The Fifth Financial and Economic Forum
27 November 2009
The Fifth Financial and Economic Forum Held in Kyiv
The Fifth Financial and Economic Forum on “The Ways of Strengthening Cities' Financial Capacity in the Crisis Conditions” was held at the Grand Conference Hall of the Ukrainian National Academy of Sciences on 27 November 2009. The Forum hosted an international conference with participation of the M.E.S.A.10 Slovak Center for Economic and Social Analysis.
The event, conducted by the Institute for Budgetary and Socio-Economic Research (IBSER) as part of the Municipal Finance Strengthening Initiative (MFSI) project, implemented with support from USAID, was devoted to a comprehensive discussion of the issues related to strengthening the financial capacity of local government to improve their ability to implement infrastructure projects, in particular, energy-saving projects.
Participants of the Forum included more than 60 representatives from different branches of government and the public, including those from the Ministry of Finance of Ukraine, Ministry of Economy, Ministry of Housing and Communal Services, National Bank, leading commercial banks, oblast governors, mayors, local finance directors, academics, members of the international expert community and NGOs.
The proceedings were opened by Iryna Sherbyna, Director General of IBSER. She welcomed the participants on behalf of the event organizers and emphasized the relevance and timeliness of conducting the Forum and the International Conference. She also stressed the importance of identifying the key aspects of the 2010 budget formulation in Ukraine and looking for ways and sources of increased local revenue generation. Ms. Shcherbyna familiarized the audience with the tasks of the Experience of Fiscal Decentralization in Slovakia for Ukraine project, which IBSER had implemented in 2008-2009, phases of its implementation, and the areas of using the expertise acquired by the Ukrainian local finance officers during their study tour of Slovakia in July 2009. She drew attention of the audience to another MFSI project component, which envisages steps aimed at mobilization of resources, in addition to the budget funds, for financing the municipal infrastructure improvement projects in Ukraine and searching for new financial mechanisms in Ukraine for leveraging such resources. In her capacity as chairwoman, Ms. Shcherbyna indicated to the key issues to be discussed by the Forum, including:
- parameters of local budgets for the year 2010;
- recommendations for strengthening local budgets; and
- innovative financial mechanisms for infrastructure development.
The proceedings were opened by Iryna Sherbyna, Director General of IBSER. She welcomed the participants on behalf of the event organizers and emphasized the relevance and timeliness of conducting the Forum and the International Conference. She also stressed the importance of identifying the key aspects of the 2010 budget formulation in Ukraine and looking for ways and sources of increased local revenue generation. Ms. Shcherbyna familiarized the audience with the tasks of the Experience of Fiscal Decentralization in Slovakia for Ukraine project, which IBSER had implemented in 2008-2009, phases of its implementation, and the areas of using the expertise acquired by the Ukrainian local finance officers during their study tour of Slovakia in July 2009. She drew attention of the audience to another MFSI project component, which envisages steps aimed at mobilization of resources, in addition to the budget funds, for financing the municipal infrastructure improvement projects in Ukraine and searching for new financial mechanisms in Ukraine for leveraging such resources. In her capacity as chairwoman, Ms. Shcherbyna indicated to the key issues to be discussed by the Forum, including:- parameters of local budgets for the year 2010;
- recommendations for strengthening local budgets; and
- innovative financial mechanisms for infrastructure development.
Hanna Byelokolos, Deputy Director of the Department for Cooperation with International Financial Organizations, addressed the audience on behalf of the Ministry of Economy of Ukraine. She told the attendees about cooperation of the Ministry of Economy with international financial and donor organizations, in particular, with regard to financing of municipal heat generation and supply facilities, building of motor roads, and energy sector. She also provided information about the active collaborative efforts in financing 46 priority projects worth a total of $12.5bn for 2009-2012 and provision of technical assistance totaling $1.2bn. Halyna Markovych, who represented the Ministry of Finance at the Forum, spoke about the key parameters of local budgets for the year 2010 and also underlined that according to the 2010 Budget Resolution, the draft budget was calculated based on a new version of the Budget Code of Ukraine, which essentially means a transition to a new level of intergovernmental finance relations.
The foreign partner was represented by Jan Marusinec, an expert with the M.E.S.A.10 Center for Economic and Social Analysis of Slovakia, which implemented the Experience of Fiscal Decentralization in Slovakia for Ukraine project with IBSER in 2008-2009. His presentation familiarized the participants with the project results, as well as the changes, which took place in the local government finance in Ukraine as the result of implementation of this collaborative project. He noted that Slovakia's local governments had more own-source revenues within their budgets, which was an important signal for both investors and banks. Volodymyr Vysotskyi, IBSER's manager of public-private partnership projects, acquainted the audience with examples of public-private partnerships, as well as the experience and special features of financing the infrastructure development projects via innovative financial mechanisms. He underlined in his presentation that a new version of the Budget Code of Ukraine provided for interaction with private partners in financing development projects, as well as informed about the changes made to the Decree No. 207 “On Approving the Procedure of Borrowing into Local Budgets.”
Later on, Mr. Vysotskyi made a presentation on the topic of "The Joint Financing Institutions (JFI) as a Tool of Facilitating Access to Capital Markets for Local Governments."
Later on, Mr. Vysotskyi made a presentation on the topic of "The Joint Financing Institutions (JFI) as a Tool of Facilitating Access to Capital Markets for Local Governments." Olha Marushevska, an expert with the National Agency for Ecological Investments of Ukraine, familiarized the Forum participants with the experience and prospects of implementing ecological (green) investments by local governments. She told about the experience of Agency's cooperation with international organizations and foreign companies, in particular, about implementation of an agreement between the National Agency for Ecological Investments of Ukraine and a Japanese company, which provides for a reduced emission of greenhouse gases, and about a possibility to mobilize Hr 3.5bn for cutting the emissions, including Hr 200.0mn, which could be mobilized in the public sector in 2010.
During this event, the participants had an opportunity to join in the discussion and debate the issues on the Forum agenda and provide their recommendations with regard to the most efficient course of action for strengthening the financial capacity of cities in crisis conditions. These recommendation will then be finalized and forwarded to all the stakeholders, including national government agencies.
The proceedings of the Fifth Financial and Economic Forum were covered by 12 representatives of national media organizations (TV, radio, printed media, and news agencies).
You can read the Forum materials by going to the Events section of our website.
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