Transnational Lending Structure: Ukrainian Case

Emerging markets require capital inflows and are sensitive to any outflows. Implementing structural reforms in the economy, the government and regulators in Ukraine face this dilemma and always need to balance the interests of capitalism’s "invisible hand" and sustainable growth of institutional development. The convertibility of capital accounts remains a critical issue before the Ukrainian economy graduates to "market status" under the laws of its major trading partners.

Overall, the Ukrainian government and parliament have been acting act on the premise that the emerging market in Ukraine is attractive enough per se, being geographically close to the EU, having rich mineral resources, relatively inexpensive and skilled labor, good transit opportunities, etc. The regulatory regime for foreign investment emphasizes the procedural side; the laws and regulations related to foreign investment are inclined to stress governmental control rather than guarantees and compensation to