LOCAL LOAN BONDS AS A TOOL FOR FINANCING PROJECTS OF CONSTRUCTION AND REVITALIZATION OF TERRITORIES

Abstract

The article investigates the history of formation and development of local loan bond management mechanisms in Ukraine. The periodization of the process is carried out in independent Ukraine – to date, seven periods have been identified and characterized based on the analysis of the state and activity of bond issuance by local self-government bodies. The content of local loan bonds by their types, which are classified by characteristics based on the current legal framework and foreign practice, is presented and disclosed. The expediency of scaling this financial instrument to attract funds for the implementation of strategic projects for the restoration and revitalization of the territories of Ukraine in order to overcome the consequences of the full-scale invasion of the Russian Federation is substantiated. The advantages of using local loan bonds are revealed and at the same time their shortcomings are singled out for further consideration in the work on improving relevant management mechanisms, in particular as a component of the financial security policy of territorial communities. The main directions for improving the mechanisms for the issuance and circulation of local loan bonds are formulated, in particular regarding the finalization and harmonization of the provisions of the relevant sectoral laws, the Budget Code and subordinate legal acts, the regulation of the default procedure of local self-government bodies, the expansion of the possibility of establishing individual criteria for local
self-government bodies, the introduction strategic planning and forecasting of local debt (from five years), organizational and educational and methodological support from the central executive authorities regarding the issue of local loan bonds, systematic improvement of professional qualifications of specialists.