Practical Problems of Investment: Planning and Financing

material assurance

financial assurance

credit in investment financing

active function

This memorandum is expected to give some explanations concerning in- vestment financing in practice. The main question will be the mode of financing; that means, shall investments be financed by means of credit, by budgetary means or by own means of enterprises and associations? This question is coming into being connected with the new economic system of planning and managing the national economy, in the framework of which much more weight is given to so-called value ca- tegories as, for instance, cost, price credit and profits. The in- creasing importance of value categories leads to the necessity to give larger responsibility to enterprises regarding the carrying through of the whole reproduction process including, of course, the extension of the reproduction process by means of investment. Proceeding from this fact the now submitted memorandum deals with the practical process of preparing and financing investments. As a pecular problem the role of credit in investment financing will be treated. Here, the author is forced to deal with a problem being still under discussion in most of the socialist countries.