DEFAULT AND FINANCIAL SYSTEM OF UKRAINE: REVIEW OF REGULATORY POLICY

Abstract

The author researched that, today in our country, the default of Ukraine poses a serious threat to the country’s economy and financial system. Various causes of default are analyzed, such as economic difficulties, budget deficits, deterioration of the external trade balance, political crises and the growth of public debt. It was found that in order to prevent default and ensure the financial stability of Ukraine, it is necessary to implement reforms in various areas, including fiscal policy, monetary policy, banking system, tax system and energy. It is also determined to cooperate with international financial organizations and attract foreign investments. Ensuring financial stability and maintaining the economic security of Ukraine requires a comprehensive approach and decisive actions on the part of the government and other stakeholders. The article also highlights political crises and their impact on financial stability. Instability in domestic politics and lack of consensus can lead to loss of confidence of both domestic and foreign investors. The growth of public debt is also an important cause of default, especially if there is no possibility to refinance this debt and pay the interest. An undisciplined borrowing policy and high interest rates on debt can complicate the situation even more. It has been studied that in order to prevent default and strengthen the financial stability of Ukraine, it is necessary to implement a complex of reforms and strategies. This includes work on fiscal policy, monetary policy, the banking system, the tax system and energy reform. It was emphasized that it is important to cooperate with international financial organizations and attract foreign investments to support financial stability and ensure the economic security of Ukraine. A comprehensive approach and decisive actions are important factors in preventing default and ensuring sustainable development of the country. The impact of a possible default of Ukraine on international financial markets and relations with international creditors and other countries was considered, as well as the role of international financial organizations, in particular the International Monetary Fund, in resolving financial crises was discussed.