Features of External Government Debt of Ukraine in the Current Conditions

Abstract

Today, the external debt tends to grow, and the full-scale war with the Russian Federation in 2022 introduces many forced changes in the regulation and management of external government debt in Ukraine, along with changes in external and internal factors that affect the economy of Ukraine, its diplomatic relations with other states, and consequently the external government debt, so this study is of great relevance. The purpose of the study is to consider the external debt of Ukraine and its features. To identify the main problems that arise in the regulation of public relations related to government debt. To establish factors that affect the national debt of Ukraine. To disclose the concept, content, and the main signs of government debt. In the study, a set of scientific methods was applied: system, induction, deduction analysis, synthesis, analogy, comparison, and bibliographic. The scientific originality lies in the fact that based on the results of the study, a holistic view of the features of Ukraine’s external debt in current conditions was developed. Its concept, content, principles, and main features were analysed and covered. The factors of external government debt that affect it were established: the quality of legislation, the state economy, the level of public confidence in the country, currency stability, war, pandemic, diplomatic relations with foreign partners, etc. Recommendations for minimising it were developed. It was proposed to exert influence in a comprehensive way – both from the economic and legislative sides, building productive relations with other countries and international organisations. Moreover, to promote transparency in the use of borrowed funds and adopt a separate law that would regulate public relations related to the state debt of Ukraine. The features of regulation and management of external government debt during the war were highlighted. It was proposed to develop methods that allow using the borrowed funds more efficiently. The practical value of the study is that the investigation and analysis of the budget process can be the basis for improving national financial legislation, as some proposals were formulated to amend the current legislation of Ukraine. In addition, the results of the study on the budget process can be used in scientific activities for further consideration of the problems of legal regulation of the budget process.