PROBLEMS OF ENSURING DEBT SUSTAINABILITY OF UKRAINE

Abstract

The article examines the problems that stand in the way of ensuring Ukraine's debt security. In fact, these problems are the factors of its formation. Adherence to scientifically based debt security limits allows to ensure the debt sustainability of the state. The purpose of the article is to deepen certain theoretical aspects of the problem of ensuring debt sustainability of Ukraine in modern conditions, highlighting directions for its improvement. The article outlines the relevance of the research topic, which consists in the strengthening of Ukraine's debt problems against the background of an unfavorable macroeconomic and political situation. These problems have a negative impact on the country's debt sustainability. The article examines the channels of formation of the state debt of Ukraine, and the state debt itself is defined as the totality of all financial obligations assumed by the state in order to attract deficit budget funds. It has been established that in Ukraine there is a steady tendency to increase the state debt with the predominance of the debt formed at the expense of loans on the foreign market. The consequences of debt financing of the deficit of the State Budget of Ukraine are in the area of ensuring Ukraine's debt security. In this context, the indicator of the ratio of the total public debt to the GDP of Ukraine was analyzed, which demonstrates an excess of justified limits. This situation leads to deterioration of the general economic situation of the country and its debt position. In the current conditions, it is not considered possible to avoid borrowing, which is why ensuring debt sustainability is in the realm of quality management of public debt and restructuring of previously accumulated state debts. The main problems caused by the increase in public debt in the context of the impact on debt sustainability are defined as: a high level of the threat of declaring the country bankrupt and, accordingly, default; high cost of foreign loans and credits; possible further significant pressure and influence of international organizations to make the necessary decisions, even if they are against national interests. To increase the level of debt sustainability, it is necessary to take a number of measures to manage the state debt and reach agreements with creditors in the direction of restructuring part of the state debt.