Local borrowings in the system of fiscal support of urban development

Abstract

A purpose of the paper is to research development and the current state of the local borrowings in the system of fiscal support of social and economic development of Ukrainian cities. The author has determined a total amount of the local borrowings in 2003-2015 and indicated the main tendencies of the change of the local borrowings amount. The author has done cluster analysis of local councils of Ukraine, which borrowed funds, taking into account the following criteria: a) a sample for clustering – 38 local councils; b) a set of characteristics selected for estimation of objects (a borrowing amount, a number of borrowings, an average interest rate for borrowed funds, an average term of a loan); c) the Ward’s method with the normed value of Euclidean distances. The author has formed five clusters and determined peculiarities of each of them.