Specific features of Ukraine’s public debt management in conditions of war

Authors

  • Mykhailo Trofimchuk Academician Stepan Demianchuk International University of Economics and Humanities
  • Oleksandr Trofimchuk Rivne State University of the Humanities

DOI:

https://doi.org/10.35774/visnyk2023.03.204

Keywords:

debt management, government debt, government bonds, borrowings, guaranteed debt

Abstract

Introduction. The debt policy of the state is essential for ensuring economic sustainability and development of the country. Effective public debt management helps to prevent crises and ensure financial stability, and gives the government more leverage to respond to economic challenges, which is especially important for the Ukrainian economy that is operating in a war time.

Purpose. The purpose of the article is to study the peculiarities of public debt management, directly in the context of war, based on a comprehensive analysis of the debt policy instruments used by Ukraine’s government in the current circumstances.

Methods. The analysis of cause and effect relationships was used to identify the features that determine the debt policy of our country in the conditions of war. Methods of economic and statistical analysis, such as dynamic analysis, structural analysis, comparison and correlation, were used to analyze and evaluate the main trends related to the public debt management in Ukraine.

Results. The article examines the impact of the main factors that have impact on the formation of the state’s debt policy and, accordingly, determine the peculiarities of public debt management in modern conditions. The tendency of Ukraine’s debt obligations growth in the period of 2022-2023 is revealed. It is established that in the structure of debt, external public borrowings prevail over internal ones. It is found that the main debt instrument in the domestic market is government bonds, and in the external market - loans received from international financial organizations. The author substantiates the expediency of using specific instruments in the process of public debt management at the current stage of functioning of the Ukrainian economy, as well as in the post-war period, based on international experience.

Prospects for further research include the need to develop an effective strategy for managing public debt in the postwar period in order to create favorable conditions for the reconstruction of the country and further sustainable economic growth.

Author Biographies

  • Mykhailo Trofimchuk, Academician Stepan Demianchuk International University of Economics and Humanities
    PhD (Economics), Associate Professor Department of Management
  • Oleksandr Trofimchuk, Rivne State University of the Humanities
    PhD (Economics), Associate Professor, Department of Economics and Business Management

References

Abbas, S. Ali, Alex Pienkowski, and Kenneth Rogoff (2019). Sovereign debt: A guide for economists and practitioners. Oxford University Press [in English].

Trofimchuk, M. O. (2022). Otsinka vplyvu viiny na vitchyznianu ekonomiku ta podalshi perspektyvy rozvytku finansovo ekonomichnykh protsesiv v Ukraini [Assessment of the impact of the war on the national economy and further prospects for the development of financial and economic processes in Ukraine]. Ekonomika ta derzhava - Economy and state,6, 60-64 [in Ukrainian].

Makroekonomichni pokaznyky (2022) [Macroeconomic indicators]. Natsionalnyi Bank Ukrainy – National Bank of Ukraine. Retrieved from https://bank.gov.ua/ua/ statistic/macro-indicators#4 [in Ukrainian].

Derzhavnyi veb-portal biudzhetu dlia hromadian (2023) [State budget web portal for citizens]. Ministerstvo finansiv Ukrainy – Ministry of Finance of Ukraine. Retrieved from https://openbudget.gov.ua [in Ukrainian].

Derzhavnyi borh ta harantovanyi derzhavoiu borh (2023) [Public debt and publicly guaranteed debt]. Ministerstvo finansiv Ukrainy – Ministry of Finance of Ukraine. Retrieved from https://mof.gov.ua/uk/derzhavnij-borg-ta-garantovanij-derzhavju- borg [in Ukrainian].

Biudzhet 2022 roku (2022) [Budget 2022]. Ministerstvo finansiv Ukrainy – Ministry of Finance of Ukraine. Retrieved from https://mof.gov.ua/uk/budget_2022-538 [in Ukrainian].

Zamkova, Н., Hnydiuk, I. (2022). Derzhavnyi borh Ukrainy za masshtabnoi kryzy. [Public debt of Ukraine during a large-scale crisis]. Scientia Fructuosa (Visnyk Kyivskoho natsionalnoho torhovelno-ekonomichnoho universytetu) – Scientia Fructuosa (Bulletin of Kyiv National University of Trade and Economics), 144 (4), 110-121 [in Ukrainian].

Finansovi rynky (2022) [Financial markets]. Natsionalnyi Bank Ukrainy – National Bank of Ukraine. Retrieved from https://bank.gov.ua/files/4-Financial_markets.xlsx [in Ukrainian].

Petrukha, N., Petrukha, S., Miakota, M., Krupelnytska, L.,Tarasenko, M. (2023). Upravlinnia derzhavnym borhom v krainakh Yevropeiskoho Soiuzu: uroky dlia Ukrainy [Public Debt Management in the European Union: Lessons for Ukraine]. Inkliuziia i suspilstvo – Inclusion and Society, 1, 24-35 [in English].

Cecchetti S. G., Mohanty M. S., Zampolli F. (2011). The real effects of debt. BIS Working Papers. No. 352. Retrieved from https:// www.bis.org/publ/othp16.pdf [in English].

Borhova statystyka. (2023) [Debt statistics]. Ministerstvo finansiv Ukrainy – Ministry of Finance of Ukraine. Retrieved from https://mof.gov.ua/uk/borgovi-pokazniki-st [in Ukrainian].

Cinzia, A., Daniel, G. (2019). Public debt and the risk premium: A dangerous doom loop. EconPol Opinion. 2019. Vol. 21. Retrieved from https://www.econpol.eu/ opinion_21 [in English].

Blanchard, O., Zettelmeyer J. (2022). The Italian Budget: A Case of Contractionary Fiscal Expansion. PIIE. Retrieved from https://www.piie.com/blogs/realtime- economic-issues-watch/italian-budget-case-contractionary-fiscal-expansion [in English].

Guidelines for Public Debt Managament (2000). IMF. Retrieved from https://www. imf.org/external/np/mae/pdebt/2000/eng/index.htm#III [in English].

Kudriashchov, V. (2022). Stratehichni zasady upravlinnia derzhavnym borhom [Strategic principles of public debt management]. Finansy. Podatky. Kredyt – Finance. Taxes. Credit. Retrieved from http://economyukr.org.ua/docs/EU_22_09_058_ uk.pdf [in Ukrainian].

Knir, M. O., Plieshakova, N. A., Plieshakova, O. A., Kryvoruchko, Ya. V. (2019). Zarubizhnyi dosvid upravlinnia zovnishnim derzhavnym borhom i perspektyvy yoho implementatsii v Ukraini [Foreign experienc]. Biznes Inform, 12, 70-75.

Published

2023-11-07

How to Cite

Trofimchuk, Mykhailo, and Oleksandr Trofimchuk. “Specific Features of Ukraine’s Public Debt Management in Conditions of War”. Herald of Economics, no. 3, Nov. 2023, pp. 198-11, https://doi.org/10.35774/visnyk2023.03.204.

Similar Articles

21-30 of 248

You may also start an advanced similarity search for this article.