PROBLEMS OF IMPROVING THE EXTERNAL DEBT OBLIGATIONS MANAGEMENT SYSTEM

Abstract

The paper examines the main trends and specific features of the formation of external public debt, such as direct dependence on the budget deficit, the preferential use of external loans for current government needs, and the growth of short-term loans. The budget deficit provokes the government to borrow more, the national debt grows, and the cost of covering the loan becomes significant. External revenues can be used to repay previous loans and interest on them, pay for imports, finance budget expenditure items and social benefits. Servicing the external debt costs the country's budget more than servicing the domestic public debt. It should be organized taking into account not only the economic situation in the country, but also the political situation in the world. The high volume of external debt contributes to increased financial pressure from foreign countries, which can become a serious threat to the economic security of the state. With the rational use of borrowed external financial resources, they can be directed not only to cover the state budget deficit, but also to long-term investment prospects of the national economy. The study substantiates the conceptual foundations for improving government mechanisms for managing external debt obligations and servicing them in a modern market economy.