№ 2/2016

Fìnansi Ukr. 2016 (2): 28–48

PUBLIC FINANCE MANAGEMENT

LJUTYJ Igor ¹, LONDAR Oleksiy ²

¹Taras Shevchenko National University of Kyiv
OrcID ID : https://orcid.org/0000-0002-3561-2432
²State Tax Service of Ukraine

Regulation of state guarantees in Ukraine

The authors’ analysis the economic meaning and dynamics of guaranteed debt of Ukraine. Shown, that surgery to credit entities (usually government) in state guarantees is a type of quasi-fiscal operations that might lead to an increase in the budget deficit and rising public debt. This is consistent with regulatory documents like the International Monetary Fund and the provisions of the Budget Code of Ukraine. The rapid growth of guaranteed debt of Ukraine in 2014 and 2015 bears the risks of a substantial increase in the debt burden and its failure to parameters declared in the Memorandum of Economic and Financial Policies, concluded between Ukraine and the International Monetary Fund on Feb. 27, 2015. To improve the situation of guaranteed debt of Ukraine may be applied the European Union experience of guaranteed debt regulation, in particular in post-socialist countries that joined the EU since 2004. It is advisable, in particular, to use approaches to provision of security for the entire amount of the loan (80 %), credit limit SMEs, more stringent analysis of financial condition of the borrower, maintaining the ratio of guaranteed debt to public debt at 10 %. Authors calculated the scenario of assignation state guarantees during the years 2016—2021 with the requirements of the International Monetary Fund to gradually reduce the debt burden on the economy of Ukraine.

Keywords:guaranteed debt, quasi-fiscal operations.

JEL: G22, G28, H60, H63

Ljutyj I. . Regulation of state guarantees in Ukraine / I. . Ljutyj, O. LONDAR // Фінанси України. - 2016. - № 2. - C. 28-48.

Article original in Ukrainian (pp. 28 - 48)

Download

Downloads :1161

1. Bashko, V. (2013). The budget deficit and quasi-fiscal activities: increasing transparency in public finances. Herald of National Bank of Ukraine, 5, 40-45 [in Ukrainian].
2. Bohdan, T. P. (2013). State’s debt policy under conditions of the global instability. Economy of Ukraine, 2, 4-17 [in Ukrainian].
3. Kalytchuk, V. M. (n. d.). Government debt risks and their classification. www.publicdebt.in.ua. Retrieved from www.publicdebt.in.ua/golovna/12 [in Ukrainian].
4. Kоzyuk, V. V. (1999). The problem of public debt in the transitional economy of Ukraine. Finance of Ukraine, 5, 85-90 [in Ukrainian].
5. Lyutyj, I. O., Zrazhevs’ka, N. V., & Rozhko, O. D. (2008). State credit and debt policy of Ukraine. Kyiv: CzUL [in Ukrainian].
6. Lunina, I. O. (1999). State guarantees in transition economies: theoretical analysis and the experience of Ukraine. Economy of Ukraine, 12, 19-30 [in Ukrainian].
7. Fedosov, V. M., & Yurij, S. I. (Eds.). (2012). The budget system. Kyiv, Ternopil’: CzUL, Ekonomichna dumka [in Ukrainian].
8. Fedosov, V. M., & Kolot, O. A. (2008). Managing the public debt in the context of risk-management. Finance of Ukraine, 3, 3-33 [in Ukrainian].
9. International Monetary Fund. (n. d.). Guide to fiscal transparency (2007). Retrieved from www.imf.org/external/np/fad/trans/rus/manualr.pdf [in Russian].
10. International Monetary Fund. (n. d.). The Fiscal Transparency Code. Retrieved from blog-pfm.imf.org/files/ft-code.pdf.
11. Fiscal frameworks across Member States: Commission services country fiches from the 2011 EPC peer review. (2012, February). European Economy. Retrieved from ec.europa.eu/economy_finance/publications/occasional_paper/2012/pdf/ocp91_en.pdf.
12. Dziemianowicz, R. I., & Kargol-Wasiluk, A. (2014, September). Fiscal Responsibility Laws in EU Member States and Their Influence on the Stability of Public Finance. www.knowledgetaiwan.org. Retrieved from www.knowledgetaiwan.org/ojs/index.php/ijbi/article/viewFile/521/147.
13. European Commission. (2014, April 15). Statement. Improving corporate governance: Europe’s largest companies will have to be more transparent about how they operate. Retrieved from europa.eu/rapid/press-release_STATEMENT-14-124_en.htm.
14. Cabinet of Ministers of Ukraine. (2012). On the list of transactions and quasi-fiscal authorities (government) responsible for the assessment of the possible impact of such transactions on the budget figures (Order No. 692-p, August 1). Retrieved from zakon4.rada.gov.ua/laws/show/692-2012-p [in Ukrainian].
15. Accounting Chamber of Ukraine. (2014). Report of the Accounting Chamber for 2013. Retrieved from www.ac-rada.gov.ua/doccatalog/document/16744990/Zvit_2013.pdf [in Ukrainian].
16. Accounting Chamber of Ukraine. (2010). Reports on the state budget of Ukraine for 2009. Retrieved from www.ac-rada.gov.ua/control/main/uk/publish/article/16728123 [in Ukrainian].
17. Cabinet of Ministers of Ukraine. (2011). On approval of the management of risks associated with granting government guarantees and the distribution of risks between the government, lenders and borrowers (Regulation No. 131, February 23). Retrieved from zakon2.rada.gov.ua/laws/show/131-2011-p [in Ukrainian].
18. Communication from the commission community guidelines on state aid for rescuing and restructuring firms in difficulty. (2004, October 1). Official Journal of the European Union, C 244/2. Retrieved from eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:52004XC1001(01).