PRIORITY TRENDS IN IMPROVING THE POLICY OF STATE DEBT MANAGEMENT

Abstract

Based on the analysis of implementation of the policy of state debt management, the paper offers ways to improve the state debt policy of Ukraine and gives recommendations on the possibilities of adaptation of relevant experience of some EU countries. The research discloses the essence of government debt policy, identifies the main factors that contribute to the growth of public debt in Ukraine and analyzes the obstacles to its effective management. For example, in Ukraine during the years of independence the formation of debt was influenced by a number of factors, the most important of which are significant budget deficits, dependence on imported energy, the need to increase foreign exchange reserves to ensure stability of national currency; military conflict in the Donbas and Crimea occupation, the need for technical upgrading of industries and structural reforms. Over the years of independence, there has been a significant accumulation of public debt and an increase of debt burdens, investors have noted the inefficient use of funds raised, these factors as well as unfavorable conditions on international money markets caused worsening of loan conditions turning debt management into one of the priorities of state financial policy. The latter should be based on the adoption of the Law of Ukraine "On State Duty", the development of both medium and long-term debt policy; improvement of the assessment system and prevention from the negative impact of risks; forming a modern information infrastructure of state debt management; focus on the domestic state debt market; establishment of a system of power separation between the institutions dealing with state debt; development and implementation of a system of indicators to measure the effectiveness of management decisions in the field of state debt.