Debt Security of CEE Countries: Actual Approaches and Methods of Evaluation

The study is aimed at analyzing methods of country’s debt security evaluation, developing methodic approach towards estimating the level of debt security based on the calculation of the integral index, and assessing the level of debt security of CEE countries on the basis of the proposed approach. A method of calculating the integral debt security index of the country is developed, taking into account generally accepted thresholds of indebtedness and solvency indicators and the trend of countries’ increasing dependence on external borrowing. The proposed approach is practically tested in assessing the level of debt security of CEE countries. It is determined that the group of CEE countries is differentiated by the state of indebtedness and solvency. The highest level of debt security is demonstrated by Bulgaria, the Czech Republic and Estonia, the worst situation with the debt security is formed in Slovakia and Slovenia. Based on the analysis of the dynamics of integral debt security indices for 2007–2019, the grouping of CEE countries by the level and zones of debt security, the trends of deterioration of the region’s debt security in 2010–2015 and its improvement in 2016–2019 has been found out. The proposed approach is universal one; it can be used to calculate debt security indices and to provide comparative studies of the debt sector of any country or region. It can also help to identify weaknesses in country’s debt security that is critically important for reasoning the public policy measures to ensure a proper level of debt security.

Jurisdiction Regarding The Objective Rights Of Buyer Asset-Backed Securities In Secondary Housing Financing

Secondary housing financing is a facility that makes it easier for banks to liquidate their less liquid financial assets in the form of receivables arising from the distribution of Home Ownership Loans (KPR). This needs to be done to avoid mismatch funding. The title of this research is “Juridic Review On The Objective Rights Of The Buyer Of Asset-Backed Securities In Secondary Housing Financing”. The research was conducted to find out what are the material rights of asset-backed securities holders in housing secondary financing, how is the transition mechanism, what is the legal protection for asset-backed securities holders and whether national laws need to be adjusted to the concept of secondary housing finance. As for this writing, it can be concluded that the material rights attached to asset-backed securities in housing secondary financing owned by the buyer/holder of asset-backed securities include the right to receive payments, the right to transfer ownership of the asset-backed securities, the right to charge or make asset-backed securities as collateral for the settlement of debts from asset-backed securities holders, the right to obtain settlement of receivables due to mortgage rights on houses and land used as collateral for mortgages (KPR), the right to obtain disclosure of material facts, the right to obtain interest (for asset-backed securities that are debt), the right to Get Settlement of Receivables from the Issuer's Assets. Apart from that, it can also be concluded that the mechanism for the transfer of rights to the issuance of asset-backed securities in secondary housing financing generally consists of 4 phases, namely, among others, the emergence of receivables (receivables) through the distribution of housing loans, sales of receivables by original creditors to third parties. issuer, transfer of material rights in the form of receivables to investors with the issuance of asset-backed securities, transfer of asset-backed securities between one investor to another. Regarding legal protection for buyers/holders of asset-backed securities, it can be concluded that legal protection for buyers/holders of asset-backed securities in secondary mortgage financing is broadly divided into two, namely preventive legal protection and repressive legal protection. Preventive legal protection for holders of asset-backed securities in secondary housing financing lies in implementing the disclosure principle in capital market law, especially in secondary housing financing. Meanwhile, repressive legal protection for asset-backed securities holders consists of 2, namely, legal protection against unlawful acts and legal protection against default acts, both of which must go through a judicial process and cannot be carried out individually but can only be implemented by investment managers in If the asset-backed securities are in the form of securities (equity security)/unit of participation, while if the securities are debt security, the legal action must be carried out through a trustee.

Methodological Support for the Analysis of Debt Security in Agribusiness and Measures to Improve Its Level

The relevance of the study lies in the fact that in modern competitive environment for effective business management, the analysis of settlements, namely the state of accounts receivable and accounts payable, which are an integral part of monetary relations and play an important role for risk assessment of the impact on the development of agribusiness is important. The purpose of this study is to improve the methodological support for the analysis of debt security in agribusiness and measures to improve its level as an effective way to manage settlements. Methodological techniques for comparing indicators and ratio analysis techniques were used to analyse calculations. The approaches of scientists to organise the analysis of settlements and debt security assessment in agribusiness are summarised and two phases are highlighted: 1) providing analysis; 2) organising the analytical process. Provisions are determined for the organisation of settlements analysis in terms of tasks, objects, subjects, frequency and stages which include: analysis of structure and dynamics of settlements, analysis of turnover of accounts receivable and payable; analysis of quality of settlements and assessment of debt security. A model of settlement analysis methodology has been proposed with the separation of debt security assessment, accounting and evaluation based on an integral indicator which includes: debt load indicators, structure indicators, quality indicators, and turnover indicators. It has been found that the improvement of methodological support through the introduction of the debt security assessment methodology provides ample opportunities for a comprehensive analysis of agribusiness calculations, enables the identification of threats and is the result of a detailed analysis of calculations. A matrix of measures to improve debt security is considered. The practical value of scientific work lies in the introduction of methods of analysis of settlements with the assessment of debt security, which will control the status of settlements with counterparties, reduce the risk of non-repayment of receivables, determine the need for additional resources to cover accounts payable and contribute to risk reduction

ASSESSMENT OF THE LEVEL OF DEBT SECURITY OF UKRAINE AND DIRECTIONS FOR ITS STRENGTHENING

The article defines the essence of the concept of "debt security". The main indicators of Ukraine's debt security during 2015-2020 are analyzed and its condition is assessed using the integrated debt security index. The main factors that affect the level of debt security and key issues to ensure a sufficient level of debt security are investigated. It is found that the increase in the size of public debt leads to a reduction of the debt security and causes a number of negative consequences and distortions in the financial system of Ukraine. The main factors that affect the level of debt security and key issues to ensure a sufficient level of debt security are investigated. However, in the strategic perspective, deepening of the financial debt of the state leads to significant disparities in the financial and economic system of the country and increasing the debt burden on the state budget, increasing the threat of default, transferring the debt burden for future generations and increasing social tension in society. Ukraine's debt security is in critical condition and therefore requires the implementation of certain measures and changes. The main task is the effective management of state external and domestic debt and its gradual reduction. It is also necessary to focus more on domestic lending in national currency, as it is more profitable and cheaper to maintain for the state. In order to identify prerequisites for strengthening the debt security and searching the methods to reduce public debt, the development of an optimal strategy of borrowing, debt management and improving of a legal framework on issues of debt security has been suggested.

Challenges and Threats to the Debt Security of Central and Eastern European Countries

The study aims to identify the debt security weaknesses in the CEE countries and determine challenges and threats to the debt security of national economies and the CEE region. To achieve this goal, general and specific research methods have been used, including historical and logical methods, analysis and synthesis, structural and functional analysis, generalization and abstraction, a systematic approach, classification, and statistical methods. It is found out that the situation with debt security in the CEE region is quite controversial. The average external debt indicators of the CEE countries are in the unsafe zone, while the average solvency is at a relatively safe level. The analysis of external indebtedness and solvency indicators shows that the CEE group is highly heterogeneous regarding the level of countries’ debt security. Despite some improvement in the debt security of CEE economies during 2017–2019, the prospects for the development of the debt situation are rather vague. It is due to the growing impact of external challenges and threats to the debt security of the region, including the deterioration of the global economic environment and global recession, increase in credit risks and contraction in the international lending, global economic and political imbalances, and policy divergence, growing government spending on solving problems caused by the COVID-19 and corresponding pressure on public budgets, the general growth of global debt. Given the high heterogeneity of CEE countries in terms of current debt security, the manifestation of global challenges in each national economy can be rather diverse.

Obligāciju veidu un civiltiesiskās apgrozības attīstība

A bond is a debt security, under which its issuer undertakes to repay to the bondholder the principal of the bond and the interest (the coupon) at a specified point in time, that is to be considered as the extinguishing of bonds. There are several types of bonds: bonds issued by the public sector, bonds issued by capital companies, publicly available bonds, private bonds, convertible bonds, subordinated bonds, etc. Several forms of bonds – bonds of materialized and dematerialized form – are also present. Bonds, their types, emission, purchase, acquisition of ownership, circulation on the secondary market and extinguishing of bonds have been developing since the origins of bond. This necessitates an understanding of the changes in the basic characteristics of bonds and their civil circulation.

The Ambiguity of Resi Gudang (Warehouse Receipt) Guarantee Institution Legal Standing

Farmers usually use warehouse receipts to obtain debt with commodity objects stored in the warehouse as a debt security. Warehouse receipts as valuable objects, of course, have the potential to be tied up in a debt bond that serves as a security for these debts. However, for an item of guarantee, the legal aspects are quite diverse. For objects to be used as collateral in a credit agreement, they must meet certain conditions, namely, economic value and transferability. Therefore, it is necessary to conduct a study of warehouse receipts to be used as collateral objects, given the characteristics of warehouse receipts as valuable objects and the property rights attached to the warehouse receipts. This research is normative research with a statutory approach. The result of this research is that warehouse receipts can be used as collateral objects but with some adjustments. And based on the existing regulations, it is understood that the warehouse receipt arrangement does not create a warehouse receipt guarantee institution.Keywords: Resi Gudang, Debt, Collateral

Debt Component of Ensuring the Sustainability of Public Finances in Ukraine: The Status and Trends

The article is aimed at evaluating the State debt and the State-guaranteed debt as components of ensuring the sustainability of Ukraine's public finances, identifying trends and factors that determine debt security and affect the pace of development of the country's economy. The article discloses the indicators of measuring the sustainability of public finances; indicators of effectiveness of the policy of ensuring the sustainability of Public Finances of Ukraine until 2030 are presented; the role and importance of debt security in ensuring the sustainability of public finances is determined. A factor analysis of the State debt and the State-guaranteed debt is carried out on the main grounds – the average US dollar exchange rate per year, GDP, revenues and expenditures of the State budget – in order to identify trends in changes in its structure and volumes for the period 2016-2020. The main financial risks and the degree of their impact on debt security are defined, a forecast of the State debt and the State-guaranteed debt of Ukraine for the medium term for 2021-2023 has been developed using the polynomial trend. The likelihood of a worsening the debt situation in Ukraine by 2023 and, as a result, a deterioration in the resilience of public finances due to the unfolding of the coronavirus pandemic, which can be equated with the crises of 2008-2009 and 2014-2015, is proved. Proposals to improve Ukraine's debt security in the context of the coronavirus pandemic have been substantiated. Prospect for further research in this direction is to prove the need to make managerial decisions to ensure the sustainability of public finances, taking into account not only macroeconomic, but also political and institutional factors, the impact of which increases significantly in the context of democracy.