Formation, consequences and ways of reducing the state debt of Ukraine

Abstract

Introduction. In the current realities of Ukraine, this problem affects all segments of society. The article reflects the peculiarities of the formation, the main consequences of the debt and the directions of its reduction. The purpose of the paper is to analyze the volume, identify the peculiarities of the formation, highlight the consequences and justify ways to reduce Ukraine's public debt. Results. The study focuses on the importance of public debt and its impact on economic development. It is emphasized that one of the significant problems is the significant cost of. The dynamics of public debt of Ukraine during 2014–2020 is analyzed. According to the results of the analysis, the signs of dynamism, currency comparison, proportionality of external and internal debt are determined. The positive and negative consequences of the debt are substantiated with the corresponding argumentation. The essence of the positive consequences is the possibility of maintaining Ukraine's gold and foreign exchange balance at a reliable level in compliance with the necessary settlement standards and promoting the stability of the national currency. In addition, it is important formation of a positive image of Ukraine as a country with a stable financial system. The negative consequences are manifested in the fact that significant amounts of debt cause the allocation of budget funds for its maintenance, which is a burden on the implementation of economic and social programs. Negative processes are also being formed in society, as the conditions for providing the next tranches, especially from the International Monetary Fund, affect social problems and do not always find understanding in large sections of society. Relationships with international creditors, in particular the International Monetary Fund, and governments of other countries were assessed. Proposals for debt reduction have been developed with a recommendation to implement measures for the Cabinet of Ministers of Ukraine, relevant ministries of production and the Ministry of Foreign Affairs of Ukraine. Conclusion. The peculiarities of public debt formation are revealed in the work, its influence on the economy of Ukraine is determined and substantiated proposals on reduction of its volumes are developed.