The Role of International Lending and the Activities of International Financial Organizations in the World and in Ukraine
Savchenko M. V., Kuzmynskyi Y. D., Yanishevskyi B. S.

Savchenko, Maryna V., Kuzmynskyi, Yevhenii D., and Yanishevskyi, Bohdan S. (2023) “The Role of International Lending and the Activities of International Financial Organizations in the World and in Ukraine.” The Problems of Economy 3:271–281.
https://doi.org/10.32983/2222-0712-2023-3-271-281

Section: Finance and banking

UDC 339.9:061.1(043.5)

Abstract:
The theoretical and methodological basis of the research is the work of domestic and foreign scientists. The results were obtained due to the application of a system of methods: the method of logical analysis made it possible to develop the logic of the research; generalization and synthesis - to form a chronology of IMF cooperation with the domestic national economy; methods of structural and economic-statistical analysis were used to assess the current state of cooperation between the countries of the world and international financial organizations. The graphic method made it possible to visualize the obtained research results. The article is devoted to a detailed study of the role of international lending and the activities of international financial organizations in the countries of the world and Ukraine. An overview of the existing IMF lending mechanisms was carried out and the dynamics of the lending structure of the world's countries under these mechanisms was studied. It has been proven that the most used lending mechanism is the "Stand-by" loan mechanism (SBA), which is designed to help solve short-term balance of payment problems. An analytical review of the largest IMF borrowers of the geographic structure of the fund's financial support to the countries of the world was carried out. An in-depth analysis of financial flows to low- and middle-income countries in 2018-2022 led to the conclusion that the net inflow of debt for 2018-2022 grew by 9% annually, which increases the dependence of these countries on international financial organizations. Within the framework of Ukraine's cooperation with international financial organizations, the country's interaction with the IMF, the World Bank, and the EBRD was investigated. The authors created a chronology of the development of cooperation between Ukraine and the IMF. The assessment of the current state of cooperation between Ukraine and the IMF confirmed the intensity of these relations recently, both in terms of the number of loans granted and their volume. As a result of almost thirty years of cooperation, Ukraine received loans in the amount of 35 billion dollars. The result of Ukraine's cooperation with another largest creditor - the World Bank - was studied. During 28 years of cooperation, the World Bank offered Ukraine funds totaling more than 7.94 billion dollars. The purpose of granting loans by the World Bank and the EBRD is the sustainable and comprehensive recovery of the economy of Ukraine as a whole, and of certain industries in particular. The issue of cooperation with international financial organizations is especially relevant today in view of the limited financial resources and the gradual entry of our country into the stage of peak payments for foreign debt.

Keywords: international financial organizations, cooperation, economic relations, international loans, lending mechanisms, IMF, World Bank, EBRD.

Fig.: 11. Tabl.: 1. Bibl.: 24.

Savchenko Maryna V. – Doctor of Sciences (Economics), Associate Professor, Head of the Department, Department of International Economic Relations, Vasyl’ Stus Donetsk National University (21 600-richchia Str., Vinnytsia, 21021, Ukraine)
Email: m_savchenko@donnu.edu.ua
Kuzmynskyi Yevhenii D. – Student, Vasyl’ Stus Donetsk National University (21 600-richchia Str., Vinnytsia, 21021, Ukraine)
Email: kuzmynskyi.i@donnu.edu.ua
Yanishevskyi Bohdan S. – Student, Vasyl’ Stus Donetsk National University (21 600-richchia Str., Vinnytsia, 21021, Ukraine)
Email: ianishevskyi.b@donnu.edu.ua

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