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Recently PM Modi has visited Russia. In his Russia visit Modi says “India will offer $1 billion loan to Russia for the development of the Far East region ”. Russia is a big country whose far east is not developed as much as west side, and there is not much population live in far east region but this region is rich with natural resources like Cobalt, Gold, oil, natural gas and silver mine, for this many India public private company has invested.Image Credit : Google.India will walk shoulder - to - shoulder with Russia in its development of far east region. Here India has offer 1 billion dollar loan to Russia for far east and is more likely that this loan amount may increase in future upto 4 to 5 billion. If we compare it with China, then China has offer loan to Russia of about 32 billion dollar by 2002 onward and Russia is larger recipient of China.Now come the bigger question inspite of Russia is more powerful country than us and money can be used to boost Indian economy, why giving money to another country. Is it good policy?We have to understand that this money which we are giving to Russia is loan and it is Line of Credit loan, which is in turn helpful for Indian economy.Line of Credit is different from simple loan. Simple loan is when money or assets are given to another party in exchange for repayment of the loan principal amount plus interest.A line of credit (LOC) is an arrangement between a financial institution—usually a bank—and a customer that establishes the maximum loan amount the customer can borrow. The borrower can access funds from the line of credit at any time as long as they do not exceed the maximum amount (or credit limit) set in the agreement and meet any other requirements such as making timely minimum payments.Here Russia can use this loan to build infrastructure project in far east region. Resources and raw material for building this infrastructure they can buy from India, In this way it would benefit India as Indian company getting business. Moreover Line of credit is a loan which Russia will eventually return in future. Government has said that there are currently 279 LOCs, worth $28 billion, extended to various country of Asia, Africa, Latin America etc. The government informed in parliament that 254 project aggregating nearly $4.70 LOCs billion have been completed, while 194 projects worth of $19 billion are under implementation.Moreover, Russia and India have a friendly relationship in past and with this deal our relationship will only improve with Russia. As Russia being powerful country therefore developing such relationship with Russia will be beneficial for India in Future.Jai Hind.Footnotes:On more information about LOCs ..How Loans Work and the Types of LoansUnderstanding Lines of Credit (LOC)What Is the Difference Between a Loan and a Line of Credit?On various LOCs provided to countries by government..Centre outlines plan to counter China’s BRIModi launches Act Far East Policy for Russia; announces $1 bn supportMoscow protest..Thousands March In Moscow Protest Defying AuthoritiesWhy Russians dare to protest and risk wrath of authorities

Startups are usually personally funded in the initial days until they show growth. This growth opens doors for external sources of finance. Here are some of the ways startups are financed:Founder’s own funds: This money is invested by the founder(s) themselves by using their savings, or borrowing informally from friends and family.The person investing may support the business due to their relationship or faith in the entrepreneur. Sometimes, they are also offered equity in the business or a percentage of the profits through a formal agreement. In most cases, the entrepreneur is supposed to pay them back as soon as the business picks up and they are able to do so..Venture Capitalists: Venture capitalists look at the idea and the projected business plan before investing money. Depending on their risk appetite and understanding of the market, they invest in medium to high risk projects as long as they believe in the viability of the business idea, its capability of capturing a large customer base, as well as their faith in the entrepreneur. in return for equity in the business. They are usually serial investors, who gain through their equity as the value of the company increases.Angel Investors: Angel investors are wealthy persons or companies who invest in small businesses. They not only offer financial support but also their knowledge and their networking database. They are different from venture capitalists, as they tend to provide funding to businesses even before they may have broken even, whereas venture capitalists have certain criteria in terms of number of years in business and minimum turnover.Small Business Loans: This is one of the most popular methods of acquiring funds. One can apply for such loans online as well. There are certain eligibility conditions which the entrepreneur needs to meet. These loans get processed quickly. However, such loans are only provided to businesses that have been in existence for a certain number of years, and are producing stable income / profits for the past 2 years.Business Incubators: Also known as business accelerators, offer resources to startups in their growth stages. They offer marketing, technical as well as management resources to multiple startups at once. These are ideal vehicles for people who have business ideas and need support to develop their product into commercially viable models, and/or take it to the market. In order to become a part of an incubator, one is expected to apply to them formally and submit forms which will then be evaluated by the incubator authorities as per their guidelines before formally accepting a team as an incubatee.There are various financing options for startups to get their hands on to boost their growth.

Turkey can deal with its economic crisis through the following options:Firstly. Ankara could obtain loans from the International Monetary Fund. The International Monetary Fund has a history of providing loans to Turkey. The country borrowed $11.4 billion from the IMF following the 2001 economic crisis. However, Turkey is very distrustful of this organization. Remember before the parliamentary elections of 1954, the IMF suggested high devaluation measures to the Turkish Menderes's DP government to obtain loans. However, Menderes rejected IMF demands. Consequently, Turkey’s source of borrowing was limited and foreign currencies were in short supply. Eventually, in 1958, a loan package was agreed ($46.6 billion) with IMF with many strings attached. These requirements led to the military coup of May 27, 1960. As at May 2016, Turkey is now among only about 11 countries that have cleared their debt to the International Monetary Fund (IMF). An IMF loan will have strings attached like higher interest rates that President Erdogan doesn’t like.Therefore, another option is aid from other countries — QATAR & CHINAAnkara could obtain loans from its major ally - Qatar. Qatar has already pledged $15 billion of direct investments for Turkey to cope with its currency crisis. Turkey and Qatar have forged close strategic alliance over the years, with Ankara backing Doha during its standoff last year with other Gulf neighbors, and deploying troops to a Turkish base there. Qatar National Bank, the Middle East, and North Africa’s largest bank, in 2016, bought the Turkey’s Finansbank. Hence, expect more capital from Qatar to Turkish businesses.Ankara could also request for additional loans from China, In July 2018, The Industrial and Commercial Bank of China (ICBC) agreed to a loan package of $3.6 billion for Turkey’s energy and transportation sector. The Chinese bank in 2015 acquired 75% shares in the Turkish TekstilBank in a $316 million agreement. China considers Turkey a gateway to the markets of the European Union and the Europe Free Trade Association, which has free trade agreements with Turkey. Turkey's strategic location in China’s One Belt One Road Initiative makes the country a gate to Europe and Africa for China's trade route. Therefore, Chinese firms are investing heavily in Turkey's logistics, electronics, and other sectors. China’s Cosco Pacific China acquired 65% of Turkey's third largest port, Kumport, in Istanbul for $940 million in September 2015. Located on the Ambarli coast of Istanbul, the terminal handles 1.3 million TEU annually, accounting for 16% of the country’s total container traffic.Furthermore, to address chronic high current account deficits, the country should undergo structural reforms to boost value-added exports. Can be achieved through promoting innovation via research and development (R&D); upgrade the skills of the existing Turkish workforce; improve access to long-term finance for Small Medium Enterprises; post-production marketing and specialized logistic activities.Finally, the independence of Turkey’s Central Bank needs to be ensured. Political interference in the central bank’s policies will have a negative effect. The Central Bank of Turkey should be allowed to raise long-term interest rates to curb rising inflation of about 16% and drop in Lira by 20%.President Erdogan constantly pressures the central bank to lower borrowing costs to boost credit growth in the construction sector.Thus, while the Central Bank intends to hike rates to control inflation; Erdogan wants to keep rates low to boost economic growth.