International financial and credit institutions in the financing of the public development of Ukraine

  • Galyna Kucher Kyiv National University of Trade and Economics
Keywords: external official sources of the financial resources, international financial organizations, international financial and credit institutions, state and state-guaranteed debt, sovereign state, financing of the public development

Abstract

Annotation. The subjects of the study are theoretical and practical questions which were related to the role of international financial organizations (IFO) in the financing of the public development of the country. The article purpose is the opening to the reveal influence of the international financial and credit institutions in the financing of the public development of Ukraine. The research methods. The paper used the set of general scientific and specific methods and approaches, such as dialectic, systems, the method of scientific abstraction, comparative and factor analysis, logical approach. Results of the work. The role and importance of IFO as the important source of the external financial resources was disclosed. It summarised the scientific approaches for the use of the international financial assistance and for ensuring of the economic development in the conditions of the financial imbalances, and for improving the state financial management. It is shown that the experience of the international financial organizations and their recommendations allow taking into account the global and regional trends and processes, risks and problems that take place in the financial environment. There are important for the formation of the financial policy development of the sovereign states and for the improving the formats of their cooperation on the international arena. The influence of «The Paris Declaration on Improving External Aid Effectiveness» for the international financial cooperation and for improving the norms of the national laws, the implementation of the programs and projects of IFO are shown of the article. The significance of cooperation of the sovereign countries with the international financial and credit institutions for forming standard approaches in the financial management and for improving the financial and credit mechanism by the countries which are the recipient of the international financial assistance was disclosed. The using of the external sources of the financing of the national development for all years of Ukraine's independence and their parts in the structure of the state and state-guaranteed debt were analyzed. It determined that the average value of the external component of the state and state-guaranteed debt of Ukraine consist 66.99% in 1992-2016. The experience of Ukraine from using the resources of the international financial and credit institutions was summarized. Sphere of application results: the financial and credit policy of the state for the speed-up of the economic development. Conclusions. The receiving of the resources from the external official sources is allowing implementing the best experience and is getting the resources from the different investors or different forms, or different conditions, or different instruments etc. It will ensure the diversification of the risks under the balancing fiscal policy and the improvement of the financial mechanism. The Institute of the state forms an influence on the movement of the financial resources and provides positive results in the dynamics of the national economy. It is placed in accordance with the strategy of the public development and the international agreements what reflected the global priorities of the development. A sovereign country has the advantages in getting the external official financial resources compared to other economic entities, which are determined by the trust in a sovereign state. It includes a support in the international arena and the best conditions for obtaining the financial aid. The additional financial resources as the part of the external official aid allow introducing the latest technologies and financing mechanisms of IFO, which improving the best management of the financial resources and increasing the effectiveness of their using.

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Author Biography

Galyna Kucher, Kyiv National University of Trade and Economics

Galyna Kucher, Ph.D. in Economical Science, Associate Professor

Published
2017-11-08
How to Cite
Kucher, G. (2017). International financial and credit institutions in the financing of the public development of Ukraine. University Economic Bulletin, (35/1), 221-230. Retrieved from https://economic-bulletin.com/index.php/journal/article/view/124
Section
Finance, Monetary Circulation and Credit