Round Table on Local Borrowing Topic
30 March 2010
Round Table on Improving Legislation for the Development of Local Borrowing
A roundtable entitled “Ways of Regulatory Support for the Development of Local Borrowing” was held at the Grand Conference Hall of the Ukrainian National Academy of Sciences on 30 March 2010.
The event was held as part of the Municipal Finance Strengthening Initiative project implemented by IBSER with support from the U.S. Agency for International Development, specifically, of its component aimed at creating the legislative framework for boosting the socio-economic activity in the country and improving the capacity of local governments to mobilize the resources required for ensuring development of local infrastructure.
The roundtable topic acquires special relevance in the present economic situation, when the capital expenditures of the consolidated budget decreased by 51.5% in 2009 against 2008, and by 55.9% for local budgets.
Under such conditions, it is especially important for local governments to attract credit resources, which will have an economic effect and will become a reliable source for implementation of municipal development projects.
That’s why the roundtable discussion was focused on the review and discussion of the legislative proposals aimed at developing the market of local borrowing and guarantees. These proposals have been developed both based on results of the roundtable "Partnership between Banks and Local Governments as One of the Ways for Overcoming the Economic Crisis," which was conducted by IBSER in Kyiv on 16 April 2009, and as the result of a prolonged cooperation between the Institute experts and local government and potential creditors with regard to developing the financial mechanisms for implementation of local infrastructure development projects, in particular, those in the energy saving sector.
About 40 participants have joined the event, among them representatives of the interested government ministries – Ministry of Economy, Ministry of Finance of Ukraine, Ministry of Housing and Communal Services, Ministry of Regional Development, the National Bank of Ukraine, the leading banks and investment institutions, local governments from Lviv, Chercasy, Rivne, Ostroh, Slavutych, Komsomols’k, Sevastopol and Yevpatoria, international experts, and NGO leaders. The event was covered by 15 representatives of the national media outlets (5 TV companies, printed media and information agencies).
The recommendations of the Round Table participants will be prepared on the result of the discussion.
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