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RELATIONS BETWEEN GOVERNMENT DEBT
AND INVESTMENT ACTIVITY,
A PARALLEL ANALYSIS OF THE PROCESSES
IN BULGARIA AND GREECE
The present study aims at a parallel analysis of investment, and in particular stock exchange activity and government debt, as well as finding a dependency between the dynamics of these processes and highlighting those stock indicators, for which the relationship with the debt dynamics is of greater significance. The study is based on the thesis ...
The present study aims at a parallel analysis of investment, and in particular stock exchange activity and government debt, as well as finding a dependency between the dynamics of these processes and highlighting those stock indicators, for which the relationship with the debt dynamics is of greater significance. The study is based on the thesis of presence of a strong influence with inverse dependence of the debt burden on the investment activity. We also maintain the hypothesis that the sensitivity of capital markets to the dynamics of government debt is stronger than that of the real-sector investments, driven by the nature of indirect investments and the rapid transfer of capital through liquid stock markets. As a theoretical basis of the survey we have set up a systemic methodology for government debt management and highlighted dependencies on key macroeconomic factors. The methodology of the survey includes a selection of the main measures for the structure and burden of government debt and specific indicators, and indicators for analyzing the investment activity. In order to investigate the dependencies between the two processes, we apply specific comparisons between debt and investment indicators, as well as correlation analysis. We analyze in parallel the debt dynamics and the investment activity in the real sector and the stock exchanges in Bulgaria and Greece for the period 2007- 2017. The results show that the activity of both stock exchanges have had a pronounced negative trend since the beginning of the global recession, which has been going on for ten years now. We have established a strong reverse relationship between the Athens Stock Exchange activity indicators and the Greek debt in its structural components. As far as Bulgarian capital market is concerned, these dependencies are less expressed. We have found arguments for a critical negative impact of the debt burden on investment activity in the real sector, expressed by the correlation between debt dynamics and direct investments in the national economy and foreign direct investments. Our hypothesis for a stronger impact of the debt burden on stock exchange transactions than on real sector investments has been confirmed.
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APPLICATION OF THE EUROPEAN FREE TRADE AGREEMENTS WITH THIRD COUNTRIES
AND THEIR IMPORTANCE FOR THE POSITION
OF CUSTOMS CONTROL IN BULGARIA
Goods origin should be regarded as a complex economic category, which, from a customs perspective, predetermines the existence of specific control guidelines. The variety of free trade agreements between the EU and third countries introduces a number of requirements, the compliance of which must be verified by the customs authorities. This ...
Goods origin should be regarded as a complex economic category, which, from a customs perspective, predetermines the existence of specific control guidelines. The variety of free trade agreements between the EU and third countries introduces a number of requirements, the compliance of which must be verified by the customs authorities. This necessitates the availability of clear technological provisions regarding the issue of proofs of origin by the Union and the verification of such proofs provided by beneficiary countries.
The study aims to assess the feasibility of the free trade agreements between the EU and third countries in our country and thus define and justify the specific characteristics of the customs procedures with regard to the origin of imported goods. This aim has been achieved through:
First. Assessment of the free trade agreements between the EU and third countries in terms of their importance;
Second. Assessment of the relevance of the European free trade agreements for the Republic of Bulgaria;
Third. Discussing the specific characteristics of the main customs procedures for control of the origin of the goods.
The main research thesis is that the provisions of free trade agreements and the related origin of imported goods are the main subject of customs control and, as being such, they have a significant impact on the foreign trade relations of our country.
As a result of the study, the importance of EU free trade agreements with third countries has been justified by the position of the customs control carried out in the Republic of Bulgaria. The foreign trade relations of our country have been analyzed and conclusions have been drawn as to the extent to which the Bulgarian business benefits from the possible customs preferences based on the origin of the goods.
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ORGANIZATIONAL AND ACCOUNTING ASPECTS OF THE BANK GUARANTEE AS A FORM
OF SECURITY
The aim of this article is to analyze the essence of the bank guarantee, to reveal and indicate the possibilities for its utilization in the activities of the non-financial corporations.
The tasks that have been performed in order to achieve the aim are as follows: 1) Inquiring about prices of the bank guarantees as a specific financial service; ...
The aim of this article is to analyze the essence of the bank guarantee, to reveal and indicate the possibilities for its utilization in the activities of the non-financial corporations.
The tasks that have been performed in order to achieve the aim are as follows: 1) Inquiring about prices of the bank guarantees as a specific financial service; 2) Analyzing the financial/bank guarantee contracts as the basis of the relationship between the non-financial corporations-clients under bank guarantee contracts and the bank (credit institution)-guarantor; 3) Analyzing the collateral required as guarantee of loan repayment/ reimbursement by the bank-guarantor as a necessary condition for the conclusion of a financial/bank guarantee contracts; 4) Developing accounting models for financial/bank guarantee contracts in the practice of the non-financial corporations-clients under bank guarantee contracts.
The main research thesis is that the bank guarantee is a reliable business tool with increasingly wider utilization in the activity of the non-financial corporations, including its application as a securing instrument for the settlement of accounts receivable and obligations arising from commercial transactions and as a necessary condition required by the law. An important significance for accounting for financial/bank guarantee contracts in non-financial corporations-clients under bank guarantee contracts is the type of collateral provided.
The conclusions drawn in the study are that the bank guarantee is a reliable business tool/a securing instrument for the settlement of accounts receivable and obligations arising from commercial transactions, it can serve for: 1) improving the accounting organization, 2) accounting models of financial/bank guarantee contracts according to the type of collateral provided and the accounting policy followed in order to ensure fair representation of information in the annual financial statements of the enterprise.
