Ivko AlonaScientific supervisor: Candidate of science in Economics, Assistant professor

Khvaov U.U.

Theoretical aspects of implementation strategy and particularities of international financial organization in Ukraine

Strategy and analysis activity of the International Finance Corporation in Ukraine

Cooperation between international financial institutions and enterprises of Ukraine, ways to improve

The subject of the investigation is

the strategy and especially the activities of international financial institutions, taking the International Finance Corporation (IFC) as an example.

The object of the investigation is

the International Finance Corporation and agricultural enterprise.

The purpose of the diploma paper is

to show the strategy and particularities of international financial organization in Ukraine and their impact on private sector as an example.

The tasks of the diploma paper is

to explore the importance of the international financial institutions;to define the strategy and features activities with international financial institutions;to show that international financial organizations and work with the private sector ;to evaluate the advantages and feasibility of cooperation.

International financial organizations devise business strategy individually for

each country

The peculiarities International financial organizations are determined by

economic and political situation in the country

International financial organizations can work either with a country as a whole or with

a private sector

LLC "Burat-Agro" was founded in 1998is part of the Ukrainian agricultural holding «Industrial milk company“specializes in stockbreeding, cropEquity: 194 549 274 UA hrn

Major Sales

marrets “Nibulon”

LLC

"Trade House Peresichanskyy MEW" LLC

«Kremenchuh GMZ

“JSC

"Hlobyno Dairy Plant

“ JSC "Yahotyn

Dairy Plant“JSC

Major competitor

s

Nibulon (agricultural

unit)

GC "Astarte" (agro-

livestock units)

CC "DRG-Agro"

GC “Myrohyv Bread

factory" (agriculture department)

GC "Agroton"

Key recommendationsto improve cooperation

with IFO

To improve access to public services

To improve financial and economic sustainability

To provide sustainable management of energy

To improve laws

IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent.FC's 184 member countries, through a Board of Governors and aBoard of Directors, guide IFC's programs and activities. Each country appoints one governor and one alternate. 

Loan from a commercial bank

(USD)discount rate 12%

Loan from IFC (USD)

discount rate 10%

3 000 000

6 000 000

-967910.38

113769.28

15 000 000

30 000 000

5315713.23

-12889408.72

Amount of loan Value of NPV

Project 1

Project 2

Project 1

Project 2

Benefits from IFCs lendingBenefits from IFCs lending

providing long-term (7-12 years) creditsproviding long-term (7-12 years) credits

loans do not require collateral and guarantees from the state

loans do not require collateral and guarantees from the state

IFC provides advice to enterprise development and effective use of resources

IFC provides advice to enterprise development and effective use of resources

the volume of loans can be range from 1 to 100 million USD

the volume of loans can be range from 1 to 100 million USD

Taking into account difficult ongoing situation in Ukraine, loan borrowed in the national currency might

appear to be more forcastable and profitable for national companies due to low exchange rate risks with respect

to hryvna.

Getting loans from IFC in local currency for private sector