FEATURES AND PROBLEMS OF APPLYING FINANCIAL INSTRUMENTS OF THE UKRAINIAN DEBT MARKET

Abstract

The article is devoted to the analysis of the peculiarities and challenges in the application of financial instruments in Ukraine’s debt obligations market. The research focuses on the structural features of this market, its current condition in the context of macroeconomic instability and full-scale war, and the effectiveness of individual debt instruments used by the state. It has been found that the Ukrainian debt market remains largely dominated by domestic government bonds (OVDPs), which serve as the primary tool for financing the state budget and covering the deficit. Special attention is paid to the role of war bonds introduced in response to wartime needs, which, despite their social and political significance, remain fiscally oriented and limited in terms of investment attractiveness. 
The study highlights the lack of diversity among financial instruments in the debt market, the low participation of private investors, insufficient development of the secondary market, and the dependence on external financial support from international institutions. Based on statistical data and comparative analysis, the article identifies structural imbalances, overreliance on public banks, and limited integration with global capital markets as key challenges. 
The author substantiates the necessity of reforming the debt policy of Ukraine through the expansion of the financial instruments toolkit, including the introduction of indexed bonds, green bonds, and municipal securities. The research also underlines the importance of creating a transparent and investor-friendly environment, drawing on successful practices from other transition economies. Strategic transformations in the national debt management system are essential for ensuring financial stability, investment inflows, and long-term economic resilience.