Money, finances and credit

The impact of the threshold indication system on Ukraine’s gross public and corporate debts

Economic Annals-XXI

Economic Annals-ХХI: Volume 167, Issue 9-10, Pages: 43-48

Citation information:
Posokhov, І., Herashchenko, I., & Gliznutsa, M. (2017). The impact of the threshold indication system on Ukraine’s gross public and corporate debts. Economic Annals-XXI, 167(9-10), 43-48. doi: https://doi.org/10.21003/ea.V167-09

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Іhor Posokhov
D.Sc. (Economics),
Professor,
National Technical University «Kharkіv Polytechnic Institute»
2 Kyrpychova Str., Kharkiv, 61002, Ukraine
posokhov7@gmail.com
ORCID ID: http://orcid.org/0000-0001-9668-642X

Iryna Herashchenko
PhD (Economics),
Associate Professor,
National Technical University «Kharkіv Polytechnic Institute»
21 Kyrpychova Str., Kharkiv, 61002, Ukraine
gerashenko1977@gmail.com
ORCID ID: http://orcid.org/0000-0003-2468-581X

Maryna Gliznutsa
PhD Student (Economics),
Senior Lecturer,
National Technical University «Kharkіv Polytechnic Institute»
21 Kyrpychova Str., Kharkiv, 61002, Ukraine
gmy05@rambler.ru
ORCID ID: http://orcid.org/0000-0002-1845-3919

The impact of the threshold indication system on Ukraine’s gross public and corporate debts

Abstract. Introduction. The problems that exist in our country cannot be solved without ensuring financial security. Stabilisation of the political and economic situation requires additional permanent financial resources. In order to stabilise the economy, Ukraine is compelled to apply for additional funding, which then forms the public debt. Yet, before making such important decisions, it is essential to understand how to repay the debt and how to attract additional resources effectively.

The purpose of the article is to investigate the dynamics of Ukraine’s gross public and corporate debts and offer a system of the threshold indicators to control the volume of Ukraine’s gross public and corporate debts.

Results. The article describes a mechanism to prevent financial insecurity in Ukraine, according to which they have set thresholds controlling the growth of Ukraine’s corporate debt (a system of indicators relating to financial security in terms of the country’s gross public and corporate debts). The authors propose thresholds for the domestic corporate debt, corporate debt to non-residents, gross external debt, foreign bond issues, gross external public and corporate loans. When reaching or exceeding the values of public debt thresholds, borrowing should be discontinued.

Conclusions. The article examines issues related to threshold indicators influenced by the amount of Ukraine’s gross public and corporate debts. The authors define the structure of and changes in the country’s gross public and corporate debts, and systematise the causes associated with such changes.

Keywords: Threshold Indicators; Public Debt; Corporate Debt; Mechanism; Financial Security

JEL Classification: C43; H60; H63

DOI: https://doi.org/10.21003/ea.V167-09

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Received 15.11.2017

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