PECULIARITIES OF DEBT POLICY AND DEBT SECURITY CRITERIA UNDER MILITARY AGGRESSION

Abstract

The article delves into Ukraine’s debt policy over the years 2013–2022, highlighting the critical condition of state debt which notably worsens during financial crises. Ukraine faced three such crises in the last decade alone, revealing that its financial system struggles to recover from these crises and stimulate economic growth. This situation underscores the necessity for reevaluating the priorities of the nation’s debt policy. The piece introduces a set of debt security indicators designed to assess the financial system’s capacity to manage its debt obligations. These indicators have been calculated and assessed against their threshold values.
Amidst ongoing military aggression and constrained budget revenues, securing financing for Ukraine’s recovery and reconstruction projects becomes a paramount state policy objective. This includes financing for the state budget through foreign loans and grant aid, aimed at restoring critical infrastructure, bolstering economic and energy sectors, among others. In the reconstruction context, the article discusses the mobilization of financial resources to swiftly revive Ukraine’s economy, leveraging a balanced approach to donor support and domestic borrowing. It highlights the significance of debt policy, particularly the use of military bonds as a major revenue source, demonstrating their effectiveness in the current fiscal landscape.