№ 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)

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