Analysis of Development of Municipal Borrowing Market in Ukraine: Factors and Trends

The article is to analyze the development of the municipal borrowing sector of Ukraine in terms of its components. There is characterized the municipal borrowing market in Ukraine based on the study of the dynamics of quantitative indices of its functioning during 2003-2015. There are defined the basic forms of sub-sovereign loans. There are overviewed the quantitative and qualitative indicators of development of the local bond market as a segment of the domestic stock market. There are determined the key factors and trends in the management of local debt. Special attention is paid to borrowing made by the capital municipality in the domestic and international capital markets. To stabilize functioning of sub-national debt market there are offered the key directions of improvement of municipal debt policy in Ukraine: legislative regulation of relations in case of default of the municipality, debt restructuring and refinancing to strengthen creditors' financial position; introduction of preferential taxation for investors, inclusion of investment component to tariffs for services, limitation of the minimum terms of borrowing for the full implementation of investment programs.