{"id":17862,"date":"2022-12-08T20:21:22","date_gmt":"2022-12-08T18:21:22","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=17862"},"modified":"2022-12-08T20:28:39","modified_gmt":"2022-12-08T18:28:39","slug":"domestic-government-bonds-as-a","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/domestic-government-bonds-as-a\/","title":{"rendered":"Fedevych L., Lyvdar M. Domestic government bonds as a tool for investment and support of the economy of Ukraine"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification<\/strong>: H63<\/em>
\n<\/span><\/td>\n		DOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V35(2022)-21<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]Fedevych Liudmyla, <\/strong>PhD (Economics), docent Department of Finance, National University \u00abLviv Polytechnic\u00bb, Lviv, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0002-3097-7467<\/a>
\ne-mail: <\/strong>liudmyla.s.fedevych@lpnu.ua<\/a><\/p>\n

Lyvdar Marta, <\/strong>PhD (Economics), docent Department of Finance, National University \u00abLviv Polytechnic\u00bb, Lviv, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0003-1925-7781<\/a>
\ne-mail: <\/strong>marta.v.lyvdar@lpnu.ua<\/a><\/p>\n

 <\/p>\n

Domestic Government Bonds as a Tool for Investment and Support of the Economy of Ukraine<\/strong><\/h2>\n

\u00a0\u00a0<\/strong><\/p>\n

Abstract. Introduction<\/strong>. This article examines the domestic state loan bond market in Ukraine, taking into account the pandemic and the war with Russia. The deficit state of Ukraine’s budget necessitates attracting additional funds to finance growing expenses. The government securities market is an important component of the country’s financial system. The Ukrainian government most often issues bonds of the domestic state loan (OVDP), in their essence, these debt securities are an important tool of fiscal policy. Circulation of bonds in Ukraine is carried out exclusively in electronic form. The largest volumes of issuance of debt securities were recorded in 2014 and since 2019 till 2021 years. These years were a crisis for Ukraine, and the need for additional resources is justified. The work analyzed that the main buyers on the OVDP market are banking institutions and non-residents, while individuals do not have sufficient knowledge about the possibility of investing in debt securities.<\/p>\n

Purpose.<\/strong> The purpose of the article is to study trends in the volume of OVDP issuance on the stock market of Ukraine during 2013-2022, as well as directions for the use of withdrawn funds. If we talk about investing in foreign currency, the article examines that it is more profitable to invest in OVDP, rather than depositing, especially the high yield of bonds denominated in US dollars.<\/p>\n

Results.<\/strong> The authors analyzed and demonstrated the size of the issue of OVDP on the primary market and directions of use of funds from this placement. An important economic phenomenon during the issuance of a currency OVDP is the strengthening of the national monetary unit – the hryvnia. In this way, the government can influence the stability of the national currency. However, when the bond matures, there is a reverse effect, which is why it is important to take this into account and to facilitate the maturity of debt securities to coincide with a period when foreign exchange resources are flowing into the country in a larger volume than usual.<\/p>\n

Conclusions.<\/strong> Conclusions were made that for the state OVDP is a significant source of financing for state budget expenditures. It is noted that domestic state loan bonds play an essential role in the development of the economy as a whole because the funds received from their issue are used to cover the budget deficit, finance investment, and social projects.<\/p>\n

Keywords:<\/strong> domestic government bonds; state budget deficit; yield; investors in domestic government bonds; bond issue.<\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Matvijchuk, N. M., Tesljuk, S. A., & Borychevsjka, I. Gh. (2021). Bankivsjki depozyty ta OVDP jak aljternatyvni ob’jekty vkladennja koshtiv [Bank deposits and IGLBs as alternative objects of investment]. Economy and Society<\/em>, 25. Retrieved from : https:\/\/economyandsociety.in.ua\/index.php\/journal\/article\/view\/294 [in Ukrainian].<\/li>\n
  2. Zhytar, M. O., Bjelin, V. S., & Olishhuk, O. Gh. (2020). Aktyvizacija rynku oblighacij vnutrishnjoji derzhavnoji pozyky jak instrumenty vplyvu na ekonomiku Ukrajiny [Activation of the market of domestic government bonds as instruments of influence on the economy of Ukraine]. Economy and State.<\/em> 67-71 [in Ukrainian].<\/li>\n
  3. Jakusheva, I. Je. (2021). Rynok oblighacij v Ukrajini : stan, tendenciji i perspektyvy rozvytku [Bond market in Ukraine : status, trends and prospects]. Effective economy<\/em> 4. Retrieved from : http:\/\/www.economy.nayka.com.ua\/pdf\/4_2021\/102.pdf [in Ukrainian].<\/li>\n
  4. Filimonova, O. B., & Taranenko, Ja. O. (2021). Monetarni naslidky kolyvannja dokhidnosti OVDP [Monetary consequences of fluctuations in the yield of IGLBs]. Effective Economics<\/em>. 2. Retrieved from : http:\/\/www.economy.nayka.com.ua\/pdf\/2_2021\/106.pdf [in Ukrainian].<\/li>\n
  5. Lubkej, N. P. (2016). Derzhavni cinni papery jak instrument borghovoji polityky derzhavy [Government securities as an instrument of government debt policy]. Global and national economic problems<\/em> 4. 824-828 [in Ukrainian].<\/li>\n
  6. Tarasjuk, M. V., & Timoshenko, N.M. (2018). Stan i perspektyvy rozvytku instrumentariju rynku derzhavnykh cinnykh paperiv v Ukrajini [Status and prospects of development of government securities market instruments in Ukraine]. Economic problems<\/em>. 4. 271-277 [in Ukrainian].<\/li>\n
  7. Ukrainian Finance and Investment Portal : Ministry of Finance Media (2022). Oblighaciji vnutrishnjoji derzhavnoji pozyky [Domestic government bonds], Ukrainian Finance and Investment Portal “Ministry of Finance Media”. Retrieved from : \u00a0https:\/\/index.minfin.com.ua [in Ukrainian].<\/li>\n
  8. Official site of the National Bank of Ukraine. Statystychni dani [Statistics]. Official site of the National Bank of Ukraine. Retrieved from : https:\/\/bank.gov.ua\/ [in Ukrainian].<\/li>\n
  9. Official site of the Ministry of Finance of Ukraine. Derzhavnyj borgh ta gharantovanyj derzhavoju borgh [Public debt and state-guaranteed debt]. Official site of the Ministry of Finance of Ukraine. Retrieved from : https:\/\/mof.gov.ua\/uk\/derzhavnij-borg-ta-garantovanij-derzhavju-borg [in Ukrainian].<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received:<\/strong> 20 October 2022<\/p>\n

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    Fedevych L., Lyvdar M. (2022). Domestic government bonds as a tool for investment and support of the economy of Ukraine. Modern Economics, 35(2022), 136-140. DOI: https:\/\/doi.org\/10.31521\/modecon.V35(2022)-21.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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    [vc_row][vc_column][vc_column_text] JEL Classification: H63 DOI: https:\/\/doi.org\/10.31521\/modecon.V35(2022)-21 [\/vc_column_text][vc_column_text]Fedevych Liudmyla, PhD (Economics), docent Department of Finance, National University \u00abLviv Polytechnic\u00bb, Lviv, Ukraine ORCID ID: 0000-0002-3097-7467 e-mail: liudmyla.s.fedevych@lpnu.ua Lyvdar Marta, PhD (Economics), docent Department of Finance, National University \u00abLviv Polytechnic\u00bb, Lviv, Ukraine ORCID ID: 0000-0003-1925-7781 e-mail: marta.v.lyvdar@lpnu.ua   Domestic Government Bonds as a Tool for Investment and Support
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