Finance Of Ukraine Research Articles

Struggle against financing terrorism in the world and Ukraine by the way of strengthening the state financial control and audit system

As the title implies the article describes essential world problem – financing of terrorism. It is specially noted the role state finance control in the preditictions of financing of terrorism.
 During the 21st century the topic of terrorism has become one of the most dangerous and large-scale global challenges to the world community. Since the events of September 11, 2001 in the United States of America, the phenomenon of terrorism has become more violent, bloody and cynical. The number of states that have experienced the horrific consequences of acts of terrorism is on the rise, and in turn, bears human toll, destruction of infrastructure, intimidation of people and more.
 The article shows how terrorist organizations are adapting to the current situation and finding new methods and ways of meeting their specific goals with the use of different sources of funding, and what the methods of counteracting them in international practice and in Ukraine.
 Also, It draws our attention to to analyze the notion of terrorist financing and international experience in opposing it.
 Much attention is given to analyze the manifestations of terrorist financing in Ukraine.

Боргова залежність і девальваційний цикл в українській економіці

Мета. Метою статті є висвітлення результатів дослідження причин і механізму нарощення зовнішнього боргу України, взаємозв’язок цих процесів із формуванням девальваційного циклу в економіці країни, а також аналіз доцільності продовження політики нарощення зовнішніх запозичень у майбутньому. Методологія / методика / підхід. Для досягнення поставленої мети використано системний підхід, методи узагальнення, індукції, дедукції, аналізу, синтезу та порівняння. Крім того, нами використано такі спеціальні методи: економіко-статистичний і монографічний (для оцінки й аналізу боргової залежності економіки України); абстрактно-логічний (для теоретичного узагальнення й аналізу результатів дослідження). У ролі емпіричної основи використано офіційні статистичні бази даних Національного банку України та Міністерства фінансів України. Результати. У статті досліджено причини і механізми нарощення зовнішнього боргу України, взаємозв’язок цих процесів із формуванням девальваційного циклу в економіці країни. Також проаналізовано доцільність і ризики продовження політики нарощення зовнішніх запозичень у майбутньому. Установлено, що боргова політика в Україні потребує трансформації у відповідності до національних інтересів. Доведено, що управління державним боргом повинно формуватися з урахуванням ризиків, перш за все, ризику фактичної втрати незалежності країни. Оскільки спекулятивний капітал, залучений за рахунок надприбутковості вкладень в облігації внутрішньої державної позики, не є інвестиціями в реальний сектор економіки, що загрожує різкому знеціненню гривні. Оригінальність / наукова новизна. У результаті дослідження вперше обґрунтовано взаємозв’язок між процесами нарощування зовнішнього боргу та формуванням девальваційного циклу в економіці країни. Дістало дальшого розвитку дослідження ризиків продовження нарощення зовнішнього боргу України. Практична цінність / значущість. Результати проведеного дослідження можуть бути використані для дальших наукових розвідок щодо механізму уникнення ризикової розбалансованості фінансової системи в контексті боргової залежності та девальваційних циклів в економіці будь-якої країни.

Budget Support for Active Aging Processes in the Context of the Sustainability of Public Finances

The article is devoted to the problems of budget support of active aging processes and sustainability of public finances of Ukraine. This problem is urgent because of the accelerating pace of demographic aging, cross-country migration, limited budgetary resources, which in their totality increase the burden on the younger generation, create financial risks for the government and households. This problem remains out of research focus in spite of the rising need to increase budget expenditures, maintain the long-term sustainability of public finances, enforce new regulatory measures on the labor market and the health care system, provide social and educational services, and reduce the poverty among the elderly. New approaches to citizen support should be in line with the European norms, which, in their totality, contribute to the active longevity of the population, reduction of the tax burden, relief of the pressure on the next generations and continuity between generations.
 The financial support of social services provided to the elderly is analyzed, with identifying its problematic aspects. In order to improve approaches to financing social services, a Matrix of Choice of Social Services for Active Aging and Forms of Financing is constructed. To expand the sources of funding for active aging processes, it is proposed to introduce co-financing of selected social projects by government and businesses.
 It is substantiated that the Sustainable Development Goals, as well as the provisions of the Active Aging Strategy, should be consistent and taken into consideration in formulating social and budgetary policies that need to be based on the targets of the Active Aging Index.
 In order to implement the budget mechanism “money goes after a person”, aimed to enhance the targeting of social assistance programs, amendments to the Budget Code of Ukraine, the Economic Code of Ukraine, the Laws of Ukraine “On social services”, “On improving the accessibility and quality of health care in rural areas” are proposed. Recommendations on using the compensatory mechanisms to enhance the ability of the government to provide the adequate financial support for active aging without breaking the sustainability of public finances are elaborated.

Assessment and mitigation of credit risks in project financing

Lending to long-term investment projects in fragile countries requires additional financial instruments to control the sustainability of project cash flows and to increase the borrower’s financial discipline in debt servicing. This paper analyzes the special aspects of using financial covenants as credit risk mitigation instruments in project financing in Ukraine. It also argues that regulatory requirements to maintain financial strength indicators at the appropriate level have an indirect impact on the change in project finance loan rates. The study primarily aims at developing approaches to defining a credit rate corridor for an investment project, depending on changes in the values of financial sustainability indicators. The implementation of the proposed approach allows increasing the validity of credit risk components for investors and optimizing capital value for borrowers.As required by international practice, violation of covenant terms is the trigger for satisfying the creditors’ claims. According to the authors’ conclusions, the use of financial covenants as a tool for protecting the creditors’ interests should not be an instrument of unreasonable financial pressure on borrowers. The study reveals benefits and drawbacks of using financial covenants to mitigate credit risk and reduce the probability of a borrower default in the field of project financing in Ukraine.

The financial mechanism of small enterprises innovation activities

Relevance of the research topic. Increasing capital is one of the most important challenges for ensuring sustainability and growth opportunities for small enterprises both in Ukraine and abroad. Successful activities of small enterprises require constant competitive advantages through the implementation of innovative development models. Integration of Ukrainian enterprises into the global economy is impossible without investing in their innovative development, aimed at overcoming the economic lag behind developed countries, because in an era of dynamic globalization changes, competitiveness depends primarily on the ability to implement innovative projects, which requires significant financial resources. Formulation of the problem. Attracting financial resources to the innovative activities of small enterprises is especially problematic. The main reasons for this situation are high interest rates in Ukraine, the reluctance of the banking sector to lend to projects with a high degree of uncertainty and the weak development of non-traditional forms and methods of attracting financing in Ukraine. Analysis of recent research and publications. The problems of innovative activity of small enterprises and the mechanisms of its financial support were investigated by A. Bondarenko, G. Wozniak, O. Denysenko, V. Zianko, A. Kuznetsova, M. Melnyk, V. Nevmerzhitsky, Yu. Nikitin, Dong Xinyin, N. Stasyuk, A. Cherep, S. Khvalynsky and others. Setting goals, research objectives. The aim of the article is to determine the economic content of the financial mechanism and find out the sources of financing the small enterprises innovative activity and to develop ways to increase the efficiency of small enterprises financial mechanism of innovative activity in Ukraine. The method and methodology of the study. The article used a set of methods of scientific research: a systematic approach, structuring, analysis and synthesis, etc. Conclusions according to the article. The article reveals the essence of the financial support mechanism and its specifics for the innovative activity of small enterprises. The necessity of ensuring small enterprises competitive advantages through the implementation of innovative development models is substantiated. It was stated that most Ukrainian enterprises are now experiencing a shortage of their own funds, and attracting investment is problematic. The main reasons for the difficult access of small enterprises to financial resources are analyzed. Directions of increasing small enterprises financial mechanism of innovative activity efficiency are proposed.

Analysis of public debt of Ukraine

Subject of research is public debt. The purpose of this article is to analyze the status of public debt of Ukraine, its dynamics and structure. Methods which were used in course of research: the method of systemic structural analysis and synthesis, method of comparative analysis, generalization, statistical, General, special methods of scientific knowledge and other research methods. Study results.The article described the views of scientists on the essence of economic category «public debt». Analyzed the periods of the formation of government debt, the dynamics of the budget deficit of Ukraine over the past 10 years, public and publicly guaranteed debt of Ukraine from 2012 to 2019 Indicated the negative effects of the impact of public debt on the economy and forward-looking indicators of public debt in the years 2020-2024. Application of results.Тhe results of the study can be used in the activities of the Ministry of Finance of Ukraine, the Verkhovna Rada of Ukraine, as well as in institutions of higher education in teaching economic disciplines. Conclusions.The state budget of Ukraine is performed by increasing the volume of its deficiency and the use of borrowing to Finance it. The result is an increase in government direct and guaranteed debt, and this is what causes the increased pressure on the public finances, on the development of our country, which negatively affects economic growth. During the years of independence, there were fluctuations in government and government-guaranteed debt, but never reached zero values. The main objective of the government is to stabilize the economy, and hence in the medium term, he needs to resolve the question of reducing public debt because it poses a threat to financial and economic security of the country.

VENTURE CAPITAL IN THE FINANCIAL SUPPORT SYSTEM OF INNOVATIVE ECONOMY

In the article are considered the theoretical bases of venture financing. The economic essence and specificity of venture capital, as well as its main forms and influence on financial provision of innovative economy, are highlighted. Interaction of innovation development and venture investment is considered. The possibilities of using venture capital are determined as an additional source of financing for innovation activity. The world experience of formation and development of venture capital, mechanisms of organization of venture enterprises are analyzed. The present state and main tendencies of development of the venture capital market in the developed countries of the world are researched. The possibilities of using the experience of innovative economies for Ukraine are revealed, where venture capital with its distribution of risk can become one of the effective methods of raising capital to overcome the crisis and deep structural restructuring of the national economy. Conclusions regarding are made the conformity of development of Ukrainian venture financing to the world tendencies. The factors are revealed, which restrain the effective development of the domestic market of venture investments. The risks typical for venture financing are determined, which are conditioned by its features and specificity of the mechanism of such financing. The ways of minimizing and avoiding the risks of venture financing for the investor and the enterprise-recipient are set out. The practice of using venture financing in Ukraine is evaluated, on the basis of which conclusions are made about the high efficiency of venture financing for the newest innovative enterprises. The complex of measures was proposed and recommendations on creation of favorable investment climate for stimulating the development of venture business, activation of innovation activity in Ukraine, were given.

BANK PROJECT FINANCING IN THE CONDITIONS OF MACROECONOMIC INSTABILITY IN UKRAINE

Introduction. Banking project investments as one of the important factors of economic development of any country should be investigated. Despite the relative novelty of project financing in Ukraine, it should be studied because this process has been widely used for a long period in the world, which is confirmed by the implementation of large-scale projects. The purpose of the article is the implementation of a comparative analysis of bank project financing in Ukraine and the world during the pre-crisis macroeconomic situation, as well as the development of appropriate proposals for further development of the mentioned investments. Results. It substantiated the promotion project financing would be impossible in the conditions of the predominance of the short-term loans and the unwillingness of banking institutions to participate in the financing of infrastructure and investment projects. The factors hindering the development of bank project financing in Ukraine were determined. Significant potential for the rapid development of project financing has been fully confirmed by the corresponding market demand. However, for the development of project financing in Ukraine it is necessary to realistically and in detail assess the viability and profitability of projects. Also, the most effective leverage can and should be appropriate changes in the legislation that might give the guarantee bilateral protection of investors and creditors, as well as describe the approaches to the formation of a simplified mechanism for this type of financing.

National innovation system: current trends and challenges for Ukraine

The subject of research in the article is the National Innovation System (NIS). The purpose of the article is to study the current state of the NIS of Entrepreneurship and the essence of public-private partnership in innovation. Objectives: to reveal the essence and structure of NIS, to substantiate the features of their development in the context of the fourth industrial revolution, to characterize the current state of the NIS, to systematize the limitations of its effective functioning. The following results were obtained: proposals were developed to improve the NIS taking into account the challenges of the fourth industrial revolution. Conclusions: the article reveals that Ukraine has good results of innovation in terms of indicators characterizing educational potential, human capital and research. At the same time, the slowdown in innovative development occurs due to an unfavorable institutional environment, environmental instability, operational instability, government inefficiency, problems with the rule of law, uncertainty in the status of insolvency and investment provision. Overcoming obstacles to the formation of the NIS of Entrepreneurship is an important condition for the development of the national economy, dictates the need to improve the state's innovation policy. The active involvement of the state in the development of the NIS will allow to overcome the following obstacles: insufficient use of opportunities for participation in international programs; inconsistency between the provisions of the Civil Code of Ukraine, which regulate intellectual property relations and special acts on this issue, limited efficiency of innovation infrastructure, insufficient development of venture financing in Ukraine and problems of legal protection of property of foreign investors. The improvement of the situation will be facilitated by the establishment of public-private partnership, which in relation to the innovation sphere is an organizational form of cooperation between the state and business in the implementation of innovative projects in certain areas of the national economy on a contractual basis. Thus, the relevance of public-private partnerships for innovation has been proven.

Innovative financing of creative projects on the Kickstarter platform: Ukrainian and Polish experience

In the era of digital economy, the crowdfunding platforms provide the background to mitigate cross-country differences within project financing. In particular, creative projects are important as a vital driver in maintaining business and social sector competitive. Thereby, research problem lays upon the potential of providing crowdfunding support to overcome the creative project divide in different countries. The paper aims to provide scientific support on creative projects innovative financing in Ukraine and Poland within Kickstarter. The research methodology is based on Kickstarter data (10 years; 83 industries and 898 projects) processed by statistical analysis. The Concentration Ratio (CR) was modified to measure the concentration of efforts, considering the largest creative industries within Kickstarter platform. The results section represents high rates of concentration of efforts for Ukrainian creative projects that commercialize tangible physical goods: Product Design and Gadgets. At the same time, in Poland the main concentration of efforts is in the field of intangible intellectual products: Tabletop Games and Video Games. Thus, digital platform is a reflection of interrelations between intangible and tangible values in economies. The study results can be used within national programs of creative innovative projects financial support. In relation to other countries, more extensive study is required.

МЕТОДИ БЮДЖЕТНОГО ПЛАНУВАННЯ МІСЦЕВИХ ФІНАНСІВ

This article focuses on justification of improvement of methodological support of local budgetary planning within the context of decentralization. In this context, local budgets are considered as plans for the creation and use of the financial resources needed to provide the functions and powers of local self-governments. The article identifies particularities of formation of local budgets of the united territorial communities, as well as the directions of concentration of efforts in the budgeting of united territorial communities. The scientific principles of budgetary planning on the local level are justified. The scientifically justified methods of budget planning like analytical method (method of coefficients), normative method, method of balance and program-target method are described. The article focuses on the program-target method of budgetary planning of the local finances, as the most appropriate method for modern requirements of development of local finances in Ukraine. The particularity of the program-target method is that it provides planning and execution of the budget for the medium term, oriented towards the achievement of a specific goal in accordance with the established priorities. The idea of program-target method is to focus not only on the possibilities of the budget (existing resources) but also on how to create the best usage of them in order to get specific results. The model of realization of the budget process according to the program-target method is proposed, which includes the following stages of its implementation: 1) definition of the purpose of socio-economic problem; 2) justification of the purpose of solving the socio-economic problem; 3) formation of budget programs; 4) development of tasks for the implementation of budget programs with the indication the timing of their implementation; 5) formation of performance indicators; 6) implementation of planned budget programs; 7) monitoring of results; 8) determination if the goal has been achieved and formulation of the report on its results. It is emphasized that the quality of the budgetary planning of the local finances is provided with the help of the following factors: 1) the final result that must be achieved by using local budgetary financial resources; 2) availability and realism of information used in budgetary planning; 3) budgetary planning method according to the conditions of decentralization. A conclusion was made that the use of the program-target method of planning local budget expenses requires adjustment according to the realities of social and economic development as well as with the decentralization.

Smart Specialization as an Innovative Strategy for the Regional Economic Growth: Experience of Central and Eastern European Countries for Ukraine

The initiated processes of reforming the government and public finances in Ukraine have provided real opportunities for increasing the resources for sustainable development of regional economic systems, communities and territories. At the same time, domestic practice shows ineffective mechanisms for implementing the State, regional policy, deepening both interregional and intra-regional asymmetries in terms of socioeconomic development. These aspects highlight the increased interest in the scientific and practical problem of converting opportunities into tools to stimulate economic growth of territories and updating the State Regional Policy of Ukraine, which should be based on the system of multilevel governance of territories and development of its strategic vision, especially in terms of competitive advantages. The purpose of the study is to systematize the experience of strategizing the regions of the EU, Central and Eastern Europe and to carry out a comparative analysis of the choice of priority areas of smart specialization in terms of groups of regions with appropriate economic structure. The object of research in this article are the processes of strategizing the regional development on the basis of smart specialization in Ukraine and the EU Member States. In the course of the research a set of general scientific methods of scientific cognition (system analysis, logical generalization, analogy, comparative analysis) was used, which provided an opportunity to realize the integrity of scientific research. The practices of regional strategy on the basis of smart specialization of Central and Eastern European countries are analyzed. Their economic profile and priorities of reasonable specialization are determined. The peculiarities of the functioning of the economy of the countries / regions selected for analysis are highlighted. Emphasis is placed on the consequences / benefits of implementing innovative strategies for the economic progress of countries / regions. A comparative assessment of the priority areas of smart-specialization of the EU and Ukraine in terms of groups of regions with the appropriate structure of the economy is made. As a result of the study, no unambiguous correspondence was established. Recommendations are given and imperatives are determined, upon which the policy of sustainable growth of the regions of Ukraine should be developed, based on the results of the conducted research.

Transparency of Public and Local Finances: Foreign Experience

In modern conditions, the role of transparency of both public and local finances is growing significantly, which is a tool to increase the efficiency of financial resources, which confirms the analysis of Ukrainian and foreign studies. In Ukraine, the level of transparency is improving every year and as of 2019 is assessed by international organizations as the minimum allowable. At the same time, the level of transparency of local budgets differs significantly in different regions. To improve the situation and implement best practices in the field of transparency of public finances at both the state and local levels, it is important to analyze the foreign experience of those countries that are leaders in ratings of transparency of public authorities and transparency of the budget process. The paper analyzes the experience of the Office of the Public Accountant of Texas (USA), the Treasury of New Zealand, and the Treasury of the Republic of South Africa, which according to the open budget rating provided by the International Budget Partnership are among the 10 most transparent countries. Analysis of the content of the information portal of the Texas Public Accounts Controller Office showed a separate section “Transparency” with a detailed presentation of information in terms of key blocks of revenues and expenditures, state budget and finances, information on the formation and use of funds in all localities, information on budget deficit as well as information on transparency at the level of individual settlements, school districts, etc. A comparative analysis with the state of transparency of Ukrainian government agencies responsible for the development and implementation of fiscal policy and identifies weaknesses and strengths in terms of their transparency. It is established that the openness of the process of using public finances in Ukraine is gradually increasing, while the positions in the world transparency rating are also improving. However, the conceptual difference between building sites in the countries analyzed is that they report to taxpayers in a form that is accessible to them, rather than simply covering available information without comment or explanation. Keywords: open budget, participation, public finances, rating, fiscal policy.

Current trends in household finances of Ukraine

The article considers the peculiarities of the functioning of household finances in Ukraine in modern conditions, examines their place and role in the financial system of the country. The basic functions of household finances are specified and it is determined that the household is an important subject of financial relations, which interacts with the state, economic entities, financial market institutions, continuously creates incoming and outgoing cash flows, the size of which tends to increase. The sources of income generation and expenditures of Ukrainian households have been clarified, as a result of which we can state the dominance of wages and social benefits in income and consumption expenditures in total household expenditures, which significantly reduces their investment activity. The analysis of statistical data characterizing the financial condition of households in Ukraine was carried out and the growth of nominal values of such indicators as total income and expenditure of households, minimum and average wages, pension, social assistance, subsistence level was noted. In 2020, there is an increase in unemployment in the country, which has a negative impact on household income, reduces solvent demand and creates an additional burden on the budget. A study of the financial condition of households in the context of the coronavirus epidemic and the introduction of quarantine measures in Ukraine. We note its deterioration and note the low level of savings of the population, which leads to a decline in living standards and the need for government support. The key problems in the sphere of household finances are formulated and perspective directions of their development are determined, the use of which will allow to increase the level of well - being of households and will have a positive impact on the socio - economic situation of the state as a whole.

Activities of the Ministry of Finance of Ukraine, USA and Italy: comparative legal characteristics

In a dynamic society, the issue of functioning and implementation of a balanced and clear mechanism of development of the financial system of Ukraine becomes very important. In a dynamic society, the issue of functioning and implementation of a balanced and clear mechanism of development of the financial system of Ukraine becomes very important. It is believed that the concept of the financial system is a development of a more general definition - finance. At the same time, as noted earlier, finances express economic social relations. The concept of the essence of the financial system, the peculiarities of its functioning is directly related to the nature and functions of the state. A sound financial system is at the heart of the development and successful functioning of a market economy and a necessary prerequisite for the growth and stability of the economy as a whole. This system is the basis and distributes the savings of society, as well as facilitates its day-to-day operations. Although the structural transition from a predominantly centralized planned and controlled economy to an economy operating in accordance with market principles involves many elements, the most important thing is to create a sound financial system. Current trends in the development of world finances in general and the financial systems of states, in particular, objectively determine the further deepening of financial globalization, strengthening relations between countries, which is especially evident in the conditions of the global financial crisis. Despite the integration processes, each state strives to maintain its sovereignty and the peculiarities of the development of financial systems. The article describes the main powers and functions of the Ministry of Finance of Ukraine, discloses foreign experience and provides a detailed description of the features of the US Treasury and Italy with an analysis of their effectiveness, and outlines ways to improve the work of the Treasury, taking into account the experience of other countries. The rights and responsibilities of the central executive power of Ukraine in the context of the formation of the state financial policy are analyzed. It is proved that the Ministry of Finance of Ukraine is the leading body in the system of central executive bodies in the sphere of implementation of the unified state financial policy. For meaningful analysis of the administrative and legal status of the Ministry, the main tasks related to the formation and provision within the limits of powers in the field of financial control, coordination and directing the concentration of financial resources to the priority areas of socio-economic development of Ukraine are formulated.

MONITORING OF KEY INDICATORS OF THE STATE DEBT OF UKRAINE: MODERN TRENDS

The article contains a theoretical generalization of the essence and necessity of state borrowing, monitoring of indicators of state and state-guaranteed debt in the conditions of government aspirations and actions in the field of ensuring the sustainability of public finances in Ukraine. The main task of the authors is to monitor the indicators of state and state-guaranteed debt in the context of the need to ensure the sustainability of pub- lic finances of Ukraine. State debt in Ukraine remains a significant factor of macro-financial risk. An important measure to prevent the threat of uncontrolled growth of public debt is to strengthen financial control and the implementation of continuous monitor- ing of its main indicators. The cost of public borrowing and the assessment of the effectiveness of their use as a factor in ensuring the sustainable development of the economy is a constant source of discussion between officials, public organizations, and representatives of scientific analysis centers. The article uses the generally accepted methodology for calculating the main indicators characterizing the state’s debt policy. The method of expert assessments analyzes the condition of the state debt and prospects of its servicing in Ukraine. Statis- tical and analytical methods have been used for the processing of statistical data on the study of the dynamics of indicators of state and state-guaranteed debt in Ukraine. The sources of information were the materials of the Ministry of Finance of Ukraine, the State Treasury Service of Ukraine, as well as the Budget Code of Ukraine, laws and regulations of Ukraine relating to the budget sphere, scientific works of domestic and foreign scientists. This study aims to address the issues of analyzing and evaluating pub- lic debt indicators in the context of improving debt management. The authors propose to use 10 indicators to monitor the state of public debt and make managerial decisions in public finance.

Management of investment risks in the system of project financing

Purpose. The aim of the article is to investigate the problem of investment risk management in the project financing system. Methodology of research. The methodological basis of the study is the dialectical method of scientific knowledge. General scientific and special methods are used in the process of research, namely: abstract and logical, deductive and system analyzes – in the study of the peculiarities of project financing implementation; problems of management of investment risks in the project financing system; substantiation of ways of activation of development of project financing in Ukraine. Findings. A literary review and analysis of modern approaches to defining the concept of “project financing” have been carried out. The problematic aspects of the development of project financing in Ukraine are identified and the most common instruments for neutralizing investment risks in project financing are analyzed. According to official statistics, a significant proportion of business entities are found to be operating at a loss or low level of profitability, which negatively affects their creditworthiness and limits access to bank lending. In such circumstances, an important way out of this situation is to activate the development of project financing. Project financing, taking into account investment risks, can be provided by reliable financially sound banks, which have effective risk management, long-term resources, highly qualified specialists in financial investment analysis and consulting. Originality. The reasons for insufficient distribution of project financing in the banking sector of Ukraine have been identified and the directions of its activation have been proposed. Practical value. The findings of the study, which are expressed in the conclusions and proposals, contribute to solving the problem of improving investment risk management in project financing. Key words: project financing; project risks; investment risk; investment climate; investment risk management.

Current state of financial policy and budgetary security of Ukraine

The subject of the study is financial policy and budgetary security. The purpose is studying the current state of financial policy and budgetary security of Ukraine. The methods used in the research process: method of comparative analysis, generalization, statistical and other research methods. The results of the work. In the article the current state of financial policy and budgetary security of Ukraine is characterized; the state debt, budget deficit and the expenditures for financing the needs of defence and security are analyzed. The important task of the state financial policy and the ways of its implementation are noted. The factors to be taken into account in financial policy-making for the medium-term perspective and the main problems of financial policy are identified. The attention is paid to the important issues of the relevant financial policy implementation. The budgetary security of the state with its main tasks is analyzed. Its most important criteria and what it should provide are defined. The initial characteristics of budgetary security and its leading threats are shown as well as the main indicators of budgetary security and priorities for its strengthening. The field of application of results: the Ministry of Finance of Ukraine, the Verkhovna Rada of Ukraine. Conclusions. The article contains the analysis of the state debt of Ukraine (estimated at UAH 1929759 million in 2016, UAH 2141674 million in 2017, UAH 2168627 million in 2018, UAH 2171918 million as of 31.01.2019), the deficit of state budget of Ukraine (estimated at UAH 70130 million in 2016, UAH 47850 million in 2017, UAH 94116 million in 2018, UAH 90732 million as of 31.01.2019), the state budget expenditures for financing the needs of defence and security (estimated at UAH 58097 million in 2016, UAH 68859 million in 2017, UAH 98800 million in 2018, UAH 102910 million as of 31.01.2019). Analyzing the data of state debt, budget deficit and state budget expenditures for financing the needs of defence and security we can say that today there is much work to do. It is necessary to find the ways of solving many problems for our country’s prosperity.

Nationalisation of the «Privatbank»: a look through the convention on human rights and fundamental freedoms

The introduction of the temporary administration gives the Deposit Guarantee Fund not only the full and exclusive right to manage a banking institution, but also the right to dispose of them. Due to this, the Fund sold, and the Ministry of Finance of Ukraine acquired one hundred percent of the shares of «Privatbank». The conclusion of this agreement was preceded by recognition of the bank as insolvent, consideration of the issue of threats to national security at a meeting of the National Security and Defense Council of Ukraine, and a meeting of the Cabinet of Ministers of Ukraine about accepting the National Bank’s proposal to buy out a banking institution. Given this, it is worth noting that the nationalization of «Privatbank» began with the introduction of a temporary administration, and it ended with the state registration of ownership rights to the company's shares. Nationalization is a violation of the right to peaceful possession of property and the right to respect for private and family life because the right to engage in commercial activity is in the private sphere, business premises are, according to the practice of the European Court of Human Rights, in the category «home» And the shares of the company belong to the category of«property», taking into account Article 1 of the Protocol to the Convention on the Protection of Human Rights and Fundamental Freedoms. These rights are not absolute, thus there is the question of determining the legitimacy and proportionality of governmental intervention in their implementation. Affiliation of «Privatbank» to systemically important may indirectly indicate the presence of public interest in interfering with the rights of bank owners for prevention a financial crisis. Also, the consideration of this issue at a meeting of the Council of National Security and Defense of Ukraine is intended to aggravate the significance of the problem. The public cannot provide these events with a proper assessment due to the secrecy of all relevant information: the National Bank of Ukraine and the National Security and Defense Council of Ukraine refused to provide any information.

SOCIAL FINANCE TAXONOMY IN TRANSITION TOWARDS A MORE SUSTAINABLE ECONOMY

The successful development of a sustainable economy and society in together with the Sustainable Development Goals (SDG-2030) requires comprehensive and coordinated efforts of governments, businesses and civil society in order to establish unified and clear rules and regulations for economic activity. In order to reach this goal the European Union begun the development of EU sustainability taxonomy, which is to ensure an equal understanding of the content of activities of enterprises, projects and investments that meet sustainability criteria. So as to realize the potential of the market for social investments and loans, unification of approaches for understanding the main concepts of the social financing process is necessary. The purpose of the study is to develop proposals for the classification of subjects and objects of the subsystem of social finance consistent with sustainability taxonomy. The research applies methods of induction and deduction, scientific abstraction of theoretical generalization and comparative analysis while studying definitions, best practices of social investment and for developing the classification of social impact investments and social enterprises. The article provides coherent analysis of the formation of social entrepreneurship and finance in Ukraine. Based on the results of the study, the most relevant classification features of social enterprises and investments were developed and recommendations were made for integrating social finance taxonomy into sustainability taxonomy. The results of the research are of both theoretical and practical value.