THE ROLE OF LOCAL LOANS AS A DEVELOPMENT TOOL OF TERRITORIAL COMMUNITIES
DOI:
https://doi.org/10.37332/2309-1533.2023.2.12Keywords:
local borrowing, credit, bonds, territorial community, budget.Abstract
Blashchuk-Deviatkina N.Z., Matsei K.P. THE ROLE OF LOCAL LOANS AS A DEVELOPMENT TOOL OF TERRITORIAL COMMUNITIES
Purpose. The purpose of the article is to single out the key aspects of the formation and use of local loans by local self-government bodies in Ukraine, to propose effective approaches to the management of this tool for local self-government bodies based on the analysis and assessment of the use of local loans by local self-government bodies.
Methodology of research. General scientific and special methods were used in the research process, in particular: dialectical, monographic, analysis and synthesis – to study the functioning of the local borrowing market in Ukraine; comparative analysis – to compare economic indicators in time and space; abstract and logical – during the formation of theoretical generalizations, assumptions, conclusions.
Findings. The article outlines the relevance of the problem of local borrowing as an alternative source of financial resources of local self-government bodies in Ukraine. The essence and economic content of local borrowings and the peculiarities of their implementation in Ukraine are determined; the shortcomings of the functioning of the local borrowing market and legislative support are identified. The current state of development of the local borrowing market in Ukraine is studied. Features of the functioning of the municipal bond market in European countries are highlighted. The importance of credit resources for ensuring the economic development of local communities and the need to eliminate the causes of the identified problems were emphasized. Areas of improvement in the field of local borrowing are proposed, taking into account the experience of European countries.
Originality. It is proposed to finalize the legislative framework for the procedure for issuing foreign local loan bonds. It is recommended to expand the possibility of issuing other types of local loan bonds, for example, those that will be secured by property or assets of local governments, in addition to objects that ensure the safety of citizens and the satisfaction of their basic needs, such an approach can contribute to increasing interest from investors.
Practical value. Proposals substantiated by the results of the research can contribute to the exit of Ukrainian territorial communities to the Eurobond market, which will involve the creation of a positive image of the territory, the formation of its attractive "credit" history to ensure the stable development of the regions of Ukraine.
Key words: local borrowing, credit, bonds, territorial community, budget.References
Benovska, L. (2022), “Local positions as a tool for the development of territorial communities”, Svit finansiv, no. 1(70), pp. 49-60.
The Verkhovna Rada of Ukraine (2010), The Law of Ukraine “Budget Code of Ukraine” dated 08.07.2010 no. 2456-VI, available at: https://zakon.rada.gov.ua/laws/show/2456-17#Text (access date May 18, 2023).
“Report on the management of the local debt of the city budget of Lviv for 2020”, available at: https://city-adm.lviv.ua/public-information/budget/lviv/biudzhet-lvova-na-2020-rik/17510/download?cf_id=36 (access date May 10, 2023).
“Report on the management of the local debt of the city budget of Lviv for 2021”, available at: https://city-adm.lviv.ua/public-information/budget/lviv/biudzhet-lvivskoi-miskoi-terytorialnoi-hromady-na-2022-rik/21786/download?cf_id=36 (access date May 10, 2023).
“Report on the management of the local debt of the city budget of Lviv for 2022”, available at: https://city-adm.lviv.ua/public-information/budget/lviv/biudzhet-lvivskoi-miskoi-terytorialnoi-hromady-na-2022-rik/24409/download?cf_id=36 (access date May 10, 2023).
“Information on local borrowing for 2020”, available at: https://mof.gov.ua/uk/miscevij-borg-ta-miscevij-garantovanij-borg (access date May 13, 2023).
“Information on local borrowing for 2021”, available at: https://mof.gov.ua/storage/files/%D0%BC%D1%96%D1%81%D1%86%D0%B5%D0%B2%D1%96_%D0%B7%D0%B0%D0%BF%D0%BE%D0%B7%D0%B8%D1%87%D0%B5%D0%BD%D0%BD%D1%8F_%D0%B7%D0%B0_%D0%BF%D0%B5%D1%80%D1%96%D0%BE%D0%B4_%D0%B7_01_01_2021_%D0%BF%D0%BE_31_12_2021.pdf (access date May 13, 2023).
“Information on local borrowing for 2022”, available at: https://mof.gov.ua/storage/files/%D0%BC%D1%96%D1%81%D1%86%D0%B5%D0%B2%D1%96_%D0%B7%D0%B0%D0%BF%D0%BE%D0%B7%D0%B8%D1%87%D0%B5%D0%BD%D0%BD%D1%8F_%D0%B7%D0%B0_%D0%BF%D0%B5%D1%80%D1%96%D0%BE%D0%B4_%D0%B7_01_01_2022_%D0%BF%D0%BE_31_12_2022.pdf (access date May 13, 2023).
Kozak, V.I., Moskvin, S.O. and Pospolitak, V.V. (2020), Finansovi instrumenty: mizhnarodnyi dosvid vypuskiv munitsypalnykh oblihatsii [Financial instruments: international experience of municipal bond issues], tutorial, Kyiv, Ukraine, 109 p.
Kruhliakova, V.V. and Ishchenko, V.A. (2020), “Local loans as a tool for supplementing the income of local budgets”, Visnyk Kharkivskoho natsionalnoho universytetu imeni V.N. Karazina. Seriia “Ekonomichna”, Issue 98, pp. 28-35.
Maksymchuk, O. (2019), “Local borrowing as a source of capital expenditures of local budgets”, Svit finansiv. no. 2(59), pp. 98-108.
Borshch, H.A., Vakulenko, V.M., Hrynchuk, N.M. et al. (2017), Resursne zabezpechennia obiednanoi terytorialnoi hromady ta yii marketynh [Resource provision of the united territorial community and its marketing], tutorial, Kyiv, Ukraine, 107 p.
Downloads
Published
Issue
Section
License
Open-access articles (open-access journals)
Authors whose articles are published in open-access retain all rights to the content of the articles.
Open access articles are committed to be published under Creative Commons Attribution (CC BY) 4.0. This license allows others to distribute, edit, correct and build upon your work, even commercially, as long as they indicate your authorship. Detailed information at Creative Commons site: https://creativecommons.org/licenses/by/4.0/
Permissions for open-access journals
If the article is published in open-access under CC BY 4.0 or CC BY-NC 4.0 (which was possible till the 15th of December, 2018) licenses, users may reproduce it in accordance with their terms.
Additionally, if the article had been published under CC BY-NC 4.0 (this license authorizes others to download your works and share them with others as long as they indicate your authorship, but they can’t use them commercially in any case.), the use for the following commercial purposes requires permission:
– reproduction of content in a work or product intended for sale;
– reproduction in presentations, brochures or other marketing materials used for commercial purposes;
– distribution of the content to promote or market a person, product, course, service or organization;
– text and data mining for the purpose of creating a saleable product or product which benefits from promotional or advertising revenue;
– use of the content by a commercial entity or individual for the purposes of remuneration, directly or indirectly through sale, licensing, promotion or advertising;
– linking to the content (in an email, webpage, portable electronic device or otherwise) for the specific purpose of marketing or advertising a person, product, course, service or organization for commercial benefit.
For further details and permission requests, please contact.
