Debt burden of the financial system of Ukraine and countries of the Eurozone

Abstract

The article considers the regulating the debt burden of the financial system with the allowable level of risk of revaluation pressure on the balance the payments of the Ukraine and countries the Eurozone. The purpose of research is to substantiate the scenarios for easing the pressure of the debt burden of the financial system of Ukraine taking into account the elements management of public debt in countries the Eurozone. The methodology used in the research is based on the principles of the relationship between the indicators of economic growth and the indicators of the debt burden of the financial system within the framework of the "Laffer debt curve" model. Construction of "Laffer debt curve" shows the dependence of GDP changes on the level of debt burden of the financial system for countries what form economic core of the Eurozone and of new EU members with another level of secure debt pressure for period 2012-2017. The financial instruments have been analyzed, which allowed providing these countries with the effective management of debt risks guaranteed by the state debt taking into account national characteristics. It is determined that the critical level of permissible pressure of the debt burden of the financial system for the Ukrainian economy is within the limit of 51.2%. Based on the dynamics of payments for Ukraine public debt, the scenarios of a probable increase the debt burden in the medium-term perspective over external debt. Efficient directions of effective borrowing of financial resources and their allocation allowed to form risk-oriented scenarios of management of guaranteed government liabilities in terms of adjusting debt ratios to the limited boundaries.