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Study urges Ukraine to ease municipal borrowing rules to unlock reconstruction investment

Kyiv City Council. Photo: Olya Tsimbal / Wikimedia Commons, CC BY-SA 4.0

Ukraine could unlock a new source of reconstruction financing by easing restrictions on municipal bonds and introducing guarantees to attract domestic investors, according to an academic study.

The country's centralised borrowing rules prevent local governments from fully using domestic capital markets to finance infrastructure, the study argues. It proposes replacing mandatory Ministry of Finance approval of local borrowing with a simplified procedure for financially sound municipalities.

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