{"id":13836,"date":"2020-07-20T10:09:47","date_gmt":"2020-07-20T07:09:47","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=13836"},"modified":"2020-07-21T15:31:48","modified_gmt":"2020-07-21T12:31:48","slug":"municipal-credit-as-a-source","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/municipal-credit-as-a-source\/","title":{"rendered":"Ghlukhova, V. & Homulko, N. Municipal Credit as a Source of Financial Support for the Development of Territorial Communities"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification<\/strong>: H10, H74<\/em>
\n<\/span><\/td>\n		DOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V21(2020)-07<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]<\/p>\n

Ghlukhova\u00a0Valentyna<\/strong>, PhD (Economics), Associate Professor, Head of the Department of Accounting and Finance, Kremenchuk National University of Ostrogradsky, Kremenchuk, Ukraine<\/p>\n

ORCID ID<\/strong>: 0000-0003-3120-9651<\/a>
\ne-mail<\/strong>: glukhova710@gmail.com<\/a><\/p>\n

Homulko\u00a0Natalia<\/strong>, 4th year student, Kremenchuk National University of Ostrogradsky, Kremenchuk, Ukraine<\/p>\n

ORCID ID<\/strong>: 0000-0002-9633-0818<\/a>
\ne-mail<\/strong>: homulko08@gmail.com<\/a><\/p>\n

Municipal Credit as a Source of Financial Support for the Development of Territorial Communities<\/h2>\n

 <\/p>\n

Abstract. <\/strong>Introduction<\/strong>. Decentralization is characterized by the transfer of a large amount of powers and budgetary resources to local governments. At the same time, the financial and organizational capacity of local self-government bodies and the enterprises created by them is increasing. Budget decentralization creates new opportunities for borrowing through the placement of local government bonds by city councils. A utility loan is one of the instruments of local governments. Municipal credit, as one of the main financial institutions in the local finance system, is important in the financial support of local needs and the activities of local governments.<\/p>\n

Purpose<\/strong>. The purpose of the study is to analyze the utility loan in the system of financial support of local self-government bodies, identify borrowing funds main problems by local authorities and proposals on the optimization of the local borrowing market in Ukraine.<\/p>\n

Results<\/strong>. The municipal loan is a form of mobilization of the financial resources of local self-government bodies and the basis of municipal investment programs. The main forms of local borrowing in Ukraine are: issuance of domestic local loan bonds; obtaining loans, credit lines in financial institutions, so the article explores the main forms of municipal credit in recent years. The dynamics of local bond issues has been investigated, which in 2014-2018 did not have a stable tendency, due to the economic situation, the weakness of the securities market in Ukraine. It was determined that during the analyzed period the local authorities received quite a lot of external loans from the EBRD and NEFCO, these funds were directed to the replacement of pipelines, modernization of boiler houses, installation of individual thermal substations and heat meters. The volume of local guarantees that tended to increase and aimed at the implementation of investment projects has been investigated.<\/p>\n

Conclusion<\/strong>. Financial decentralization and the needs for innovation and investment development of local communities in Ukraine create conditions for the use of municipal credit by public authorities as a source of financial support. However, there are a number of problems that hinder the development of municipal credit and its most important component – the municipal borrowing market, namely: an inadequate regulatory framework for local loans; lack of transparent information on the activity of issuers and use of attracted funds; low volume, low liquidity and investment attractiveness of municipal bonds compared to other debt financial instruments; low solvency of municipalities.<\/p>\n

In order for the municipal borrowing market in Ukraine to gain more development, it is advisable to: improve the regulatory framework for the issuance of local loan bonds; increase revenue sources of local budgets, including development budgets; to place temporarily free budget funds in the revenue part of the development budget; to create a communal bank, through which the priority directions of socio-economic development of territorial communities will be financed, which will solve certain problems of the communal sector; to provide complete information on the amount of local debt and guarantees provided by the municipality, statistical information on the socio-economic development of the city, provide a credit rating of the municipality.<\/p>\n

Keywords:<\/strong> municipal loan; municipal borrowing; local guarantees; guaranteed loans; domestic local government bonds; municipalities.<\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Bondarchuk, T. G. (2013) Placement: study guide. K. SE Inform. \u00abAnalytical Agency\u00bb 2013, 529 [in Ukrainian].<\/li>\n
  2. Volkova, O. G. (2018) Municipal remarks as a source of different number of local budgets of Ukraine. Black Sea Economic Studies, <\/em>26, 94-97 [in Ukrainian].<\/li>\n
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  10. Palyokha, O. V. (2018). Scientific and theoretical principles of construction of the municipal lending mechanism. Scientific notes of the Ostroh Academy National University. Economy series,<\/em> 9(37), 147-151. doi: https:\/\/org\/10.25264\/2311-5149-2018-9(37)-147-151.<\/li>\n
  11. Analytical review of the bond market of Ukraine for (2018). Rurik National Rating Agency. Retrieved from: http:\/\/rurik.com.ua\/documents\/research\/bonds_3_kv_2018.pdf [in Ukrainian].<\/li>\n
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  13. Zolotukhin, E.V. (2018). Assessment of the creditworthiness of municipalities in Ukraine. Development Management,<\/em> 4(3), 51-60 [in Ukrainian].<\/li>\n
  14. Bryazkalo, A. E. (2016). Local borrowing as a source of financial resources formation by local self-government bodies It rattled. Economy and the state, <\/em>3, 98-101 [in Ukrainian].<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received:<\/strong> 06 May 2020<\/p>\n

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    Ghlukhova, V. & Homulko, N. (2020). Municipal Credit as a Source of Financial Support for the Development of Territorial Communities. Modern Economics<\/em>, 21(2020), 45-51. DOI: https:\/\/doi.org\/10.31521\/modecon.V21(2020)-07.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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    [vc_row][vc_column][vc_column_text] JEL Classification: H10, H74 DOI: https:\/\/doi.org\/10.31521\/modecon.V21(2020)-07 [\/vc_column_text][vc_column_text] Ghlukhova\u00a0Valentyna, PhD (Economics), Associate Professor, Head of the Department of Accounting and Finance, Kremenchuk National University of Ostrogradsky, Kremenchuk, Ukraine ORCID ID: 0000-0003-3120-9651 e-mail: glukhova710@gmail.com Homulko\u00a0Natalia, 4th year student, Kremenchuk National University of Ostrogradsky, Kremenchuk, Ukraine ORCID ID: 0000-0002-9633-0818 e-mail: homulko08@gmail.com Municipal Credit as a Source of
    Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":13475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[134],"tags":[133],"_links":{"self":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/13836"}],"collection":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/comments?post=13836"}],"version-history":[{"count":0,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/13836\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media\/13475"}],"wp:attachment":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media?parent=13836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/categories?post=13836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/tags?post=13836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}