DEBT SUSTAINABILITY OF EXTERNAL INDEBTEDNESS AS AN INDICATOR OF STATE FINANCIAL SECURITY

Abstract

The article characterizes the debt sustainability of external indebtedness of economic entities of Ukraine. Maintaining an appropriate level of debt sustainability in the context of ensuring financial and economic stability is a priority area of external indebtedness management. The purpose of the study is to define the category "debt sustainabil-ity of the state" and its economic entities, identify and assess the existing risks caused by their external indebtedness, and determine the prospects for ensuring their solvency in the future. Debt stability is defined as the borrower's ability to fulfill the assumed debt obligations on time and in full, without increasing the debt burden and actions related to debt restructuring and other types of adjustments to the income and expenses balance. The assessment of debt sustainability of external indebtedness involves the determination of debt indicators according to five groups of debt indicators: sol-vency, liquidity, debts of the state, financial and private sectors. An assessment of debt sustainability was carried out based on data on the gross external debt of Ukraine for 2017 – Q2. 2022 by sectors of the economy: general state ad-ministration, monetary and credit regulatory bodies (the National Bank of Ukraine and other deposit corporations), direct investments: intercompany debt, other sectors; by instruments: debt securities, loans, currency and deposits, trade loans and advances, direct investor loans, reverse financing, obligations between sister enterprises; according to the remaining maturity: short-term and long-term debt; with geographic and currency structure, etc. The calculated debt sustainability indicators for 2021 showed compliance with optimal values for six indicators and exceeding permis-sible values for ten. ”The decrease in the level of debt sustainability occurred at the expense of significantly exceeding the threshold values of the indicators "external debt to GDP", "level of external public debt per capita", "level of exter-nal public debt to GDP", "ratio of payments for repayment and servicing of the public debt to the income of the public budget", "the level of short-term external debt to gross external debt", "the level of public debt denominated in foreign currency", and it was also explained by the low value of the indicator "ratio of international reserves to short-term external debt". In order to effectively manage the debt sustainability of the external indebtedness of economic entities of Ukraine, the need to find optimal sources and forms of public debt financing, to stimulate production, to direct public borrowing into the real investment sector in order to rebuild the economy of Ukraine as well as orientation towards tight monetary policy is recognized.