ECONOMIC EVALUATION OF DEBT SUSTAINABILITY OF UKRAINE

Abstract

The importance of assessment of sustainability of public debt as the reflection of the country’s ability to fulfill its commitment as loans regards servicing and repaying is proved and the dynamics of public debt of Ukraine is analyzed herewith. It is also noted that in the recent years there is a tendency to increase the national debt due to high risks of currency loans and significant debt load on the state budget. The concept of national debt sustainability is clarified. The different scientific and methodological approaches to assessing debt sustainability of the country are studied. The state of the debt sustainability is analyzed within three groups of indicators: liquidity, solvency and indebtedness of the public sector. It is noted that the debt load in Ukraine is not very threaten-
ing, but further loans increase pressure on the state budget. It is proposed to reduce interest rates and to make effective exchange rate policies. The need for reducing the debt limit and establishing effective control over the repayment and servicing of external resources is brought herewith. It is noted that in order to improve debt sustainability the «targets method» should be applied.