Y. Bunyk, PhD student Taras Shevchenko National University of Kyiv, Kyiv ROLE OF DIASPORA BONDS IN DEVELOPING COUNTRIES

The article deals with the problem of the bond issue for the Diaspora as a source of financing of the national economy and a factor of development. We reveal the following factors driving demand in the diaspora bond market: targeting at a project, channels, audience and marketing. The paper shows international experience to attract migrants’ savings and use them to issue bonds. Investors consider diaspora bonds because: firstly, people who have disposable income, who can commit that income or that excess income to a long term investment should look at diaspora bonds: secondly, people who really want to participate in transforming the home country should look at diaspora bond specifically diaspora bonds related to projects: and last but not least, if there are incentives around diaspora bonds for example whether there’s tax incentive and other kinds of incentive, that also should be taken into account. Also we disclosed the possibility of using this type of securities in Ukraine and its expedience.
Keywords: remittances; migration capital; Diaspora bonds; savings of migrants.

DOI: http://dx.doi.org/10.17721/1728-2667.2015/173-8/10

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