The Condition and Prospects of the Development of the Government Securities Market Instruments in Ukraine
Tarasiuk M. V., Timoshenko N. M.

Tarasiuk, Mikhailo V., and Timoshenko, Natalia M. (2018) “The Condition and Prospects of the Development of the Government Securities Market Instruments in Ukraine.” The Problems of Economy 4:271–277.
https://doi.org/10.32983/2222-0712-2018-4-271-277

Section: Finance and banking

UDC 336.761

Abstract:
The article contains the results of studying instruments of the domestic market for government securities in Ukraine. Due to the fact that the financial market has become a powerful and efficient source for accumulating temporarily free funds, which will satisfy interests of investors themselves, the state is trying to diversify and improve the list of government securities of Ukraine. The main trends in the development of government borrowing in the domestic market of Ukraine are described, the advantages and disadvantages of the subtypes of government debt obligations are considered. Over the past decades the number of instruments in the government debt market of Ukraine has increased. In particular, these are VAT bonds, domestic government bonds in foreign currency, indexed bonds, hryvnia-denominated and US dollar-denominated treasury bills, war bonds. Despite a rather large list of financial instruments, almost all issues of non-standard debt instruments did not have much success. The main factors affecting the issuance and circulation of government securities in Ukraine are identified. Moreover, the relationship of the state and the NBU in the government securities market is highlighted. Financial bills and discussions of scientists about its legal status are considered in the context of financial instruments. There analyzed foreign experience in implementing government debt relief programs in the USA, Japan, and Canada, in which employers participate to financially support their employees. Positive and negative aspects of their functioning are identified, and conclusions are drawn about the possible consequences and prospects for Ukraine. There substantiated proposals for measures to increase the level of investor interest in government debt instruments in the securities market that concern both legal and economic components of qualitative changes and reforms.

Keywords: government securities market, government bonds, treasury bills, budget deficit, financial bills.

Tabl.: 2. Formulae: 1. Bibl.: 15.

Tarasiuk Mikhailo V. – Doctor of Sciences (Economics), Professor, Professor, Department of Finance, Kyiv National University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine)
Email: mihailotarasiuk@gmail.com
Timoshenko Natalia M. – Postgraduate Student, Department of Finance, Kyiv National University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine)
Email: ntimoschenkom@gmail.com

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