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IBI-Rating has affirmed the rating of investment attractiveness of Ternopol city at invВВВ

03.12.2015
IBI-Rating informs on the affirmation of the rating of investment attractiveness of Ternopil city at invВВВ grade (sufficient investment attractiveness).

The affirmed rating of investment attractiveness of Ternopol city is due to its significance as a regional center. The convenient geographical location, natural and climatic conditions given the existing loyal environmental legislation as well as the absence of significant environmental problems, create additional opportunities for investors. Results of the elections held in Ternopol city demonstrated support for the actions of the local authorities by the city residents.

The implementation of measures aimed at improving of the management culture in the city and investment climate in the city, as well as the coordination of the local authorities in addressing the key issues of the city life, create a considerable potential for growth of economic performance indicators in some sectors of the economy. However, these opportunities are constrained by the infrastructural problems related with the deterioration of most facilities, some of which are planned to be upgraded in the perspective. In the I half of 2015, as compared with the previous year, the activity of foreign investors in the city as in the whole country, continued to slow down, which was accompanied by outflows of foreign direct investments. In its turn, the volumes of the assimilated capital investments and sales of industrial products, including for export, continued to increase.

At the same time, the volume of investment per capita is slightly lower than the national average, and the volume of foreign investment is significantly inferior to the national average. Given the low tax burden on the local budget, the opportunities for the city to participate in the implementation of major investment projects are limited by the development of financial institutions and the lack of significant leverage of granting benefits to investors. Nevertheless, the city has a positive experience of cooperation with the international financial institutions, and meets its debt obligations in a timely manner.

The city is inherent in good provision with health care, education and cultural establishments, and also there are objects that belong to the historical and cultural heritage. There is a potential to increase the number of the city residents due to an inflow of people from regions as well as a positive natural increase in population.

A positive impact on the rating may have as follows: the improved regulatory framework and successful implementation of the basic programmes of the city development, growth of most of the indicators of social and economic development to the national average level, the improved state of the infrastructure. A negative impact on the rating may have as follows: further deterioration of the infrastructure, identified complaints from investors on the activities of the local authorities, decline in performance indicators of enterprises and reduction of the volume of investments.

In order to carry out the analytical research the materials received from Ternopol city were used, including the annual Treasury statements for the I half of 2015, indicators of social and economic development and the city's budget for the I half of 2015, other necessary internal information as well as the information from the open sources, which the Rating agency considers reliable.

Department of municipal ratings area
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua