PECULIARITIES OF DEBT FINANCING OF THE UKRAINIAN ECONOMY

Анотація

The article examines the impact of capital attracted through domestic state bond on a recipient economy. It investigates the features of global borrowing, major reasons for debt growth and proves the importance of internal borrowing on the example of Ukraine. Further, the article overlooks the structure of debt capital and changes in the main groups of bond loans over the last years. It explains the reasons for changing dynamics of debt capital engaged by Ukraine through external and domestic borrowing. The research substantiates functional purpose of state bonds and their crucial role in balancing budget deficit andpost-crisis recovery of the national economy. With regard to the global cut of the interest rates, the perspective directions of further research of debt capital can be a feasibility of its cost, volatility of investors’ demand and reliability of debt attraction due to the country risk of a borrower. The growth of public debt in developing countries requires clarifying the structure of debt capital and clarifying the directions for using public debt. In a view of the above analysis, it is appropriate to conclude that the functional appropriation of OVDP funds is only in financing the budget deficit and the trade balance. Strategically important areas of debt capital use in Ukraine include restoring the liquidity of the banking sector, maintaining the functioning of key government institutions, ensuring Ukraine's defense capability and the creditworthiness of the national economy.

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