DEVELOPMENT OF STRATEGY FOR EXTERNAL STATE DEBT MANAGEMENT

Abstract

The article improves the methodological principles of developing a strategy for managing external public debt. The development of a public debt management strategy should be based on the principles of achieving strategic guidelines regarding the total size of the debt, the cost of servicing it, and the specifics of the impact of various types of risks on the government's ability to achieve policy goals. Clear coordination of the efforts of state institutions responsible for the implementation of fiscal and monetary policy directions with bodies implementing decisions in the field of public debt management not only increases its effectiveness and achieves acceptable results, but is also a guarantee of reducing debt service costs and forming an optimal structure debt portfolio by terms, rates, currencies. The public nature of policy goals increases confidence in the public debt management strategy, helps achieve its goals, including the development of the domestic debt capital market. The key problems of public debt management outlined in the work allow establishing additional criteria for checking the practical results of strategy implementation. In addition, for the effective implementation of the strategy, there should be developed debt capital markets in the country with wide involvement of national and foreign investors, which in turn allows for effective management of the government's cash flows. An urgent issue of a successful strategy is to achieve a compromise between the expected cost of servicing the debt and its risk. As part of the public debt management strategy, an effective cash flow management policy should be used so that the state can meet its financial obligations in a timely manner. It should be taken into account that the moment of issuing new debt securities may not always coincide with the time of scheduled payments for its maintenance.