INTERNATIONAL FINANCES

BAZYLJUK Yaroslava B.¹

¹State Educational and Research Organization “Academy of Financial Management”

Priorities of increasing the effectiveness of Ukraine’s cooperation with international financial institutions

The article investigates the actual possibilities of cooperation with international financial institutions (IFIs) to maintain financial stability at the global and national levels. The role and status of cooperation with IFIs concerning projects in the public sector within the context of the strategic priorities of the organizations and tasks of economic recovery in Ukraine are investigated. The directions of increasing effectiveness of resources’ attraction from IFIs have been defined as modernization of the mechanisms and the adaptation of the best cooperation forms with IFIs that allow to enhance economic growth in Ukraine. It has been determined the feasibility of developing new forms of cooperation with IFIs through the use of more efficient forms of financing that allow to diversify funding sources and extend the maturity of credit. The need of implementing the system in the field of stimulation of the long-term investment through the creation of an enabling environment for institutional investors has been substantiated. The necessity to establish innovative financing mechanisms to attract long-term funds for investment targeted to the state programs is actualized. The restoration of constructive cooperation with the IMF is considered as an essential for the further integration into international financial environment and for the anti-crisis support to economic development of Ukraine. It has been defined the need for improvement of methodological approaches in the public sector projects’ selection, which are expected to realize with the use of IFIs resources and systematic development of an enabling environment for investment. The economic recovery activation in Ukraine can be drawn on the considerable capacity and experience of IFIs that allows to solve the problem to improve the sustainability of public finance and enhance economic growth in emerging economies, to improve existing practices of the public debt optimization, to create regional financial mechanisms to ensure stability, as well as their analytical and advisory capabilities. The use of financial instruments can reduce the financial risks through the use of new financial products of IFIs. Financial market development in Ukraine will allow to restore economic growth and systematically improve international competitiveness.

Keywords:international financial institutions, long-term investment, financial arrangements and financial instruments.

JEL: F33, F34, F35, F55

BAZYLJUK Y. B. Priorities of increasing the effectiveness of Ukraine’s cooperation with international financial institutions / Y. B. BAZYLJUK // Фінанси України. - 2014. - № 1. - C. 54-66.