Functioning of the financial system of Ukraine in extreme conditions of martial law

Keywords: financial system, budget and monetary policy, financing, public debt, Ministry of Finance, National Bank

Abstract

The study highlights the current features of the financial system of Ukraine. Description and justification of extreme conditions of martial law in the country is a general context for the presentation of the material. It is determined that currently the financial system of Ukraine operates in conditions of non-cyclical stress caused by the war. Smoothing its features and fluctuations requires significant volumes and rapid external financing.

The consolidated actions of international financial organizations and countries in financing the defense and humanitarian budget needs of Ukraine are shown. It is emphasized that the Ukrainian financial system restart in wartime has become one of the main tasks of fiscal and monetary policy of the state to ensure financial and price stability.

Priority tasks for the country's financial system during the war have been identified. They are: attracting the necessary additional resources for macro-financial stabilization, maintaining the purchasing power of the national currency “hryvnia”, curbing inflation, strengthening regulated money circulation. The agreed joint action of the Government and the National Bank of Ukraine in resolving these problems is emphasized.

The changes in the financial sector of the economy functioning are shown in the analysis of activity of the Government of Ukraine, the Ministry of Finance and the National Bank of Ukraine in the context of: a) financing the army and defense needs; b) features of managing the public debt.

The growing role of the state in the periods of cataclysms and war is raised. It is emphasized that the financial authority of the state is the authority of the state budget. It is proved that the current consolidation of public financial management bodies is combined with the consolidation of society and government as a whole.

Post-war restructure of political and economic system of states is expected. Life safety and prudent financing the relevant costs will require reformatting previously familiar standards and institutions. Ukraine's role in the new format of international relations can be seen in the political, economic and military aspects.

Author Biography

Volodymyr Korneev , State Research Institute of Informatization and Modeling of Economy

Full Professor, D.Sc. in Economics, Head of the financial policy department

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Published
2022-06-27
How to Cite
Korneev , V. (2022). Functioning of the financial system of Ukraine in extreme conditions of martial law. VUZF Review, 7(2), 6-16. https://doi.org/10.38188/2534-9228.22.2.01
Section
Articles