LEGAL REGULATION OF PUBLIC DEBT POLICZ UNDER CONDITIONS OF ECONOMIC INSTABILITY

Abstract

The article examines the legal aspects of public debt management in Ukraine under conditions of economic instability and security challenges. Public debt is considered as a complex financial and legal institution that forms the state’s obligations to both domestic and external creditors, defines the limits of its economic freedom, and influences political decision-making. It is substantiated that effective debt management is a key element in ensuring macro-financial stability and maintaining the state’s credibility in the international arena.

Particular attention is paid to the multidimensional nature of debt policy, which encompasses economic, political, social, and defense dimensions. It is demonstrated that debt-related risks are hybrid in nature, as financial instruments are often accompanied by political conditions, thereby increasing their impact on state resilience. The paper outlines the key problems of legal regulation of debt relations, including legal conflicts, the lag of legislation behind dynamic global processes, and the insufficient level of coordination among public authorities. The main causes of the aggravation of debt-related issues are identified as the full-scale war, occupation of territories, economic instability, and dependence on external creditors. It is argued that the analysis of debt policy requires consideration of multiple interrelated dimensions, which together determine the level of financial stability and national security, taking into account the interaction of financial, legal, and security factors.

The conclusions propose directions for improving debt policy, including updating the legislative framework in line with international standards, strengthening institutional capacity and interagency coordination, diversifying sources of financing, introducing digital and innovative debt management instruments, and ensuring a balance between debt servicing and the state’s social responsibility. It is substantiated that debt policy should be viewed not only as an economic mechanism but also as a strategic instrument for strengthening the financial stability and national security of Ukraine.