THE WORLD EXPERIENCE OF EXTERNAL STATE DEBT MANAGEMENT

Abstract

The article deals with the main aspects of the formation of external debt in the world and the reasons for its emergence, the source of external debt growth and the mechanism for regulating the amount of external debt. It has been established that the management and servicing of public debt is one of the most important tasks of the state's financial policy and an important condition for the stability of its financial system. Effective debt management provides an opportunity to avoid crisis debt situations and helps to ensure the stabilization of the socio-economic situation and the development of the state's economy. The size of the debt obligations indicates the state of the economy and finances of the state and the efficiency of the functioning of its government structures. The statistical materials, which reflect the current state of external debt and its dynamics in recent years, are presented. The present state of external debt of countries, which occupy the leading positions in the world in terms of the size of external debt, is analyzed, but despite this, borrowing resources are quite efficiently used. The influence of external indebtedness on the economic growth of states and the tools they use to avoid a debt crisis are examined. The attraction of external loans has a stimulating effect on the development of the economy. It should be noted that the full refusal of debt countries from external state borrowing is impossible, since there is a need to maintain and repay the previously taken debt obligations, maintain a balance of payments balance, and store and accumulate foreign exchange reserves that are the source of financing for economic growth. The tools to prevent a debt crisis are intended to encourage the borrower to use qualitatively borrowed money resources and not consider the default as a solution to the situation. Most of the world's leading countries use borrowed money resources, but at the same time they effectively manage external debt, which allows to enure economic growth. The world experience of effective foreign debt management and the main tools used in this research are explored.