The EU-LEAP Analytical Center is implementing the project "Development of the Municipal Bond Market in Ukraine: Analysis of Regulation, Practice, and Potential for Community Recovery"

with the support of the "Askold and Dir" Fund, administered by ISAR Ednannia within the framework of the project "Strong Civil Society of Ukraine – A Driver of Reforms and Democracy," funded by Norway and Sweden.

Municipal bonds can become one of the financial instruments for the recovery and development of territorial communities. They allow local self-government bodies to raise funds on the capital market for the implementation of infrastructure, social, and other projects of local significance.

At the same time, in Ukraine this instrument remains underdeveloped. Despite the decentralization reform and the expansion of financial autonomy of communities, municipal bonds are still used to a limited extent, and since 2022 no new issuances of local government bonds have effectively taken place.

Within the framework of the project, the EU-LEAP team analyzes the current legislation and regulatory environment in the field of local borrowing, the practice of issuing local government bonds in Ukraine, the financial capacity of communities to use this instrument, as well as international experience in the development of the municipal bond market.

The outcome of the project will be practical analytical findings and recommendations for state authorities, regulators, and local self-government bodies regarding possible approaches to the development of the municipal bond market in Ukraine.

The goal of the project is to build an analytical foundation for the use of municipal bonds as one of the instruments for financing community recovery, strengthening their financial capacity, and reducing dependence on grant and centralized financing.

The content of this publication is the responsibility of the EU-LEAP Analytical Center and does not reflect the views of the governments of Norway, Sweden, or ISAR Ednannia.

ISAR Ednannia.

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