DECISION ON THE PROVISION OF LOCAL GUARANTEES: ISSUES OF CONTENT AND PROCEDURE FOR ADOPTION

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DECISION ON THE PROVISION OF LOCAL GUARANTEES: ISSUES OF CONTENT AND PROCEDURE FOR ADOPTION

Journal Title: «Приватне та публічне право» - Year 2018, Vol 3, Issue

Abstract

In the article the results of the analysis of issues of legal regulation of the procedure for the adoption by the city councils and the Verkhovna Rada of the Autonomous Republic of Crimea of the decision on the provision of the local guarantee and a number of proposals for the improvement of the budget legislation are proposed. The main stages of the decision-making process for providing a local guarantee are as follows: 1) initiation of the process of obtaining loans (loans) and making a preliminary decision; 2) Approval of the forecast of the local budget for the next two planned budget periods; 3) drafting a decision on the provision of a local guarantee; 4) preparation and approval of the conclusion of the Council of Ministers of the Autonomous Republic of Crimea or the executive body of the city council regarding the expediency of attracting a loan (loan) under a guarantee for the implementation (realization) of the investment project; 5) the approval by the Ministry of Finance of the amount and conditions for attracting a loan (loan) under a local guarantee for the implementation (realization) of the investment project; 6) preparation of the draft decision on the local budget; 7) consideration and approval of the decision on the local budget or amendments thereto, which contain provisions on the limit of local guarantees; 8) consideration and decision on the provision of a local guarantee; 9) signing of an agreement on repayment of the debtor's debt to the ARC or the territorial community of the city; 10) signature of the decision on the provision of local guarantee; 11) promulgation of a decision on the provision of a local guarantee; 12) signing of a loan agreement; 13) signing the guarantee agreement; 14) registration of local guarantee. The main requirements of the legislation concerning the contents of the decision on the provision of a local guarantee, the subject of regulation of which are the conditions and authority for the conclusion of three types of contracts: 1) a loan agreement, according to which the borrower is a communal enterprise (entity of the communal sector of the economy); 2) an agreement on repayment of the debtor's debt to the ARC or the territorial community of the city; 3) local guarantee agreement. Public relations on the signing of such contracts fall under the regulation of both the rules of private law and the rules of public, primarily financial law. The basic stages of the decision-making process, as well as the signing of a local guarantee agreement, are determined. It is clarified that the legislation of Ukraine does not provide for violations of these stages, each of which occurs in turn. However, despite the importance of the local guarantee institution and the fact that, as a result of their provision, the territorial communities assume risks and bear the responsibility for non-repayment of the obligations guaranteed by the municipal authorities of the communal sector of the economy, the state of legal regulation of the said sphere of public relations is unsatisfactory.

Authors and Affiliations

І. В. Буряк

Keywords

EP ID EP592389
DOI -
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