Uman NUH | today: 07/19/2024

Prospects of Ukraine’s stock market development in the conditions of power decentralization

Author(s) Цимбалюк Ю. А., , ,
Холявіцька К. С., , ,
Category Economics
year 2023 issue Issue number 102. Part 2
pages 194-201 index UDK 330.1
DOI 10.32782/2415-8240-2023-102-2-194-201 (Link)
Abstract Recently, the issues related to the development of decentralization in Ukraine and the implementation of the stock market are still relevant – it is one of the main institutions of the market economy, with the help of which investment resources are attracted to finance regional development programs of local authorities. Mentioned above is a very important to have sufficient resources to provide better and more diverse services to the population, to implement social and infrastructure projects, to develop local development programs and to finance other measures to comprehensively improve the living conditions of residents of communities and regions. Ukrainian stock exchanges resumed trading in short time period since the beginning of the full-scale military aggression of the rf against Ukraine. The relevant permission for the opening of the stock market was given by the National Securities and Stock Market Commission (NSSMC), which removed almost all restrictions on operations in capital markets and organized commodity markets. The stock market in Ukraine is, first of all, trading in domestic government bonds (DGB). Before the start of the war, this market was permanently interested by residents and non-residents, deals were actively concluded, and their volume reached UAH 400-500 million per day. The issue of municipal bonds is also considered as a promising tool for financing the development of cities. Basic advantages of such bonds for local self-government is low interest rates compared to commercial loans. In Ukraine, there are a number of successful precedents of issuing and placing municipal bonds in such cities as Kyiv, Vinnytsia, Ivano-Frankivsk, Lviv, Lutsk, Donetsk, Luhansk and others. From 2003 to 2017, 68 such issues of the value over UAH 11 billion were made. The average volume of transactions with local loan bonds concluded on the stock market of Ukraine is approximately UAH 715.5 million per year. According to the research, each new opportunity that appears in communities has a synergistic effect. New instruments require new knowledge, new solutions and new quality of personnel. To use the opportunities provided by the decentralization reform, one has to learn successful experience of the united territorial communities’ heads and their teams. The implementation of the Swiss-Ukrainian project "Decentralization Support in Ukraine" DESPRO, which supports local self-government reforms, accelerated the process of various forms of municipal loans developing for financing the regional growth’s infrastructure of self-government bodies
Key words stock market, securities, bonds, shares, decentralization, local self-government, DESPRO project, united territorial communities
Download    (Total: 132)