Benefits and drawbacks of the “East development model” and low-interest credits for the formation of the Ukrainian economy in the modern context

Abstract

The article examines the importance of state regulation of money market interest rates in Ukraine, namely loans with low interest rates in the context of comparison with global practice of their application. The paper examines the experience of economic development of Eastern countries and the conditions of borrowing the “Eastern model of development” in modern Ukrainian realities and the importance of loans with low interest rates for the economy of Ukraine. State regulation of interest rates in modern economies occupies a prominent place in the arsenal of central banks and allows to implement measures of tactical influence and achieve the desired parameters of the monetary sphere and economic conditions. Regulation of interest rates at the current stage of transformation processes in the world is gaining new meaning and can promote economic growth and price stabilization. As a result, the author concludes that for the active development of the country’s production potential it is necessary (taking into account international experience) to create conditions for attracting investment, including national, fair lending (reduction of interest rates on loans), tax holidays, which will stimulate production activity. population and economic growth.