foir print

22.06.2000

Investment climate and weather in Rostov Region

    Investment climate and weather in Rostov Region Vasiliy Visokov, Vice-President "Centre-invest" reported:

    "Investment climate means a general direction of legislation improvement in interests of investors. In this context weather means concrete deals in investment activity. Today investment weather on the Don better than climate.

    Climate is defined on federal level through such institutes as legislation, government, and president. Weather is defined on local level through regional legislation, government and Governor Vladimir Chub. On this local level situation clearly illustrated by his words "If investor has money he can buy any enterprise on the Don". It's not only words, but also several local lows for secure investments.

    It's may confirm that an investment boom has take place on the Don. Boom is not reflected by official statistics because of its imperfection.

    Growing of manufacturing in 1999 is 21,2%. Growing of profit in industry is 3,2 times!!! Enterprises become more attractive for the investors. Last year share of money payments was 41,2% payment for its product, today it's 62,5%.

    Now the second stage of investment boom can be seen. The stage characterized by concentration blocks of shares. It's a necessary stage of investment preparation. Local investors will sell their own packages for new investors because of shortage own facilities. The risk to freeze own shares in debts of enterprise forever is great. In turn outsiders simply do not agree to do their own investments without buying a control package. Changing an owner is accompanied by additional investments, connected with redeeming the debts of enterprise and renewing the circulating assets.