Financially-legal regulation of basic public debt management in the conditions of coronavirus pandemic

This article is devoted to the consideration of some issues related to the legal regulation of the main methods of public debt management in Russia in the context of the coronavirus pandemic. In the course of the study, the features of the external and internal debt of the Russian Federation are highlighted, various approaches to the definition of this category are considered, and some aspects of legal regulation in this area are analyzed. It is determined that the norms of financial law regulate a whole and diverse set of public relations related to the implementation of borrowing both in the domestic and foreign markets, and it is necessary to comprehensively regulate this institution. In conclusion, it is concluded that the coronavirus pandemic has greatly affected all aspects of financial activity, the state had to resort to additional borrowing on the domestic market to eliminate the consequences of the pandemic. Based on this, we need a well-thought-out strategy for the development of legislation in this area at all levels of the budget system of the Russian Federation.

Priorities of public debt policy and security of the national economy

The article examines the content of public debt policy as an object of economic security in terms of methodological and practical aspects based on the assessment of debt sustainability using a system of indicators. The authors raise the issue of the need to develop a public debt management mechanism, to search for new strategies and tools, including by strengthening the functional role of international financial institutions.

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

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.

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

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

Public Debt Management and The Country’s Financial Stability

The government debt portfolio is usually the largest financial portfolio in the country. It often contains complex and risky financial structures and can generate significant risk to the state budget and the country’s financial stability. Therefore, governments are required to have sound risk management and sound public debt structures to limit exposure to market risk, debt financing or rolling risk, liquidity risk, credit, settlement and operational risk. In recent years, the debt market crises have highlighted the importance of sound public debt management practices and related risks, and the need for an effective and well-developed domestic capital market. This may reduce the vulnerability of the economy to adverse economic and financial shocks. However, it is also important for the government to maintain a macroeconomic policy that ensures sound fiscal and monetary management. The aim of the research is to present the theoretical and practical aspects of extremely important issues such as public debt management and to indicate the most important implications for the financial stability of the country on the example of the Polish economy. The study uses a research method based on literature studies in the field of macroeconomics, economic policy and finance, as well as statistical analysis of the studied phenomenon. Results of research indicate that effective public debt management can reduce the economy’s vulnerability to financial threats, contribute to the financial stability of the country, maintain debt stability and protect the government’s reputation among investors.