EFFECTIVNESS OF UKRAINE DEBT POLICY IN THE CONTEXT OF STRENGTHENING THE FINANCIAL SECURITY OF THE STATE

Abstract

The article devoted to the problem of financial security, as manifested in the government debt management of Ukraine. Investigated that the efficiency of debt management is influenced by such factors as stability of the national economy, the financial stability of the state, development of the government debt securities, the amount of ongoing maintenance payments and repayment of public debt. Analyzed the basic indicators that allow to evaluate the effectiveness of the debt policy such as the ratio of budget deficit to GDP, the share of foreign capital in the authorized capital of banks, payments on servicing and repayment of public debt. Investigated that the debt policy of Ukraine for 2010-2015 years caused only to an increase in public debt, which have a  bad affect to the economy and create huge debt burden on the budget and population. Every year are growing spending on maintenance and debt repayment, and increases the budget deficit, which is mostly financed by internal borrowing. Most of the debt is in foreign currency, and must payed today, it is because Ukraine will have to pay almost 2 times that only aggravate the debt burden on the national economy. Therefore, an urgent need to implement measures which in the future will reduce state debt and the effective use of borrowed funds. The National Bank of Ukraine should formulate a clear and effective policy to establish and support the exchange rate of the currency. It is necessary  to direct funds from international financial institutions to improve the economic situation in the country and not to repay previously received government debt and cover the budget deficit.