№ 5/2019

Fìnansi Ukr. 2019 (5): 64–78https://doi.org/10.33763/finukr2019.05.064

PUBLIC FINANCE MANAGEMENT

LJUTYJ Igor ¹, SOFIIENKO Anastasiia ²

¹Taras Shevchenko National University of Kyiv
OrcID ID : https://orcid.org/0000-0002-3561-2432
²Taras Shevchenko National University of Kyiv
OrcID ID : https://orcid.org/0000-0003-0359-1363

External government loans as an instrument of public financial policy

In modern conditions, access to the sources of financial resources is greatly simplified. This leads to the expansion of possibilities for external government loans. At the same time, the main issue is the possibilities of efficient use of these financial resources in order to stimulate economic potential. The authors study the influence of external public loans on the financial system of the country and find out their place and role in the public financial policy. It is proved that external government loans play a significant role not only in the financial but also in the economic system of the state. The influence of external government loans on the budget and monetary spheres is substantiated. The key directions and efficiency of external government loans are considered using the example of domestic practices of recent years. It is determined that in the recent years the monetary sphere has been the main sector to which external government loans were directed. The main conditions under which external government loans would have positive consequences for the stabilization of the financial system and further growth of the economy as a whole are analyzed. The study of domestic practices of external government loans enabled to identify two main directions of their use: to finance the public budget deficit and replenish the NBU’s international reserves. In order to minimize the negative effects that may result from the ineffective use of the government loans instrument it is suggested to develop a comprehensive program for managing the previous external government loans. In particular, such a program should envisage a full range of measures for the effective management of the already accumulated gross external debt, as well as the principles that should be allowed for in taking further external loans.

Keywords: external government borrowing, gross external debt, external borrowing management, state budget deficit.

JEL: E52

Ljutyj I. . External government loans as an instrument of public financial policy / I. . Ljutyj, A. Sofiienko // Фінанси України. - 2019. - № 5. - C. 64-78.

Article original in Ukrainian (pp. 64 - 78)

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