PROSPECTS FOR THE DEVELOPMENT OF THE OVDP MARKET IN UKRAINE AS AN ALTERNATIVES TO EXTERNAL BORROWING

2017 ◽  
Author(s):  
Oleksandra Vіvchar ◽  
◽  
Solomiia Papirnyk ◽  
Keyword(s):  
Public Debt ◽  
Bond Market ◽  
Debt Management ◽  
Securities Market ◽  
Government Bond ◽  
Government Bonds ◽  
The Public ◽  
Long Run ◽  
External Borrowing ◽  
Domestic Economies

The article provides an applied analysis of Ukraine's public debt, in particular in the context of the feasibility of optimizing its structure. The comparison of internal and external borrowings is made, the main shortcomings and advantages of each of these ways of mobilization of financial resources are revealed. Given the hypothesis of the need to increase domestic public debt compared to external, special attention is paid to the study of the main financial instrument through which the state raises funds in the domestic market - domestic government bonds of Ukraine. The dynamics of data volumes of debt securities with an emphasis on crisis periods in both the world and domestic economies was also studied. In addition, the structure of domestic government bonds of Ukraine in circulation was considered on the basis of the owner. This made it possible to identify the main players in the domestic government bond market, as well as the motives that motivate them to increase their own portfolio of domestic government bonds of Ukraine. In order to determine the prospects for increasing the volume of output of these instruments of the Ukrainian stock market, their comparative analysis with alternative types of investments. Particular attention in this aspect is paid to the comparison of IGLBs with deposits, which today are considered the simplest, clearest and most proven way to invest money for individuals. An important role in this study is given to the analysis of key problems of the domestic government bond market, which have haunted the domestic economy since the independence of Ukraine. The main successes achieved in recent years by the Public Debt Management Office of Ukraine with the support of representatives of international financial organizations in terms of optimizing the domestic securities market are presented. The main steps that need to be taken for further real transformation of the debt securities market in Ukraine and which in the long run will reduce Ukraine's financial dependence on external creditors, in particular their requirements in the political and economic arena, are also outlined.

STUDY OF THE DYNAMICS AND STRUCTURE OF THE STATE DEBT OF UKRAINE, METHODS OF ITS OPTIMIZATION

2018 ◽  
Author(s):  
Stepan Paranchuk ◽  
◽  
Roksolana Skip ◽  
Keyword(s):  
Public Debt ◽  
Financial Stability ◽  
The State ◽  
State Budget ◽  
Government Bonds ◽  
Advantages And Disadvantages ◽  
Safe Level ◽  
Domestic Debt ◽  
The Government ◽  
External Borrowing

One of the leading problems of Ukraine's economy at the present stage of its development is the issue of public debt, the constant increase in its size, irrational structure, which creates the preconditions for the dollarization of the national economy. Public debt is an important element of a market economy. As of today, there is no state that would not use borrowed funds. Borrowing by the state is due to the lack of own financial resources needed to finance the state budget and state functions. If used effectively, borrowed funds can be a positive factor in economic growth, but otherwise the increase in debt leads to economic dependence, deteriorating financial stability, as well as the financial crisis. The article reveals the issue of public debt of Ukraine, analyzes the dynamics of its value from 2009 to 2021 and identifies the reasons for the growth and / or reduction of this indicator. A study of the structure of debt obligations on the basis of the creditor, analyzed the advantages and disadvantages of internal and external borrowing. The article also provides a detailed description of the structure of internal and external creditors, the main tools used by the Government of Ukraine to attract domestic loans. Particular attention is paid to the analysis of domestic debt in terms of the structure of domestic government bonds. The ratio of public debt to gross domestic product and its comparison with the marginal and safe level are considered. A forecast was made for the amount of public debt for the future.

Long-Run Effects of Debt versus Tax Financing

1975 ◽  
Vol 3 (4) ◽  
pp. 346-360
Author(s):  
Anibal Cavaco Silva
Keyword(s):  
Public Debt ◽  
Debt Service ◽  
Government Bonds ◽  
Net Worth ◽  
Free Distribution ◽  
Long Run ◽  
Tax Reduction

This paper reexamines Modigliani's remits of the long effects of an increment in public debt to finance a tax reduction or arising from a free distribution of government bonds Firstly, the effect of debt service on human and nonhuman wealth is introduced into the analysis. Secondly, it is shown that for the purpose of long-run debt analysis it is not legitimate to treat the cumulated change in saving as an equal change in net worth. This leads to a major correction of Modigliani's results.

Међузависност ризика неплаћања јавног дуга и солвентности земаља чланица монетарне уније // The Correlation between the Risk of Default and Solvency of Member States of the Monetary Union

2018 ◽  
Vol 13 (23) ◽  
pp. 69
Author(s):  
Бранка Топић-Павковић
Keyword(s):  
Interest Rates ◽  
Monetary Union ◽  
Public Debt ◽  
Debt Crisis ◽  
Causal Connection ◽  
Member States ◽  
Government Bonds ◽  
The Public ◽  
The Government ◽  
The Eu

Резиме: Дужничка криза у земљама Европске монетарне уније истакла је значај вођења одговорне фискалне политике, посебно у оквиру питања одрживости јавног дуга и солвентности земаља чланица. Општа правила за контролу нивоа јавног дуга, уведена у ЕУ, предвиђају обавезујуће мјере за све чланице када њихов јавни дуг пређе границу од 60% БДП-а, као и правила о максималном износу удјела дефицита у БДП-у. Интензитет дужничке кризе одређен је повјерењем инвеститора које зависи од економских фундамената, али и процјене да ли ће влада досљедно измиривати своје обавезе. Циљ истраживања јесте да утврдимо да ли је однос дуга према БДП-у позитивно корелисан са кретањем каматних стопа на државне обвезнице и да одредимо степен њихове повезаности. На узорку од 17 земаља чланица ЕМУ и временским интервалима преткризног и кризног периода, корелационом и регресионом анализом указујемо на узрочно-посљедичну повезаност наведених индикатора и њихов утицај на солвентност земље. Резултати показују да се у случају кризе јавног дуга услијед повећања каматних стопа на дугорочне државне обвезнице, значајно повећава удио јавног дуга у БДП-у што води расту ризика неплаћања дуга и посљедично несолвентности земаља чланица. Фискални аспект интеграције БиХ, посматрани кроз призму фискалних критеријума ЕУ, показују минимална одступања од референтних вриједности. Међутим, имајући у виду да кретање нивоа јавног дуга, те његово сервисирање, директно зависе од степена повећања/смањења БДП-а, извоза и расположивог прихода за сервисирање дуга, одлуке о даљем задужи- вању морају бити повезане са производним пројектима или финансирањем пројеката који ће допринијети даљем привредном расту и расту конку- рентности.Summary: The debt crisis in the European Monetary Union, emphasized the importance of keeping a responsible fiscal policy, especially in the context of issues of public debt sustainability and solvency of the member countries. Common rules for control of the public debt was introduced in the EU provide for mandatory measures for all Member States when their public debt exceeds the limit of 60% of GDP, as well as rules on the maximum amount of deficit percentage of GDP. The intensity of the debt crisis is determined by the confidence of investors, which depends on economic fundamentals as well as assessing whether the government will consistently meet their obligations. The aim of the research is to determine whether the ratio of debt to GDP positively correlated to movements in interest rates on government bonds and to determine the degree of their coherence. In a sample of 17 EMU member countries and time periods pre-crisis and crisis period, correlation and regression analysis indicate a causal connection between these indicators and their impact on the solvency of the country. Results show that in the event of a crisis in public debt due to the increase in interest rates on long-term government bonds, significantly increasing the share of public debt in GDP, which increases the risk of non-payment of debt and consequent insolvency of member states. Fiscal aspect of integration of BiH observed through the prism of fiscal criteria of the EU show a minimum deviation from the reference value, however, given that the movement of the public debt servicing is directly dependent on the degree of increase/decrease of GDP, exports and disposable income to service the debt, decisions on further borrowing must be associated with manufacturing projects or production projects that will contribute to further economic growth and competitiveness.

scholarly journals ОБЛІГАЦІЇ ВНУТРІШНЬОЇ ДЕРЖАВНОЇ ПОЗИКИ ЯК ІНСТРУМЕНТ ІНВЕСТИЦІЙНОЇ ПОЛІТИКИ КОРПОРАТИВНОГО ПІДПРИЄМСТВА

2019 ◽  
Vol 135 (3) ◽  
pp. 100-108
Author(s):  
Оксана Анатоліївна Хілуха
Keyword(s):  
Public Debt ◽  
Corporate Investment ◽  
Investment Policy ◽  
Government Bonds ◽  
Additional Information ◽  
Real Gdp ◽  
Research Findings ◽  
Investment Tool ◽  
The Government ◽  
The Cost

This paper asserts that domestic government loan bonds is an effective investment tool and offers a framework for evaluating government bonds as an investment instrument within a corporate business. The research findings demonstrate that the investment success of the corporate enterprise depends on domestic market bond liquidity and the risks associated with the external environment uncertainty. The purpose of this study is to assess the role of domestic government loan bonds within corporate investment policy. To achieve the research objective, the following methods have been employed: a synthesis – to identify the nature of corporate investment policy, methods of economic statistical analysis – to provide a government bond market analysis, and comparative structural analysis – to explore the preferences and benefits associated with the use of international practice in the area of developing a government debt policy. Data analysis for the period 2013-2017 indicates that the increase in domestic public debt in Ukraine negatively affects the companies in their decision to invest in government bonds. The operation of the united forces (formerly, the anti-terrorist operation) in Eastern Ukraine has triggered a 10 times increase in domestic public debt compared with the real GDP growth. The public increased to 143,2 billion UAH which was perceived as knock-on effects of inflation and 14% of GDP behind the banking crisis and the cost of its overcoming within 2014-2016. Corporate investing in domestic government loan bonds depends on the area of corporate enterprise operation. It is argued that companies with superior financial performance should invest in bonds, thus contributing to their further growth by creating a solid background for building competitiveness. High risks and low financial capacity characterize other sectors of industry, which company should wait for more information before investing in government bonds. High risks and low finance opportunities feature other industry sectors, and firms in these sectors should anticipate additional information prior to investing into the government bonds.

scholarly journals Budget and Tax Policy and the Public Debt Market in the First Half of 2020

Federalism ◽  
2020 ◽  
pp. 169-187
Author(s):  
I. S. Bukina
Keyword(s):  
Public Debt ◽  
Quantitative Easing ◽  
Monetary Policies ◽  
Government Bonds ◽  
The Public ◽  
Debt Burden ◽  
Russian Economy ◽  
Debt Market ◽  
Coronavirus Infection ◽  
Restrictive Measures

The pandemic of a new coronavirus infection for the Russian economy was a double shock: against the background of the spread of COVID-19, oil prices fell sharply. This was a serious shock for the economy and budget revenues. However, it was the budget expenditures that played a major role in supporting output. In addition, monetary policy was expansionary. Thus, in the first half of 2020, a combination of stimulating fiscal and expansionary monetary policies was observed. This combination increased the demand for government bonds. During the periods of the next decrease in the key rate of the Central Bank, an increase in the yield of OFZ was observed. Despite the fact that the level of Russia’s debt burden is low, there are specific risks that limit the possibilities for increasing debt. These include possible sanctions, a weakening of the ruble, falling incomes of the households and a high probability of an increase in bankruptcies of those organizations that will not be able to survive the consequences of the introduction of restrictive measures. Given these risks, it is necessary to consider mechanisms to support the economy using debt instruments and quantitative easing policies.

scholarly journals Land

2021 ◽  
pp. 105-136
Author(s):  
Carl Christian von Weizsäcker ◽  
Hagen M. Krämer
Keyword(s):  
Interest Rates ◽  
Risk Premium ◽  
Public Debt ◽  
Agricultural Land ◽  
Golden Rule ◽  
Government Bonds ◽  
Balance Sheets ◽  
Land Rents ◽  
The Interest Rate ◽  
China Region

AbstractPrivate wealth is comprised in part of capitalized future land rents. The Golden Rule of Accumulation is preserved even if we introduce land into our meta-model. Urban land is far more valuable than agricultural land. The risk tied to land leads to a reduction in its value in the form of a “risk premium” α > 0. Land rents can be taxed without any possibility of the tax being passed on to tenants and without loss of efficiency. If the tax is offset by a reduction in income tax, their taxation can even give rise to efficiency gains and positive distributive effects. The possibility of government intervention in the residential rental market represents a further risk for landowners. The sensitivity of the value of land to changes in the interest rate and hence the risk premium α rise with falling interest rates. In light of these many different risks, land as investment can only to a limited extent be a substitute for government bonds and hence for increasing private wealth by way of public debt. We calculate the value of land as asset category in the OECD plus China region. To this end, we primarily rely on data from statistical offices that provide figures for land in their national balance sheets. Our calculations show that the value of land in the countries of the OECD plus China region is about twice annual consumption in the region.

Sign in / Sign up

Export Citation Format

Share Document