Issuing bonds abroad can become the most effective tool for external borrowing for regions - O. Matskevich

March 1, Vitebsk / Diana Kurilo - BELTA /. Decree No. 75 "On External Borrowings of Local Government and Self-Government Bodies" expands the powers of regional executive committees to attract foreign investment. This point of view was expressed in a conversation with a BELTA correspondent by Oleg Matskevich, Deputy Chairman of the Vitebsk Regional Executive Committee. In his opinion, the most effective tool for external borrowing could be the issuance and placement of bonds of local executive and administrative bodies abroad. Since they, unlike loans from foreign banks, allow planning both the cost level for the issuer and the income level for the buyer, while not requiring collateral. However, this requires the functioning of a secondary securities market. Oleg Matskevich is confident that Decree No. 75 will "spur" the development of this market. For the Vitebsk region, external borrowing could bring the greatest effect when invested in the modernization of agricultural processing enterprises, which account for 85% of the region's exports. Given the geographical location of the region, investments in the development of transport and logistics infrastructure are justified. -0-