Review of the machine industry of Ukraine

Active investment process in Ukraine is one of the important indicators of the efficient functioning of the economy. Investment infusion contribute to the restructuring of all branches of the industrial sector and the stability of economic development of our country.Branch Engineering of Ukraine provides a powerful and extensive industry sector, numbering more than 11 thousand small, medium and large enterprises.The most developed industries are heavy engineering and transport engineering in Ukraine. The modern structure characterized by a predominance of metal-engineering industries and the weak development of knowledge-intensive, which is reflected in the innovative development of mechanical engineering.The main consumers of Ukrainian engineering products are the Russian Federation, Belarus, Kazakhstan, Germany, Hungary, Poland and Iran.Currently seeking funding is the most important problem for the machine-building enterprises of Ukraine.The main objective of the investment activities of Ukrainian enterprises of mechanical engineering is the search for and effective use of all possible financial resources – both internal and external.The basic sources of attracting investment funds for the enterprises of mechanical engineering are the following:1.Internal means:-State funding;- Bank credit facilities;- Proceeds from the privatization of state property;eigenvalues ​​assets of enterprises.2. External funds:- Funds from foreign investors;- International loans.
In Ukraine, the Program of “Prosperous society, competitive economy, effective state”, which provides for the intensification of innovative processes and to fully use the potential of science in the process of technological modernization of the economy. Indicators of achievement up to 2015 identified an increase in the share of innovation active enterprises from 10.7% to 25% and increasing knowledge-intensity of gross domestic product from 0.95% to 1.5%.The role of credit and investment banking industry is becoming more fundamental, because the banks have available cash assets to control the excess reserves and the money supply. Therefore, the following most important sources of funding for the domestic machine-building enterprises are domestic and foreign bank loans and investment funds and insurance companies.No less important source of investment funds are the proceeds of the privatization of state property of Ukraine.According to the state program of privatization for 2011 – 2014 years. It is expected to reduce the public sector share of the economy from the current 37% of GDP to 25 – 30%.Own funds of enterprises are the most numerous largest sources of attraction of investments in the Ukrainian machine-building enterprises.The most important source of financial support machine-building enterprises of Ukraine are investments in fixed assets.The main task of the state of development of domestic machine-building activities should be a re-creation of import substitution of high-tech mechanical engineering at the highest possible level with the involvement of the industry in a sufficient volume of investment funds.Given the limited budget funding to important and significant sources of financing engineering enterprises include funds of commercial banks and investment companies. In order to reduce the cost of credit should be provided for the use of high-tech industries of partial compensation of mechanical engineering interest rate on loans.The most numerous largest sources of attracting investments to enterprises of mechanical engineering are own funds of enterprises. However, for the majority of the industrial enterprises of Ukraine is not possible to re-equipment only by profit, depreciation and amortization. Therefore, in conditions of significant deficiency of investment funds for financial support of machine-building enterprises should be involved in both internal and external sources of investment. In this connection special importance is the problem of attracting foreign investment, which not only contribute to the macroeconomic stabilization of the economy and accumulate capital, but also promote the growth of the industry factors, and provide access to modern technologies.Increased foreign investment income is subject to a certain state guarantees to foreign governments and investors.