ANALYSIS OF THE PROSPECTS FOR USING PROJECT FINANCE IN HOUSING CONSTRUCTION

Abstract

The main objective of the study is to identify significant factors that may hinder the transition to project financing and the development of the residential real estate market. The subject of the research the housing market after the transition to project financing, sources of funds and possible schemes of interaction of construction companies with creditors are analyzed. The article concludes that factors negatively affecting project financing include an increase in debt servicing costs for developers, the need for developers to increase their share of own funds, the inability to meet the requirements of banks for obtaining project financing from a significant number of construction companies, and the lack of a regulatory framework for mass application of project financing. To overcome the negative influence of factors, it is proposed to expand the range of creditors by making the project financing service more competitive, as well as to use the experience of the Project Finance Factory and the mechanism of state guarantees in housing construction. The results of the study can be used in planning the financial activities of both construction companies and credit organizations.