Social Scientist. v 28, no. 326-327 (July-Aug 2000) p. 70.


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SOCIAL SCIENTIST

currency reserves, refinancing the commercial banks under the collateral of state securities and discounting the promissory notes of industrial enterprises, crediting the development institutes, financing budget deficit, restoring private savings, restructuring of banking system, maintaining system of settlements);

- there should be established strict mechanism of utilizing private bank deposits, guaranteed by the state, for providing loans to the production sector and financing investment in the production through the Bank of Development;

- support and restructuring of commercial banks to be conducted under the programme of banking system restructuring should be linked with their reorientation for crediting and investing to the production sector;

- programme of restructuring of industrial enterprises should be supported by the necessary supply of credit resources, linked with solving the tasks of banking system restructuring and significant increase of management responsibility for assets effective management;

- there should be created prerequisites for formation of vertically integrated financial-industrial groups and large corporations in order to reduce transaction costs, restore cooperation relations, take use of effects of scale, concentrate resources on promising fields of economic growth, "bring up leaders" of national industry, which are able to work effectively on the world market;

- there should be formed a system of target indicators of commercial banks assets allocation in accordance with priorities of state structural policy, supported by the respective system of incentives through differentiated regulation of interest rates and conditions of refinancing.

To encourage the final demand in order to stimulate the production it's advisable to implement the appropriate system of regulating investment and purchase in public sector, as well as support of the demand on the domestic market:

- to establish centralized control over utilization of depreciation charges and accumulation funds at the state-controlled enterprises;

- to encourage domestic potential of increasing goods supply by creating a system of centralized collecting the applications for goods supply from customers, and allocating the orders among production enterprises by implementing respective contract system, supported by centralized granted loans and utilizing various instruments of organization of goods turnover;



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