scholarly journals DEBT SECURITY AS AN INDICATOR OF THE FINANCIAL MARKET DEVELOPMENT OF UKRAINE

2021 ◽  
Author(s):  
Mariia Aleksandrova ◽  
Vita Dovgaliuk ◽  
Klym Fursov
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Management System ◽  
Negative Impact ◽  
The State ◽  
Debt Management ◽  
Management Policy ◽  
The Public ◽  
Debt Security ◽  
Public Debt Management

The article reveals the essence of state debt security and examines the threats to state debt security in the context of minimizing their negative impact and increasing the efficiency of the public debt management system. In determining the essence of state debt security and the study of threats to state debt security in the context of minimizing their negative impact and improving the efficiency of public debt management system, it was determined that debt security is the basis of economic sovereignty, resilience of its financial system to internal and external threats and implementation socio-economic strategy of sustainable development. The study is devoted to identifying the features of the current system of debt security in Ukraine and a set of threats to the growth of debt security in the country. One of the financial instruments of the national economy is loans from international financial organizations, which have a targeted strategic direction of innovation. These borrowings contribute to long-term economic growth. It is the inefficient management of such debt that leads to the disruption of the economic system, in particular to its imbalance and increase its vulnerability to factors of negative foreign economic influence. Therefore, the strategic goal of reducing the threat of negative impact on debt security is to determine the optimal policy for managing both external and internal debt of the state. Again, debt management policy is a condition for the stability and efficiency of the state economy. As a result of the study, the main reasons for the deterioration of Ukraine’s debt security can be identified, in particular: a complex political crisis, military conflict, deep economic recession, the existence of obligations to meet the state’s needs in natural gas and pensions, lack of sufficient political will to reform and apply unpopular measures to stabilize the economic situation. Coordinating the public debt management mechanism with Ukraine’s financial stabilization strategy will provide an opportunity to analyze the financial threats facing Ukraine in the global crisis and develop a common framework for all bodies, public authorities, which represent the external debt of Ukraine. When appropriate measures are taken, public debt coverage will be carried out mainly not by increasing the tax burden, but by economic growth. After studying the state of Ukraine’s debt security, conclusions were drawn on its increase by stabilizing the national currency, optimizing the structure of budget expenditures, stimulating the state domestic market, directing external borrowing to implement investment development programs and developing a promising debt strategy.

scholarly journals The public debt of Ukraine as a particular factor of the state security

2019 ◽  
pp. 204-212
Author(s):  
Oksana Cheberyako ◽  
Oksana Hnatiuk
Keyword(s):  
Public Debt ◽  
The State ◽  
Theory And Practice ◽  
Debt Management ◽  
Economic Research ◽  
Scientific Presentation ◽  
The Public ◽  
Debt Security ◽  
Public Debt Management ◽  
Theoretical Foundations

Relevance of research topic. The constant growth of Ukraine's public debt requires effective management of it. The larger the amount of debt, the harder it is to serve the state, so this topic is especially relevant in the context of those economic situations in which Ukraine has been during the recent years of the hybrid war with Russia and the protracted financial crisis. Formulation of the problem. The social and economic significance of public debt is increasing every year, because it is linked to the country's debt security, which affects the budget capacity of the state. The problem is the search of ways to improve the mechanism of public debt management in the direction of strengthening Ukraine's debt security, which since independence has been living at the expense of IMF loans. Analysis of recent research and publications. The theoretical foundations of state debt and debt security, methodological approaches to its evaluation, the formation of a mechanism for providing debt security and its management were highlighted in the works of O. Baranovsky, D. Boyko, Z. Varnaliy, V. Kozyuk, M. Kubai, O. Cheberyako and other scientists. Selection of unexplored parts of the general problem. Despite the rather deep theoretical study of the issue of debt security of the state, it should be noted that there is a need for its further study taking into account the specifics of the national economic situation and the strategic course of Ukraine on European integration. Setting the task, the purpose of the study. The purpose of the article is to study the state of debt security in Ukraine by analyzing the dynamics of public debt and developing recommendations for raising the level of debt security of the country. A specific goal has necessitated the following tasks: to study the theoretical foundations of state debt and debt security; to analyze the dynamics of changes in the state debt of Ukraine and the state of national debt security; to determine the problems of management of the state debt, which resulted in the existing state of debt security in Ukraine; to propose of ways to optimize public debt to strengthen debt security. Method or methodology for conducting research. During the research historical, analytical-empirical, inductive-deductive, comparative research methods were used to implement the principle of objectivity of scientific presentation, as well as in the determination of the debt condition of Ukraine, tools of economic-mathematical modeling and graphical presentation of research results were used. Presentation of the main material (results of work). The work is disclosed the theoretical foundations of the state debt, shows his place in economic research and the influence on the debt security of the state. The condition of the state debt of Ukraine is analyzed. The features and rationale for strengthening the debt security of Ukraine through the prism of improving the mechanism for managing and servicing the public debt are disclosed. The field of application of results. The results of the study can be used in the theory and practice of public debt management. The assessment of debt indicators and their analysis will be an expedient source of information for developing ways to strengthen Ukraine's debt security. Conclusions according to the article. One of the main components of financial security is debt security. The role of its decisive component - public debt - determines the priority of public debt management and its servicing, which is an important condition for the stability of the financial system of the state and security. Debt security of Ukraine is in an unsatisfactory state, for improvement it is necessary to improve the debt policy of the state and debt management.

scholarly journals FACTORS OF GROWTH OF THE EFFICIENCY OF PUBLIC DEBT MANAGEMENT

2021 ◽  
pp. 5-11
Author(s):  
M. E. Kosov
Keyword(s):  
Public Debt ◽  
Financial Management ◽  
The State ◽  
Debt Management ◽  
Macroeconomic Factors ◽  
The Public ◽  
Correlation And Regression Analysis ◽  
Public Financial Management ◽  
Public Debt Management ◽  
Debt Policy

Public debt is an integral part of public finances of various countries, the process of its management, including formation, maintenance and repayment has a powerful impact on the macroeconomic system of the state. The subject of the study is the public debt of the Russian Federation. The article performs a correlation and regression analysis of factors that have a direct impact on the state of the Russia’s public debt under the conditions of the restrictions caused by the Covid-19 coronavirus infection, as well as the consequences of these restrictions. The paper proposes an econometric model that describes a system of indirect macroeconomic factors that are not directly related to the state’s debt policy, but show the strongest influence on the formation of public debt in modern realities and increase the efficiency of its management, as well as reflect the quality of public financial management in general. The author concludes that the demographic burden and the indicator reflecting the ratio of the budget deficit to the total budget revenue have the greatest impact on the effectiveness of public debt management.

scholarly journals Public debt of Ukraine and its influence on main socio-economic indicators

2020 ◽  
pp. 5-10
Author(s):  
Sergii Stepanenko
Keyword(s):  
Economic Development ◽  
Public Debt ◽  
The State ◽  
Debt Management ◽  
Economic Indicators ◽  
The Public ◽  
Goods And Services ◽  
Socio Economic Development ◽  
Debt Dynamics ◽  
Public Debt Management

Introduction. Solving the problem of public debt management is one of the key factors of economic stability in the country. The budget capacity of the state and the stability of its national currency largely depend on the nature of the debt problem settlement. The need to address these issues requires finding ways to improve the mechanism of public debt management and servicing in Ukraine. The purpose of the article is to study the public debt dynamics of Ukraine and model the nature of its impact on key socio-economic indicators in modern conditions. Results. The dynamics and structure of the state and state-guaranteed debt of Ukraine for the period 2013-2019 are analyzed. The negative dynamics of the growth of the total amount of debt during 2014-2018 is determined. In 2019, the total amount of debt in hryvnia decreased due to the reduction of external and guaranteed debt, but in dollar terms increased, which threatens the financial stability of the country. Using the software product EViews 10 based on the Granger causality test, the system of causal relationships between the dynamics of public debt (index) and indicators of socio-economic development: GDP growth rate, industrial production index, real income index, employment index, the index of exports of goods and services, the index of imports of goods and services has been researched. On the basis of the established causal relations the autoregressive influence models of the public debt dynamics on indicators of social and economic development are constructed, on which the error does not exceed 5%. Conclusions. According to the results of the constructed models, the negative impact of public debt on the main socio-economic indicators is determined, which is confirmed by the negative values of the elasticity indexes of socio-economic indicators. The built models serve as a preventive tool of public debt management, with the help of which it is possible to promptly respond to threats to socio-economic development by monitoring the level of public debt dynamics. Key words: public debt, public debt management, socio-economic development, financial security of the state.

scholarly journals Debt strategies of European countries and vectors of implementation of best experience in the practice of external public debt management of Ukraine

2021 ◽  
pp. 58-68
Author(s):  
Ivanna Moroz
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Financial Stability ◽  
Negative Impact ◽  
Developed Countries ◽  
Economic Security ◽  
Debt Management ◽  
European Countries ◽  
Public Debt Management ◽  
Debt Policy

The policy of external and domestic public debt management in different countries has its own specifics, and its results are not always unambiguous. Thus, the existing recommendations of the International Monetary Fund and the Maastricht criteria prove that the maximum value of public debt to GDP should be no more than 60 %. Exceeding this limit can lead to a deterioration in financial stability, debt sustainability, and ultimately to a technical default of the state. However, the practice of public debt management in many developed countries shows quite opposite trends, as a significant excess of the Maastricht criterion not only does not lead to default, but on the contrary allows countries to accumulate the necessary financial resources to ensure stable economic growth. Therefore, the study of European debt strategies and their effectiveness is a very important issue, especially given the consequences of the COVID-19 pandemic for developing countries. Given the growing external debt dependence of Ukraine as a result of both the war with the Russian Federation and the COVID-19 pandemic, the search for a better experience of European debt policy and consideration of ways to adapt it to domestic realities are discussed in our article. Based on the analysis of the debt policy of European countries, the expediency of using debt rules, aimed at regulating both the country's debt security and the effectiveness of the use of public borrowing to stimulate economic growth has been proved. Cluster analysis of debt strategies of some European countries has shown that the high level of dependence on external public debt has a negative impact on economic security in general, because in the event of deteriorating macroeconomic situation, the likelihood of foreign investors selling government securities increases, and in the case of external loans from international financial and credit organizations – the risks of negative impact of burdensome non-financial obligations on the national economy grow.

scholarly journals EXTERNAL GOVERNMENT DEBT MANAGEMENT OF UKRAINE IN CONDITIONS OF SOCIAL AND ECONOMIC AND PANDEMIC SHOCKS

2021 ◽  
pp. 48-63
Author(s):  
Ivanna MOROZ
Keyword(s):  
Economic Development ◽  
Public Debt ◽  
The State ◽  
Debt Management ◽  
Management Policy ◽  
State Budget ◽  
Strategic Goals ◽  
Public Debt Management ◽  
The Cost ◽  
Debt Policy

Introduction. The consequences of the COVID-19 pandemic on macroeconomic dynamics and the state of external public debt are analised. The main reasons for the growth of the State Budget deficit of Ukraine are identified and the need to increase the efficiency of the external public debt management policy in the context of minimizing the budget deficit is proved. Emphasis is placed on the situational and imbalance of Ukraine’s external public debt management policy, which is due to the lack of the Economic Development Strategy of Ukraine and the Government’s program of activities for 2020. It is substantiated that the lack of clear strategic goals of economic development of the state and adherence to such a strategy has led to an increase in the cost of servicing external pu blic debt, increasing the cost of attracting it and reducing the maturity. It is also proved that the lack of strategy together with the low level of fiscal, debt and monetary policy coherence are the main reasons for inefficient conversion of external public debt, as the main amounts of external government borrowing are not used to finance economic development, but to finance state budget expenditures and to repay old debts. The purpose of to the article is to study the theoretical and practical aspects of debt policy in the context of the COVID-19 pandemic in order to justify a new paradigm of Ukraine’s external public debt management policy. Results. Based on the analysis of major macroeconomic trends in Ukraine and identifying external debt problems, the latest paradigm of external public debt management policy is proposed, the essence of which is to subordinate debt policy to tactical and strategic goals of the national economy budget, debt and monetary policy, as well as in achieving effective conversion of external government borrowing to stimulate economic development. It is proposed to use a program-targeted method of external public debt management policy, which involves raising funds from international organizations exclusively to finance specific government programs. Perspectives. It is necessary to increase the efficiency of conversion of external government loans to finance capital investments from the State budget, which will use the foreign debt potential to stimulate Ukraine’s economic development.

scholarly journals Peculiarities of public debt management policy in the United States of America: experience for Ukraine

ScienceRise ◽  
2021 ◽  
pp. 58-67
Author(s):  
Ivanna Moroz
Keyword(s):  
United States ◽  
Economic Growth ◽  
Economic Development ◽  
Public Debt ◽  
United States Of America ◽  
External Debt ◽  
The United States ◽  
The State ◽  
Debt Management ◽  
Public Debt Management

The object of research is the policy of public debt management of the United States of America and Ukraine. The problem solved is the low level of efficiency of the policy of public external and internal debt management of Ukraine in the context of financing economic growth. The main scientific results: based on the analysis of the policy of public debt management of the United States of America, it has been proved, that the public debt and the US budget deficit should be perceived not as a problem or threat to macroeconomic stability, but as a tool to stimulate economic growth. It is substantiated, that in order to optimize the policy of internal and external public debt management of Ukraine it is expedient to introduce a debt rule, which is based on the program-targeted method of attracting public debt and provides for the use of public borrowing exclusively to finance economic development programs. In this case, Ukraine, following the example of the United States, will be able to achieve sustainable economic growth, because changing the priorities from debt financing of current state budget expenditures to financing capital expenditures will allow the Ukrainian government to develop economic infrastructure, create conditions for high value-added goods and to develop small and medium business, which will ultimately ensure macroeconomic stability and progressive economic development of the state. The scope of practical use of research results. The results of the study can be used by the Cabinet of Ministers of Ukraine, and in particular by the Ministry of Finance during the formation of the Medium-Term public debt management strategy of Ukraine. Innovative technological product: The debt rule is based on the program-target method of attraction and use of the state internal and external debt that allows to use effectively the state borrowings for financing of economic growth. Scope of application of an innovative technological product: Policy of management of the state internal and external debt of Ukraine

IMPACT OF GOVERNMENT DEBT ON FINANCIAL SECURITY OF UKRAINE

2017 ◽  
Author(s):  
Olena Pikaliuk ◽  
◽  
Dmitry Kovalenko ◽  
Keyword(s):  
Economic Development ◽  
Public Debt ◽  
Positive Impact ◽  
The State ◽  
Financial Security ◽  
State Budget ◽  
The Public ◽  
Debt Security ◽  
The Stability ◽  
The Impact

One of the main criteria for economic development is the size of the public debt and its dynamics. The article considers the impact of public debt on the financial security of Ukraine. The views of scientists on the essence of public debt and financial security of the state are substantiated. An analysis of the dynamics and structure of public debt of Ukraine for 2014-2019. It is proved that one of the main criteria for economic development is the size of public debt and its dynamics. State budget deficit, attracting and using loans to cover it have led to the formation and significant growth of public debt in Ukraine. The volume of public debt indicates an increase in the debt security of the state, which is a component of financial security. Therefore, the issue of the impact of public debt on the financial security of Ukraine is becoming increasingly relevant. The constant growth and large amounts of debt make it necessary to study it, which will have a positive impact on economic processes that will ensure the stability of the financial system and enhance its security.

scholarly journals Role of Governance in Debt-Growth Relationship: Evidence from Panel Data Estimations

2021 ◽  
Vol 13 (11) ◽  
pp. 5954
Author(s):  
Qamar Abbas ◽  
Li Junqing ◽  
Muhammad Ramzan ◽  
Sumbal Fatima
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Negative Impact ◽  
Positive Impact ◽  
Linear Pattern ◽  
The Public ◽  
Mediating Role ◽  
National Output ◽  
State Governance

This paper provides an empirical analysis of the relationship between debt and national output mediated by a measure of the quality of state governance. Using WGIs dataset of 106 countries for the period 1996–2015, the paper analyzes the mediated effect of governance on debt-growth relationship. For this purpose, we use the fixed effect (LSDV) and system GMM estimation technique in order to overcome the possible problem of endogeneity. Results show the non-linear pattern between public debt and economic growth via governance. Although, public debt has negative impact on economic growth, but the results are statistically positive and significant when public debt is interacted with governance, which confirms that governance is a channel by which public debt influences economic growth. Moreover, we calculate the threshold of governance which shows that the public debt has positive impact on economic growth when the governance level is higher than the threshold and adversely affects the economic growth in the case of low level of governance than threshold. Evidence from this study reveals the fact that governance plays a mediating role in debt-growth relationship as there is a pattern of complementarity between public debt and governance: the higher the level of governance, the lesser the adverse effect of public debt on economic growth.

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