Rating agency IBI-Rating informs on the affirmation of the rating of investment attractiveness of Cherkassy city at invВВВ+ grade (sufficient investment attractiveness).
The determined rating of investment attractiveness of Cherkassy city is due to its importance as a regional center. The convenient geographic location, natural and climatic conditions, as well as industrial potential, which provide additional opportunities for investors, are constrained by environmental challenges, infrastructural problems, in particular, obsolete engineering and transport networks, housing and municipal facilities, etc. At present, some of these facilities are under modernization and reconstruction, including with the participation of international financial institutions.
Actions on enhancement of management culture in the city and in terms of improvement of the investment climate, along with the coordination of the local authorities at solving key issues of the city life, create certain potential for growth of economic development indicators in a number of economic sectors. However, these opportunities are constrained by the lack of essential tools for providing benefits to investors, as well as the lack of a strategy of building relationships between the authorities and investors.
Cherkassy city is inherent in high indicators of social and economic development, some of which exceed the average indicators for Ukraine per capita (industrial output sold, retail trade turnover). The level of foreign investors activity in the city is not high and is accompanied by a decline in foreign direct investment. The city is inherent in good provision with establishments of health care, education and culture, availability of all key transport infrastructure. Income population indicators are below the average income in the country. A decrease in population has been observed, which is due to migration for employment, as well as natural reduction of the available population. Instead consecutive year that the volume of mastered capital investments, which in the first half of 2016 compared to the same period in 2015 increased by 2 times and amounted to 728.9 million. UAH.
A positive impact on the rating may have, as follows: improvement of the regulatory framework and successful implementation of the basic programs of the city development, an increase of most indicators of the social and economic development to the state level, improvement of the infrastructure state. A negative impact on the rating may have, as follows: further depreciation of the infrastructure, detection of complaints from investors on the activities of the local authorities, decline of the city development indicators, reduction of investment volumes.
In order to perform the analytical research the materials obtained from Cherkassy city were used, including: indicators of social and economic development, materials of statistical bulletins; annual treasury statements, program materials, other necessary internal information, as well as the information from the public sources, which the Rating agency considers reliable.