№ 10/2018

Fìnansi Ukr. 2018 (10): 111–127

INTERNATIONAL FINANCES

TERESHCHENKO Hanna ¹

¹SSI “Institute of Educatinal Analytics”
OrcID ID : https://orcid.org/0000-0002-9458-2843

Prospects and priorities of the use of the World Bank’s financial and credit instruments

The article is devoted to the prospects and priorities of using the financial and credit instruments of the World Bank Group, first of all, the International Bank for Reconstruction and Development (IBRD). IBRD uses a fairly wide range of financial and credit instruments. The article considers global, structured and other types of bonds among main types of debt securities issued by IBRD. An important direction in the financial and lending activities of IBRD is the issue of green bonds, the purpose of which is to raise funds for financing ecological projects , in particular low carbon economy. It is noted that green bonds have an added advantage: they often become the starting point for sustainable investment for investors who want to make a useful contribution to the development of environment, and at the same time they would like to fully trust financial and credit instruments of investment, be sure of the threshold of the risk and of the amount of the profit, as well as of the issuer of bonds. It is concluded that the World Bank uses the capital markets mechanism to attract financial resources for addressing climate problems. Including financial disaster instruments. The World Bank combines the interests of investors seeking profitability and diversification of investments from developing countries seeking protection against extreme weather events. Today, many investors integrate environmental, social and managerial factors in the decision-making process. In particular, investors are looking at how they can link financial gains with sustainable development goals. Today, the development of innovative financial instruments remains one of the topical issues. The development of financial innovation, which can, on the one hand, provide profit to private investors, and, on the other hand, socio-economic development. And the main goal is to overcome global poverty, which will be ensured through the financial and credit instruments of the capital markets.

Keywords:financial instruments, bonds, credit, international institutions, World Bank

JEL: E52, E58, G21, G28

Tereshchenko H. . Prospects and priorities of the use of the World Bank’s financial and credit instruments / H. . Tereshchenko // Фінанси України. - 2018. - № 10. - C. 111-127.

Article original in Ukrainian (pp. 111 - 127)

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