LONG-TERM PORTFOLIO INVESTMENT IN THE FORMATION OF THE FINANCIAL ARCHITECTURE OF UKRAINE’S RECOVERY
DOI:
https://doi.org/10.32782/inclusive_economics.13-10Keywords:
long-term investment, portfolio investment, capital market, domestic government bonds, institutional investors, municipal bonds, sustainable finance, economic recoveryAbstract
The article substantiates the role of long-term portfolio investment in the financial architecture of Ukraine’s recovery. The relevance of the topic is determined by the need to combine budgetary resources, international assistance, bank lending and domestic long-term capital in order to finance reconstruction, infrastructure renewal, business modernisation and sustainable economic growth. The purpose of the article is to clarify the economic role of long-term portfolio investment and to justify directions for transforming Ukraine’s debt-centred capital market into a more diversified system of recovery finance. The study uses generalisation, comparative analysis, structural diagnostics and dynamic analysis of capital market indicators for 2017–2026. The results show that domestic government bonds have become the most institutionally mature and liquid segment of Ukraine’s portfolio market. Their volume increased from about UAH 0.75 trillion in 2017 to more than UAH 2.00 trillion in 2026. At the same time, the dominance of government securities does not mean the formation of a complete long-term investment architecture, because corporate bonds, municipal instruments, collective investment institutions, pension funds and sustainable finance instruments remain insufficiently linked to recovery projects. The article argues that the key task is not to reduce the role of domestic government bonds, but to use them as a reference point for building a broader structure of investment instruments. The proposed approach includes targeted recovery bonds, co-guaranteed corporate bonds, municipal and infrastructure issues, individual investment accounts, stronger pension savings, transparent disclosure rules and sustainable finance standards aligned with European principles. The results may be used by public authorities, financial regulators, institutional investors and researchers in developing policies aimed at mobilising domestic savings and transforming them into long-term capital for Ukraine’s recovery. They also provide a framework for assessing which financial instruments should perform stabilisation, development, institutional and sustainable functions in a recovery-oriented capital market.
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