Korolenko R. V., PhD (Economics), Senior Lecturer, Kryvyi Rih National University, Kryvyi Rih, Ukraine

ORCID ID: 0000-0003-2346-335
e-mail: flamingo1606@gmail.com

Potapchuk A. V., applicant of higher education of the Faculty of Economics and Business Administration, Kryvyi Rih National University, Kryvyi Rih, Ukraine

e-mail: alena.potapchuk.98@gmail.com

State Debt of Ukraine: Essence and Governance

Abstract. Introduction. The difficult economic situation, observed in Ukraine, is characterized by problems of a socioeconomic nature, a high level of growth of the state’s obligations to domestic and foreign creditors and low level of debt security. Therefore, the problem of public debt management is one of the most acute problems of public administration in Ukraine, which requires qualitative analysis and the formation of effective ways of its solution.

Purpose. The purpose of the article is to investigate the theoretical aspects and the current state of public debt, its dynamics and structure, as well as to propose perspective directions of government debt management.

Results. After analyzing all debt ratios in Ukraine, it was found that they have a steady growth trend, except for guaranteed internal debt. Thus, the state and state guaranteed debt of Ukraine in 2017 compared to 2016 increased by 211.91 billion UAH, and compared to 3 by 2015 by 569.91 billion UAH. The expenditures of the state budget for repayment and servicing of the state debt in 2017 amounted to UAH 474 billion, which is UAH 266,8 billion more than in 2016. Therefore, the risks of an increase in future debt payments are compounded by depreciation of the hryvnia and the further implementation of government borrowings to repay debt.

Conclusions. The promising directions of the state policy on public debt management are to ensure transparency of the use of borrowed funds, increase the investment attractiveness of the domestic economy, balance the costs and revenues of the state and local budgets, search and justify alternative ways of raising funds to finance certain items of the state budget and develop an effective method for determining the debt security of the state.

Keywords: state debt; guaranteed debt; methods of managing public debt; debt service; the ratio of public debt to GDP.

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