THE NATIONAL DEBT OF UKRAINE: STATE AND WAYS TO REDUCE

Abstract

The article focuses on the essence of the national debt and its impact on the economy development. The views of prominent economists on the concept of debt security and national debt are examined as well. Thus, it was determined that? On the one hand, national debt as an instrument of state influence on the economy is accepted as a negative factor, but on the other hand, the theory of the necessity of state regulation prevails as it allows to the take advantage of the national loan. The analysis of the state of the national debt of Ukraine and its major trends in the dynamics of external and internal national debt was carried out. Absolute indexes of the national debt amount as well as certain indices to characterize the debt leverage and solvency of our country were applied; the main indicators of state safety in terms of national debt were determined. Mentioned above includes: the ratio of total external debt to GDP,%; the average period of repayment of the national debt, years; the level of indebtedness per person, USD dollar per person; the ratio of internal debt amount to GDP,%; the level of external indebtedness per person, USD dollar per person; International and national experience of defining threshold value indicators of debt security were generalized. Due to the limit values of these coefficients the current state of Ukraine’s debt security was estimated. A list of measures was suggested so that to improve the level of Ukraine’s debt security. The following among them should be noted: the improvement of national legislation on public debt which will allow to improve the mechanism of government borrowing and repayment of national debt; the reduction of the debt burden and the development of alternative not concerning loan instruments of financing budjet expenditures; the usage of internal borrowing as a means of redistributing the income within the country; investing involved funds to improve the production, transport, energy, information and other infrastructure for the development of human capital. Besides, such method of reducing the burden on national debt as the reduction of national debt commitments, including cancellation of debts to foreign countries by international creditors, was invited to consider.