№ 8/2019

Fìnansi Ukr. 2019 (8): 103–116https://doi.org/10.33763/finukr2019.08.103

INTERNATIONAL FINANCES

KLYMENKO Kateryna ¹, SAVOSTIANENKO Maksym ²

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0001-8295-1333
²SESE “The Academy of Financial Management”, Kyiv
OrcID ID : https://orcid.org/0000-0002-6712-5831

Support for development projects in national currencies by international financial institutions

The article analyzes the development of instruments for financing IFIs in national currencies, with a special emphasis on the issues of cooperation with the International Finance Corporation. The main sources of financing of IFIs in national currencies are considered: the issue of local bonds, providing credit lines, Eurobonds in the national currency, etc. According to the results of the study, it is determined that IFIs lending in national currencies contributes to: raising the credit quality of projects that receive profit exclusively in the national currency by eliminating currency risks; creating conditions for domestic investors to diversify their loan portfolios; directing short-term liquidity into the real sector of the economy; increasing the maturity of loans denominated in the national currency; introducing innovative mechanisms for market development, etc. The main principles of Ukraine’s cooperation with the International Finance Corporation (IFC) are described; actual and perspective directions of mutual cooperation are analyzed. The sources of formation and directions of use of financial and credit instruments of IFC in Ukraine are investigated. The article deals with the relevant provisions of the Medium-Term Strategy for Public Debt Management for 2019–2022, Concepts for Improving the Effectiveness of Implementing Common Projects with IFIs, etc., the World Bank Group’s Partnership Concept, namely the IFC, with Ukraine for the fiscal years 2017–2021. The article also analyzes the changes to the regulatory framework regarding the use of IFIs financing instruments in the national currency of Ukraine, introduced in connection with the adoption of a new liberalized currency legislation in early 2019. The paper substantiates that the key tasks and ways of implementing the planned transformations regarding the development of cooperation instruments with IFIs should be updated in the country’s strategic documents in the medium and long term.

Keywords:international financial organizations, European Bank for Reconstruction and Development, International Financial Corporation, international financial cooperation, international financial instruments, IFIs operations in national currencies

JEL: E42, F30, F32

Klymenko K. . Support for development projects in national currencies by international financial institutions / K. Klymenko, M. Savostianenko // Фінанси України. - 2019. - № 8. - C. 103-116.

Article original in Ukrainian (pp. 103 - 116)

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