Ukraine should improve the legislation for the access of the municipalities to the external debt markets and reduce the costs of these borrowings, Nikolai Burmaka, State Commission on Securities and Stock Market member, said on the conference, devoted to the development of municipal debt market.
In particular, Mr. Burmaka said that it is necessary to make an amendment to the current legislation on the securities market allowing the municipalities to issue bonds not only in national currency, but also in foreign ones. As for now the municipalities have to issue by 2-step procedure: first, they get syndicated loan from the foreign banks and then the banks syndicate issue loan participation notes.
Burmaka also expressed his belief that the city population size limit for the cities willing to borrow abroad also should be lowered. As for today, the limit is set at 800 000 people and thus only 5-6 municipalities are allowed to issue eurobonds.
