Problemi Ekonomiki (Jun 2021)
The Impact of the COVID-19 Pandemic on the IGLBs Market in Ukraine: State, Problems, and Development Perspectives
Abstract
The article aims at analyzing the Ukrainian market of domestic government bonds (IGLBs) in the context of the COVID-19 pandemic; determining its state, problems and development perspectives. The development of the domestic government bonds market during the coronavirus crisis is considered; the essence and purpose of IGLBs in Ukraine are revealed; IGLBs are classified by type of use. The differences between domestic and external government bonds are determined, and the advantages of the former are indicated; peculiarities of purchasing such securities by individuals and legal entities are revealed; requirements for issuing IGLBs by issuers are indicated, and the most reliable banks engaged in this activity are enumerated; the state of the government bond market during 2018–2020 is studied; the amount of ownership, the share of buyers of securities and the purpose of their purchase for each of the entities are given; the rate and yield of domestic government bonds in Ukraine are analyzed and compared with other countries, such as the United States, Germany, France and others. The study identifies the following problems: the economic crisis caused by the COVID-19 pandemic, the inadequate legal framework on IGLBs, the low level of public awareness of these securities, and others. To overcome these problems, the following actions are suggested: counteracting the coronavirus crisis by combining the efforts of the state and local authorities, business, and the population; directing most of the financial resources in this direction; spreading economic education among the population; introducing a simplified procedure for purchasing IGLBs; and working with banks to increase the availability of bonds purchasing. Statistical data obtained from the official website of the National Bank of Ukraine make up the basis for the study.
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