№ 5/2018

Fìnansi Ukr. 2018 (5): 22–40https://doi.org/10.33763/finukr2018.05.022

PUBLIC FINANCE MANAGEMENT

KUDRJASHOV Vasyl ¹

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-4801-3620

Use of DGB in public loans management

The analysis of the dynamics of indicators of state borrowing, using the debt securities placed by the government on the domestic market, is carried out. The reasons for their growth in recent years in the public loans management in Ukraine are disclosed. It is established that the increase in the public debt is due not so much to the growth of the state budget deficit as to the need to repay obligations and conduct active operations (within the framework of financing the state budget). Particularly important are operations on budget support for state-owned corporations that are related to deficit-debt adjustment. The analysis of risks and features of domestic government bonds (DGB) placement aimed at ensuring the financing of the state budget (by nomination in different currencies, the focus on the use of the attracted resource, dynamics of indicators of their profitability) is conducted. Conclusions are made on the participation of various groups of investors (central bank, commercial banks, state banks, legal entities and individuals, as well as non-residents) in investments in DGB. The influence of such participation on the maintenance of the financial resilience, stability of the banking sector, economic development, and the activities of state banks are determined. It is noted that the aggravation of the risks of financing the state budget with the use of DGB mechanisms leads to their reprofiling between the government and the central bank. The participation of commercial banks in the acquisition of government bonds leads to an increase in the risks of lending to the real sector of the economy. It is concluded that the policy of using DGB in order to secure the state budget financing continues in 2018. The author proposes ways to reduce the use of DGB mechanisms in the management of public debt.

Keywords:state budget deficit, state budget financing, state borrowing, debt securities, deficit-debt adjustment, public debt, risks of DGB placement

JEL: H61, H63, H81

Kudrjashov V. . Use of DGB in public loans management / V. . Kudrjashov // Фінанси України. - 2018. - № 5. - C. 22-40.

Article original in Ukrainian (pp. 22 - 40)

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