Public debt in Ukraine: irrational management and risks leading to corruption
Public debt in Ukraine: irrational management and risks leading to corruption

Summary/Abstract: The economic and political crises in Ukraine have forced its government to change its approach to public debt management. In this article the dynamics of public debt in Ukraine and the costs of servicing it have been analyzed. The aim of this article is to suggest new approaches to improve public debt management in Ukraine. The main methods of research are: trend analysis, comparative and empirical analysis. New challenges to public debt management in recent conditions were explored. Areas with an apparent risk of corruption is within government resource allocations were presented. A primary area for corruption risk is in government procurement, especially for the military. Recent reforms have decreased this risk to certain extent, but every year losses from corruption are extremely excessive. Risks of corruption exist in the areas of state enterprise funding and additional capitalization of banks. Public debt management in Ukraine has its own specifics, caused by the current situation in the country. The greatest threat to the efficiency and rationality of public debt management are the risks of corruption and inefficient use of budget funds. On this basis, debt management improvement priorities should be as follows: observance of national interests in the international arena, maintaining, if not improving, the debt security and credit ratings of Ukraine, improving the effectiveness of government investments.

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