DEBT SECURITY OF UKRAINE: KEY IMPERATIVES OF MARTIAL LAW

Abstract

This article examines the practical principles of managing state debt and the formation of approaches to the debt security of Ukraine in a state of war. It articulates that with the onset of open aggression against our state in February 2022, key macroeconomic indicators catastrophically declined, and the state's ability to fill the state budget significantly diminished. Additionally, in order to fulfill state functions in the sphere of national security and defense, there arose a need for a sharp increase in funding for these areas. In fact, in 2022-2023, the issue of Ukraine's financial capacity arose not only to finance defense items in the state budget but also to allocate resources at the minimum possible level to other areas. Data analysis has shown that the accomplishment of these tasks would have been impossible without the assistance of external donors. However, it should be acknowledged that problems in the sphere of Ukraine's debt security arose long before 2022. Imbalances in public finance policy necessitated constant reliance on debt financing, which eventually led to the formation of numerous threats and risks. Taking into account the compelling support for Ukraine among the leaders of the global economy, it can be assumed that the aforementioned level of financial support will be maintained. However, there is no basis to claim that the duration and volumes of external financing will be infinite. Even in a state of war, the state needs to implement a set of measures that would reduce the level of debt pressure on the state budget. And in the post-conflict period, these tasks will be of paramount importance. The steps taken in the sphere of debt security should be based on the experience of other states and utilize modern technologies of state debt management.