Rating agency IBI-Rating informs on the affirmation of the rating of investment attractiveness of Cherkasy city at invВВВ+ grade (sufficient investment attractiveness).
The affirmed rating of investment attractiveness of Cherkasy city is due to its importance as a regional center. The favorable 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.
The implementation of measures to increase the level of management culture in the city and to improve the investment climate, along with the coordination of actions of representatives of the local authorities in solving key issues of the city life, create potential for further growth of indicators of economic development in a number of sectors of the economy. 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.
Cherkasy 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, fiscal capacity). The activity of foreign investors in the city is not high. In 2017 volume of direct foreign investments incrised by 6.4% to USD 106.0 million. The volume of mastered capital investments incrised by 28.8% % to UAH 2 348.1 million.
The city is inherent in good provision with establishments of health care, education and culture, the availability of the entire key transport infrastructure. The income indicators of the population are below the national average. There is a decrease in the existing population, which is due to labor migration and natural reduction.
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 conduct the analytical research the materials obtained from Cherkasy city have been 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.