Impact of Credit Market Development on Project Financing

University of Žilina in Žilina, Faculty of Operation and Economics of Transport and Communications, Department of Economics, Žilina, Slovakia

^* Corresponding author: monika.poradova@fpedas.uniza.sk

Abstract

The purpose of our report is to assess the prospects and sentiment for bank financing in the real estate sector in Europe, based on the views of bank representatives from 15 European countries. The presented paper is devoted to the issue of project financing. The aim is to provide an analytical overview of the issue of project financing as a specific credit financing instrument with the current access to finance for banks in Europe. The paper consists of four parts. The first part deals with the issue of project financing, the different dates of project financing and classifies project financing in terms of penalties. The second part of the paper aims to clarify the alternative method of project financing and analysis of banks in Europe. The third part of the article addressed the concrete results of the analysis and carried out discussion. Describes the volumes of credit transactions. The fourth part deals with the conclusion of the issue of project financing. A descriptive method, analysis, mathematical-statistical methods, graphic methods, comparison and synthesis was used in the processing of the paper submitted. The result of this article is that, in the future, the general financing conditions are expected to remain relatively favourable across Europe. This may be due in particular to competitive pressure contributing to milder credit conditions. However, trade tensions, declining investments, as well as policy concerns on a global scale, may curb such optimism for the next few years.