Kruhliakova Vira, Candidate of Economic Sciences, Associate Professor of the Department of Financial Management, Ivan Franko National University of Lviv, Lviv, Ukraine

ORCID ID: 0000-0002-0688-8704
e-mail: vira.krugliakova@gmail.com

Zakhidna Oksana, Candidate of Economic Sciences, Docent, Associate Professor of the Department of Financial Management, Ivan Franko National University of Lviv, Lviv, Ukraine

ORCID ID: 0000-0003-4964-3472
e-mail: oksana.zaxidna@gmail.com

Kovalchuk Yulia, Student of higher education of the first (bachelor) level, Faculty of financial management and business, Ivan Franko National University of Lviv, Lviv, Ukraine

ORCID ID: 0000-0002-4403-7409
e-mail: kovalcukula6@gmail.com

Public debt of Ukraine at the present stage

Abstract. Introduction. The problem of public debt management is one of the main problems in Ukraine. Public debt has a significant impact on the financial system, the state of the economy in the country investment climate, national currency stability. The rapid growth in volumes of a gross external debt and in ratio to GDP increases the currency risks of the country. That’s why public structures must form and implement a clear process of public debt management.

Purpose. The main purposes of the article are to investigate the theoretical aspects the management of the external state debt in Ukraine, to analysis of the current state of public debt, to identify the main problems the management of the external state debt and search for ways to improve it.

Results. It was researched that the growth of the state debt and expends of its servicing are gaining in Ukraine. It was determined that the structure of public debt is dominated by external debt. Also Ukraine is characterized by large amounts of state-guaranteed debt, which involve additional costs due to the insolvency of borrowers. Ukraine has excessive debt burden mainly through external borrowing. During the study period, the maximum amount of public debt has long exceeded the norms approved by the Budget Code, although in the last two years there has been a stabilization. Therefore, a range of debt management actions have been proposed that can alleviate the problem of over-indebtedness in Ukraine and mitigate the risks associated with a distorted debt structure. As such, debt policy of a government must be based on gradual repayment of debt in foreign currency, optimization of state expenditures, improvement of the system of the national debt, refinement of the conditions by which governments service their debt, etc. Thus the government’s debt policy should be based on an improved legal framework for regulating public debt; public debt restructuring; rational and targeted use of loans. In addition, the country should introduce strict control over the spending of funds, ensuring the political and economic development of Ukraine and take incentives to intensify the stock market.

Keywords: state debt; public debt management; debt service; loan; debt policy.

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