PUBLIC DEBT OF UKRAINE: DYNAMICS, STRUCTURE AND RISKS TO FINANCIAL STABILITY

Abstract

The article investigated the current state of Ukraine’s public debt, its economic nature, structure and management features under martial law and economic instability. The object of the study is the public debt of Ukraine as a component of the public financial system and the financial stability of the state. The subject of the study is the economic relations between the state and creditors arising in the process of formation, servicing and repayment of Ukraine’s public debt, as well as debt risks in the context of financial stability. The methodological basis of the study was formed by the following key methods: logical, systemic, abstraction and generalization – when determining the theoretical foundations of public debt and its management; comparative, statistical, analytical, and graphical – when analyzing the dynamics and structure of Ukraine’s public debt; analysis and synthesis, and forecasting – when analyzing debt risks and identifying modern methods of public debt management to overcome them. The purpose of the article is to investigate the theoretical aspects of public debt, analyze its state and dynamics, and determine the key areas of debt management to ensure financial stability under socio-economic challenges. Practical conclusions. Enhancing public debt management through modern methods is a prerequisite for strengthening the state’s financial security, ensuring sustainable economic development, and raising the standard of living of citizens. Implementing these measures will help shape a transparent and effective debt policy capable of swiftly responding to contemporary challenges and risks. This will be facilitated by modern debt management methods and the digitalization of these processes, which enhance efficiency, streamline operations, and mitigate the risks of the negative impact of the human factor. Public debt is a necessary yet risky instrument of financial policy. A rational debt strategy must ensure a balance between the state’s financing and the preservation of macroeconomic stability, while also taking into account the interests of all citizens. Effective public debt management must be based on the principles of transparency and accountability, which will enhance public and investor confidence to overcome current challenges and foster further economic growth. Originality/value. The uncovered debt risks and proposed practical approaches to public debt management will enhance debt policy and increase the efficiency and rationality of using borrowed funds.