THE UNEFFICIENT DEBT POLICY OF THE COUNTRY AS ONE OF THE KEY FACTORS OF DECREASING THE FINANCIAL SECURITY OF THE STATE

Abstract

One of the most important indicators, that characterizing the activity country is its financial security. The more country depends on its creditors, than higher is impact of debt policy on socio-economic situation in general. It is unreasonable debt policy and the high costs of servicing the public debt and its repayment often lead to financial crises. Analyzing the debt policy of Ukraine, we can see that the amount of debt is growing every year, and it happens quite rapidly. Thus, in 2015 the volume of debt rose by almost 50%, and next year - another 17.3%.

It is important not only to assess the status and dynamics of public debt. Its influence on the situation within the state determines the efficiency of the debt policy. GDP is a key macroeconomic indicator. Analyzing its dynamics, we can judge about the state and trends of the whole economy. Comparing growth rates of GDP and total debt of Ukraine can be said that the second growing much faster. We can say that the increase of debt had no significant effect on growth of capital investments and expenditures for scientific research. As a result, it does not allow producing additional financial resources that can be used to repay of debt in the future.

The consequence of all this is that at the beginning of 2017 was reached a critical point for a number of indicators characterizing the level of financial security in the country, including the ratio of government debt to GDP and payable on government debt to every citizen of Ukraine is over 1500 USD.