Academic literature on the topic 'State-guaranteed debts'

The article defines the current level of stability and socio-economic development of the EAEU member states, and examines the factors constraining their economic growth. Public finances are considered: regional and consolidated budgets, budget deficits and sources of their coverage; state and state-guaranteed debts. The financial position of the countries participating in the Eurasian integration in relation to the outside world is analyzed, their deficits/surpluses and debts are revealed on the basis of balance of payments, foreign assets and liabilities.

In a debt agreement that includes a guarantee regulated in the Mortgage Law, the form of legal protection provided by the State through the Mortgage Law to the creditor is the authority to execute the object of the debtor's guarantee or auction. Implementation of the auction through the State Auction Institution, namely the Office of the State Assets and Auction Service (KPKNL). The purpose of writing this article is to find out the arrangement and implementation of mortgage auctions at KPKNL. The method used is empirical juridical, with the research location at KPKNL Semarang PMK No. 213/PMK.06/2020. Auction of Mortgage through KPKNL is an effective solution for both parties in the case of debtors defaulting, because KPKNL applies regulatory procedures according to applicable regulations that protect the interests of both parties, debtors and creditors properly, which are guaranteed by regulations. The rights of creditors must be protected when the debtor defaults. Settlement of bad debts through auctions must be carried out as the final "ultimum remidium" step for debtors.

Cultivation Right are rights to exploit land which is directly controlled by the state for agricultural, fishery or livestock companies for a period of time. One of the reasons for the removal of the cultivation right was because it was neglected. cultivation rights is one of the land rights that can be used as collateral for debt and encumbered with mortgage rights. The write-off of the mortgage rights because the write-off of land rights that are encumbered with a security right does not cause the guaranteed debt to be written off. In practice, the abolition of the cultivation right which is being subject to mortgage rights due to a decision to determine abandoned land creates confusion regarding the repayment of debts between the debtor (PT. Karatau Limo Sajati) and the creditor (PT. Bank Rakyat Indonesia Tbk.) And the difficulty of utilizing the former cultivation right object which is has been designated as abandoned land. The problems in this research are 1) how is the process of controlling cultivation right as an object of abandoned land in Solok Regency ? 2) what is the position of the mortgage rights above the cutivation rights which has been designated as abandoned land in Solok Regency ? 3) how is the utilization of the ex-cultivation rights land on which a mortgage has been imposed after it has been designated as abandoned land in Solok Regency ? The approach method used is juridical empirical, the nature of the research is descriptive analytical, the research data used is in the form of primary data, namely through interviews with sources and literature study to obtain secondary data. The data is processed systematically and analytically. The results showed that 1) the control process of PT. Karatau Limo Sajati as an abandoned land object which is carried out by means of inventory, identification and research, warnings, the proposal to determine abandoned land and the determination of abandoned land can actually be canceled through a lawsuit to the PTUN based on the weaknesses in the warning process. 2) the position of the mortgage over the cultivation rights which has been designated as abandoned land has been abolished, but the abolition of the mortgage because the termination of the land title does not cause the guaranteed debt to be canceled and subsequently the debtor's debt repayment is regulated in Articles 1131 and 1132 of the KUH Perdata. 3) The utilization of the ex-cultivation rights land on which a mortgage is imposed after it is designated as abandoned land is subject to a delay from BPN RI.

Financial stability is an important measure used by stakeholders to assess the financial situation of an entity concerned. Economic worries caused by internal business issues, global processes, and international economic (regional) integration may increase the entity’s exposure to external factors. Financial stability considers the entity’s dependence on creditors and investors, i.e. the debt-to-equity ratio. Significant liabilities that are not fully covered by the entity’s own liquid funds create preconditions for bankruptcy should any large creditor demand settlement of any debts owed to it. However, borrowed funds can significantly increase the return on equity. Therefore, in analyzing financial stability, it is very important to use a system of indicators that indicate the entity’s future risks and profita-bility. Financial stability is the principal objective of financial analysis. The nature and scope of such economic analysis are aimed to determine the entity’s internal capacities, means, and methods for improving the entity’s financial stability. Thus, financial stability is understood as the entity’s guaranteed solvency and creditworthiness resulting from the effective formation, distribution, and application of financial resources in the entity’s business operations. Financial stability is assessed based on the working capital to inventory ratio and debt to equity ratio. Business entities are independent in establishing business relationships with their contract partners; therefore, they are fully responsible for the decisions they make. The increasing importance of financial analysis for the entity’s own financial situation and for its business partners is explained by the increasing demand for additional sources of business financing and the requirement to increase the productiveness of capital resources. Entity’s financial stability analysis should not focus on the current financial activities only. It should also determine what measures should be taken on a continuous basis to maintain and improve the entity’s financial situation. Both current and future stability, i.e. the entity’s sustainability, must be ensured to provide conditions for state-of-the-art competitive production. An entity is a complex system consisting of many subsystems; therefore, a complex method must be applied to analyze its stability, i.e. using a system of financial stability indicators. Present-day diversity of financial stability indicators, including both absolute and relative indicators, makes the analysis difficult and overcomplicated, creating difficulties in combining the findings of the analysis to make conclusions about the entity’s financial stability. Absolute indicators, namely equity, borrowed capital, assets, cash, accounts receivable and accounts payable, profit, play an important role in the analysis of an entity’s financial stability. Equally important are absolute indicators calculated in the analysis of financial statements: net assets, working capital, working capital to inventory ratio, stable liabilities. These indicators are criterial as they are used to establish the criteria used in the financial analysis. An entity should have a flexible structure of financial resources and, if necessary, be able to borrow funds. Therefore, another manifestation of an entity’s potential financial stability is its creditworthiness, i.e., the ability to settle its payment obligations when due. Thus, an entity is considered creditworthy if it meets a certain requirement for granting a loan and is able to repay the loan when due subject to any interest accrued. This concept is closely related to the concept of financial stability and shows whether the company is able to raise funds from different sources to repay its debts. Credit analysis may predict solvency and is closely related to the analysis of solvency, financial stability and return on equity. Entity’s stable operation, high profitability and working capital turnover also guarantee loan repayment to a certain degree.

In today’s conditions, it is quite problematic to pick out a State that does not use borrowings in order to further finance the needs of the State budget. Therefore, one of the most important problems of the economy of each country is the problem of changing the volume of public debt. The concept of public debt is immediately associated with a negative phenomenon. However, the experience of many countries shows the opposite – public debt is within the permissible limits of no potential threat to the economy. However, in Ukraine, its indicators in recent years have been steadily increasing and far exceeding the limits of the norm. This tendency is due to a number of factors on which the amount of public debt depends. The article is aimed at disclosing the theoretical aspects of the public debt and the State-guaranteed debt of Ukraine, as well as their differences. The structure of the debt and its volumes during 2016-2020 are researched. The views of foreign and domestic researchers on determining the concept of the aggregate public debt are considered. As result of the study, the current status of Ukraine’s public debt is reflected and the dynamics of both the public debt and the State-guaranteed debt in terms of their components have been analyzed for the past four years. The dependence of both the public debt and the State-guaranteed debt on the size of gross domestic product is considered. The share of the internal and the external debt in the composition of the public debt and the State-guaranteed debt respectively is analyzed. On the basis of the carried out analysis, the factors that affect the change in debt volumes, the main factors and causes that led to the growth of both the public and the State-guaranteed debt in Ukraine are defined, as well as the main trends and specific features of its formation. As a result, measures are proposed to overcome these problems.

The article aims at studying the current state of Ukraine's national debt and developing directions for its optimization. It is established that the currency component in the structure of Ukraine's national debt is slightly lower than the threshold level for the currency component in the debt structure set by the IMF for developing countries. This structure of Ukraine’s national debt indicates the dependence of the domestic financial system on currency exchange rate fluctuations and the need to increase foreign exchange costs for servicing debt obligations. The amount of debt on loans from international financial organizations and government agencies of foreign countries comprises about a third of the total amount of national and guaranteed debt, indicating significant support Ukraine receives from its international partners, especially from the International Monetary Fund. The currency component in Ukraine’s national and state-guaranteed debt indicates high vulnerability of its financial system to currency shocks. It is established that the structure of Ukraine’s national and state-guaranteed debt by types of interest rates is quite optimistic and indicates a low vulnerability of public finances to interest rate risks. The size of Ukraine’s national and state-guaranteed debt in hryvnia equivalent increased during 2013–2020 by more than 4.4 times, and its growth in USD was quite moderate. It is determined that during 2020 the size of Ukraine’s national and state-guaranteed debt increased by 27.7% in hryvnia equivalent, due to the following situations: financing the state budget deficit; the allocation of funds to combat COVID-19; national currency devaluation, etc. The ratio of national and state-guaranteed debt to GDP, reaching a maximum of 81.0% at the end of 2016, gradually decreased to 50.3% at the end of 2019, which corresponds to the norm established by the national legislation. However, the values of this index for the period under review exceed the threshold level of national debt set by international standards for countries with emerging markets (30-50% of GDP). It is shown that the 2013 2019 period saw a tendency to increase the total cost of repayment and servicing of Ukraine’s national debt, which creates the risk of refinancing national debt, causes additional pressure on the state budget and GDP, and limits Ukraine’s ability to finance its social and economic goals of social development. The main risks for Ukraine’s debt obligations are highlighted, and ways to optimize them are outlined. The need to establish a National Debt Management Agency, the activity of which would help reduce both the debt burden and the cost of public debt servicing, is substantiated.

The article is aimed at evaluating the State debt and the State-guaranteed debt as components of ensuring the sustainability of Ukraine's public finances, identifying trends and factors that determine debt security and affect the pace of development of the country's economy. The article discloses the indicators of measuring the sustainability of public finances; indicators of effectiveness of the policy of ensuring the sustainability of Public Finances of Ukraine until 2030 are presented; the role and importance of debt security in ensuring the sustainability of public finances is determined. A factor analysis of the State debt and the State-guaranteed debt is carried out on the main grounds – the average US dollar exchange rate per year, GDP, revenues and expenditures of the State budget – in order to identify trends in changes in its structure and volumes for the period 2016-2020. The main financial risks and the degree of their impact on debt security are defined, a forecast of the State debt and the State-guaranteed debt of Ukraine for the medium term for 2021-2023 has been developed using the polynomial trend. The likelihood of a worsening the debt situation in Ukraine by 2023 and, as a result, a deterioration in the resilience of public finances due to the unfolding of the coronavirus pandemic, which can be equated with the crises of 2008-2009 and 2014-2015, is proved. Proposals to improve Ukraine's debt security in the context of the coronavirus pandemic have been substantiated. Prospect for further research in this direction is to prove the need to make managerial decisions to ensure the sustainability of public finances, taking into account not only macroeconomic, but also political and institutional factors, the impact of which increases significantly in the context of democracy.

The article contains a theoretical generalization of the essence and necessity of state borrowing, monitoring of indicators of state and state-guaranteed debt in the conditions of government aspirations and actions in the field of ensuring the sustainability of public finances in Ukraine. The main task of the authors is to monitor the indicators of state and state-guaranteed debt in the context of the need to ensure the sustainability of pub- lic finances of Ukraine. State debt in Ukraine remains a significant factor of macro-financial risk. An important measure to prevent the threat of uncontrolled growth of public debt is to strengthen financial control and the implementation of continuous monitor- ing of its main indicators. The cost of public borrowing and the assessment of the effectiveness of their use as a factor in ensuring the sustainable development of the economy is a constant source of discussion between officials, public organizations, and representatives of scientific analysis centers. The article uses the generally accepted methodology for calculating the main indicators characterizing the state’s debt policy. The method of expert assessments analyzes the condition of the state debt and prospects of its servicing in Ukraine. Statis- tical and analytical methods have been used for the processing of statistical data on the study of the dynamics of indicators of state and state-guaranteed debt in Ukraine. The sources of information were the materials of the Ministry of Finance of Ukraine, the State Treasury Service of Ukraine, as well as the Budget Code of Ukraine, laws and regulations of Ukraine relating to the budget sphere, scientific works of domestic and foreign scientists. This study aims to address the issues of analyzing and evaluating pub- lic debt indicators in the context of improving debt management. The authors propose to use 10 indicators to monitor the state of public debt and make managerial decisions in public finance.

The public debt at the present stage is an objective economic phenomenon, a component of the financial system and a tool for implementing the economic strategy of the country, and its effective use can be a powerful factor in its economic growth. The paper is devoted to the study the economic essence, current state, structure and main trends of the total public debt of Ukraine. Essence of national debt, state-guaranteed debt, foreign and domestic debt and maintenance of relative amount and rate of debt are exposed. Under the type of debt obligation, public debt is divided into direct (unconditional) and guaranteed (conditional) debt, which arises as a result of the state's obligations to third parties or guarantees for these obligations. There is also a division of public debt by type of creditor. Domestic and foreign public debt are distinguished on this basis. Based on statistical data of Ministry of finance of Ukraine and Government service of statistics of Ukraine the dynamics of the debt of Ukraine is analyzed and an analysis of its structure according the type of debt obligation, and the type of creditor is carried out. Public and state-guaranteed debt during 2016–2020 grows on average annually by UAH 195.95 billion or 10.2 %. The state external debt of Ukraine increased during the period under study from UAH 980.19 billion on 01.01.2016 to UAH 1258.52 billion. at the end of 2020 with a decrease in 2019 by UAH 168.54 billion. The impact of external borrowing on economic growth is determined by the relative size of debt the share of public debt in GDP. The analysis of the indicator shows that in 2016–2020 it decreased from 81.0 % at the end of 2016 to 50.3 % in 2019, which corresponds to the legal norm, while in 2020 its share has already reached 60.8 %, which is 10.3 % more than in the previous year.