Creating a Mechanism for Financing the Post-War Economic Revival of Ukraine

Abstract

ANNOTATION.This article is dedicated to the financial aspects of the post-war recovery of Ukrainian economy.The article considers the issues of choosing the main approaches to solving organizational problems of creating a mechanism for financing the costs of the Post-War Ukraines Economic Recovery Program.Recognizing the importance and complexity of measures to restore the countrys socio-economic infrastructure destroyed by the War, the author focuses on Post-War Recovery, which should not be reduced to restoring the pre-war level and structure of the economy, but will mean the creation of an essentially new Modern Economy that will provide Ukraine with a worthy place in the Global Economic system.Solving this problem will require a choice between centralized and decentralized systems for developing such development programs and mechanisms for their financing.The author argues that the most effective will be a combined option that will allow for taking into account national and regional interests in practice.The decision on the choice of financial institutions through which the post-war recovery program will be financed looks no less important.It is a question of choosing between existing institutions and the need to create new institutions specifically designed for such work.Having analyzed international experience, the author concludes that it is possible to create a tandem of the EBRD-UkrEximBank as the main financial institution of the Economic Renaissance Program.Although it would be more effective to create a special institution in a timely manner -the Bank for Economic Renaissance (BER).Unfortunately, it seems that the time to create such an institution has been lost in the process of many years of discussions around the Ukrainian Bank for Reconstruction and Development.The next important direction is the choice of funding sources, which, in the authors opinion, should include funds from Ukrainian and foreign participants.The Ukrainian part (at least 35 percent) will consist of funds from the state budget, enterprises and individuals.To a large extent, such funds should be accumulated through special loans, including "diaspora bonds".