Formation of principles of debt security of territorial communities in Ukraine

Abstract

Introduction. The principles of debt security are an important component of the financial stability of territorial communities. Due to the fact that many territorial communities have significant debt obligations, their ability to be financially sustainable and provide quality social and economic services may be limited. Therefore, it is important to determine the principles that will ensure the debt security of territorial communities. The purpose of the scientific research. The goal is to substantiate the principles of debt security of territorial communities in Ukraine, as an important direction of the debt policy of local self-government bodies. Research methods. The following methods were used in the course of the research: analysis, synthesis and generalization. The main results of the study. The peculiarities of debt sustainability and debt security are considered, and their differences are determined. The approaches of financial and political organizations to the interpretation of debt security of territorial communities are highlighted, on the basis of which the own vision of the studied definition was formed, which is considered as the ability of a territorial community, or a local self-government body, which is its executive body, to ensure the optimal amount of debt by maintaining an appropriate level of credit rating and solvency in terms of servicing and repaying debt obligations with the subsequent ability to carry out economic activity. General theoretical approaches are highlighted that reveal the essence of debt security of territorial communities, among which it is worth highlighting: economic, financial, macroeconomic, social, business, political, managerial, legal, integrated, ecological, innovative, communication, socio-economic, geographical, cultural. Each of these approaches reflects different aspects of debt security of territorial communities and considers it from different positions. The main tasks that must be solved by the debt security of territorial communities are highlighted, which include: reducing the debt burden, ensuring the stability of the budget, developing the investment potential, maintaining the credit rating. The main methods of assessing the debt security of territorial communities are defined, which include: analysis of financial statements, assessment of economic potential, credit assessment, analysis of state policy in the field of regulation of debt policy of local self-government bodies, risk assessment. The world standards and methods for assessing the debt security of territorial communities are considered, based on which it is proposed to use a number of indicators that help determine the maximum debt burden on the budget of the territorial community.