THE THEMATIC DEBT MARKET IN SUPPORT OF SUSTAINABLE DEVELOPMENT OF RURAL AREAS – OPPORTUNITIES AND CHALLENGES
DOI:
https://doi.org/10.35120/kij6001017dKeywords:
rural areas, sustainable finance, green bonds, social bonds, sustainability bonds, SLBsAbstract
Despite the extraordinary diversity of rural areas on a global scale, they are administrative and geographical areas where agricultural production dominates and contributes to food security, as well as where vital ecosystems function. Industrial revolutions and socio-economic processes led to the reduction of the population in rural areas as a whole and even to their depopulation in certain regions of the world, while causing environmental pollution and disruption of biodiversity. In many countries, the agenda is to develop strategies and to take measures to preserve, revive and develop rural areas, to attract young people and ensure employment, for prosperity and transition to an economic, social and environmental sustainability.
In this article, the possibilities of using the so-called thematic bonds for financing the sustainable development of rural areas. More specifically, the following tasks are set to be solved in it.
First, to present the current problems and challenges facing rural areas.
Second, to examine the traditional instruments used in individual countries to finance rural areas, including those aimed at sustainable development.
And third, to analyze the thematic bond market in the context of their use to finance the transition to sustainability in rural areas.
The article argues and proves that despite some problems and challenges, green and social bonds, sustainability bonds and sustainability-related bonds can be used both as a tool for direct and indirect financing of agriculture sector and rural areas in general.
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