.
- By appointment: financial, commercial and intermediate loans.The first focused on the construction, purchase of securities, investment projects, as well as on the repayment of foreign debts.The second related to the foreign trade operations.Others loans are designed to work with mixed forms of export of capital, services and goods.For example, contract work.
- In currency loan they may be in the currency of the debtor or creditor, and even the equivalent of a third country.
- dates: shortrange may still be up to a year-on-year to five, more than 5 years.By
- guarantee: blankovskie or secured.
- By providing: financial, bond loans, acceptance, certificates of deposit and others.
- Depending on the type of lender: intergovernmental, governmental, private, mixed.
It is important to use international credit in the economy for the mutually beneficial cooperation between the states.
