THE ROLE OF LOCAL LOANS AS A DEVELOPMENT TOOL OF TERRITORIAL COMMUNITIES

Abstract

Purpose. The purpose of the article is to single out the key aspects of the formation and use of local loans by local self-government bodies in Ukraine, to propose effective approaches to the management of this tool for local self-government bodies based on the analysis and assessment of the use of local loans by local self-government bodies. Methodology of research. General scientific and special methods were used in the research process, in particular: dialectical, monographic, analysis and synthesis – to study the functioning of the local borrowing market in Ukraine; comparative analysis – to compare economic indicators in time and space; abstract and logical – during the formation of theoretical generalizations, assumptions, conclusions. Findings. The article outlines the relevance of the problem of local borrowing as an alternative source of financial resources of local self-government bodies in Ukraine. The essence and economic content of local borrowings and the peculiarities of their implementation in Ukraine are determined; the shortcomings of the functioning of the local borrowing market and legislative support are identified. The current state of development of the local borrowing market in Ukraine is studied. Features of the functioning of the municipal bond market in European countries are highlighted. The importance of credit resources for ensuring the economic development of local communities and the need to eliminate the causes of the identified problems were emphasized. Areas of improvement in the field of local borrowing are proposed, taking into account the experience of European countries. Originality. It is proposed to finalize the legislative framework for the procedure for issuing foreign local loan bonds. It is recommended to expand the possibility of issuing other types of local loan bonds, for example, those that will be secured by property or assets of local governments, in addition to objects that ensure the safety of citizens and the satisfaction of their basic needs, such an approach can contribute to increasing interest from investors. Practical value. Proposals substantiated by the results of the research can contribute to the exit of Ukrainian territorial communities to the Eurobond market, which will involve the creation of a positive image of the territory, the formation of its attractive "credit" history to ensure the stable development of the regions of Ukraine. Key words: local borrowing, credit, bonds, territorial community, budget.