The External Government Borrowings in the Strategy of Financial Stabilization of Ukraine

Abstract

The article is aimed at developing a mechanism for harmonizing the external government borrowings and the use of such borrowings with the strategy of financial stabilization of Ukraine. The concept of financial stability is disclosed and the status of Ukraine’s financial system is described. The current status and dynamics of government borrowings are researched. The institutional-legal provision of the financial stability of Ukraine is analyzed, specially analyzed are: activities of the Financial Stability Board in the management of external public debt; the medium-term public debt management strategy and the reform strategy of public finance; other institutions and regulations governing the management of external public debt in the process of financial stabilization of Ukraine’s economy. The dynamics of Ukraine’s total public debt and the GDP of Ukraine from 2009 to 2019, the structure of public and the State-guaranteed debt are analyzed according to data by the Ministry of Finance of Ukraine. The public and the State-guaranteed debt of Ukraine in 2019 is researched. It is proved that the analysis of Ukraine’s external debt structure provides an opportunity to analyze the financial threats that Ukraine faces in the context of global crisis. Prospect for further research in this direction is the construction of an econometric model that will demonstrate the extent of the influence of various components of the State’s financial system, including the external government borrowings, on financial stability.

Keywords

• public debt
• strategy
• crediting
• banking system
• management
• financial stability