Trends in using modern financial tools for public debt management in domestic and foreign practice
Year: 2024
Type: article
Abstract: The article provides comparative analysis of modern financial tools used in domestic and foreign practice of public debt management and substantiates possible adaptation of best practices of leading countries of the world to reduce the debt level in Ukraine. The volume of world debt is analyzed, and it is found that developed economies account for 2/3 of its total volume, and developing countries - 1/3. It is noted that one of the main indicators of public debt is the ration of its amount to GDP. According to the International Monetary Fund (IMF), the Top 10 countries with the highest public debt to the GDP ratios are listed below. The countries with the largest amount of outstanding debt to the IMF are indicated. Despite growing public debt in some countries of the world, exceeding permissible level of public debt in relation to GDP by several times, the countries have stable economic situation, develop international partnerships and economic relations, are attractive to creditors and investors, and ensure increased level of the population welfare. This is made possible by efficient management of public debt, effective and continuous control over its size, and timely implementation of modern financial tools aimed at reducing the debt burden. Financial tools of public debt management in developed countries are systematized. Some directions of adaptation of foreign experience using financial tools of public debt management in Ukraine, the main ones being the issue of “green”, infrastructure and mortgage bonds are offered. To increase confidence of investors (residents and non-residents) in new financial tools of public debt management, it is necessary to reduce corruption risks, improve the country’s investment and credit ratings, and ensure timely payment of public and corporate external debt.
Institution: Chernihiv Polytechnic National University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4408530453