newsOn August 7, 2011, the Law of Ukraine “On amendments to the Budget Code of Ukraine and other legislative acts of Ukraine” dated July 7, 2011 N 3614-VI came into force.

According to accepted amendments, when municipality is receiving a loan, in case of the issuance of municipal guarantees, restrictions on the amount of a loan related to the development budget have been cancelled for the loans from IFIs.

In case of loan provided directly to the city, restrictions on the development budget are raised to 200% for all cities and 400% for Kyiv. Meaning that burden of the loan may not exceed 200% and 400% respectively (compared with 100% prior to the amendments). As you know, the previous Budget Code came into force in January 2011 and significantly complicated the possibility of cities to attract external funds for investment. Particularly, this made it impossible for most cities to initiate projects in the energy efficiency, modernization of heat supply systems, etc.