Summary

Ukraine has huge investment needs in physical infrastructure. Many of the required investments concern physical assets owned and operated by Ukrainian Sub-National Governments (SNGs) or Communal Services Enterprises (CSEs). These entities will need to attract loan and bond funds and direct private investments to finance their large infrastructure rehabilitation and development investment needs over the next fifteen years. The domestic sub-national debt market presents the most promising vehicle for SNG borrowing, but at present this market remains highly under-developed. This Technical Note examines the key impediments to the development of the sub-national debt market in Ukraine, identifies key policy reforms to address these impediments, and proposes a detailed plan of action to implement these reforms over the short, medium and long-term.

The full text of the Technical Note: “Developing the Domestic Sub-National Debt Market in Ukraine: Key Challenges and Proposed Action Plan”