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This scientific article deals with issues related to risks arising from external public debt. The authors of the article note that the state's own resources and funds do not always allow satisfying the country's unlimited needs, so borrowing from abroad becomes necessary. One of the reasons why states are forced to resort to external borrowing is the problems associated with financing budget expenditures. In today's realities, it is very important to rationally approach the issue of managing external debt, because its cancellation can seriously affect the future stability and ensure the country's national economic security. The growth of the external debt of the state, according to the authors, can lead to an increase in tax rates, diversion of funds, economic recession, inequality between people, as well as the transfer of debt to subsequent generations. Consequently, the external debt management policy is designed to enable the state to attract funds from other sources, solve social problems and ensure economic security. According to the authors, external debt is an essential link in the macroeconomic system of any country, because it affects public finances, the investment climate, money circulation and international cooperation. Those relationships that develop during the formation and repayment of debt can significantly affect the long-term economic potential of the country. In this regard, the authors note that it is necessary to conduct a comprehensive policy of the state in relation to external debt and balance its income and expenses so that there is no need for borrowing from abroad, and so that a situation does not arise in which external debt becomes the most serious obstacle to difficult path of economic transformation.
Mirgorodskaya et al. (Wed,) studied this question.