Problems of financing reconstruction of buildings and constructions after the war in Ukraine

Issue: № 11/3, 2022

Doi: https://doi.org/10.37634/efp.2022.11(3).5

The need for extensive reconstruction of buildings and structures will become one of the most important social problems after the war. Existing traditional financing mechanisms will not be able to solve it in the near future. Therefore, the issue of financing the reproduction of buildings and structures on the territory of Ukraine needs an immediate solution, taking into account all possibilities and modern trends in the development of the financial and public sectors. In view of the above, the study reveals the main trends in the development of the construction market during the crisis and during the war, and defines the main prospects and directions of development. Among them, the reproduction of buildings and structures after the war is recognized as key. Since the beginning of the military invasion, there has been a great need for major repairs of existing residential buildings. The indicated issue is critical for certain segments of the population and carries a certain social threat. Financing problems cannot be overcome at the expense of construction companies today. The construction market turned out to be quite sensitive to various crises and disasters. Currently, the market has low rates of profitability, which excludes capital investments with a long payback period. Therefore, there is a need to create an adapted financing mechanism for the reproduction of buildings and structures, which will allow balancing time gaps. It will create an opportunity to attract additional financing at the beginning of investments by construction companies of Ukraine. The following recommendations can be made to improve the efficiency of the repair policy: the introduction of population fees for capital repairs, budget financing of targeted programs for housing repair, sponsorship, use of crowdfunding and international and national fundraising platforms, joint investment institutes, credit unions, etc. The proposed approaches will make it possible to reproduce buildings and structures, and eliminate the acute social need of the population.

Keywords : reproduction, construction, reproduction financing, buildings, structures, reproduction financing mechanism

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