Problemi Ekonomiki (Aug 2022)
Localization of Global Mechanisms for Attracting Credit and Investment Resources to Strengthen the Financial Solvency of the Territorial Communities of Ukraine
Abstract
The purpose of the article is to deepen and develop the scientific foundations of localization of global mechanisms for attracting credit and investment resources in the context of strengthening the financial solvency of territorial communities of Ukraine in the postwar period. The article defines the essence and importance of the financial solvency of territorial communities in ensuring the postwar reconstruction of Ukraine; the best practice of localization of global mechanisms for attracting credit and investment resources to the level of territorial communities / municipalities is revealed; the directions of strengthening the financial solvency of territorial communities of Ukraine in the period of postwar reconstruction through a combination of global and local mechanisms for attracting credit and investment resources are substantiated. A structural analysis of local budget expenditures according to the economic classification was carried out in order to identify tendencies in changes in the dynamics of capital expenditures for the period 2014-2021. It is emphasized that in the current conditions it is necessary to look for alternative sources of revenues for the implementation of relevant expenditures of local budgets, since their volumes and directions of expenditure have changed dramatically. Based on the analysis of foreign experience in financing capital expenditures of local government budgets, it is proved that in the context of global growth of public debt in all countries over the world, investment instruments look to be the most attractive, from the standpoint of attracting resources for capital expenditures. The main macroeconomic and legislative risks that threaten the investment climate of Ukraine, apart from military aggression by the russian federation, have been identified. The possibility of attracting investments through the system of international financial organizations and development banks both at the local and regional levels in order to finance the restoration of infrastructure of territorial communities of Ukraine is proved. Proposals as to a synergistic combination of global and local approaches to financing the postwar restoration of territorial communities are substantiated. Due to the projected deficit of local budgets in the postwar years, communities need to start using mechanisms for using new financial instruments of the international market – social, climate, green bonds, impact bonds, and hybrid financial instruments. It is proved that the key element of the financial recovery program should be the newly created after the end of the war Ukrainian Bank for Reconstruction and Development (UBRD). Prospect for further research in this direction is to identify the optimal capital structure of local development institutions and analyze the priority directions of investment in the sphere of financial and credit support for the postwar reconstruction of territorial communities in Ukraine.
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