Abstract
The study is aimed at analyzing methods of country’s debt security evaluation, developing methodic approach towards estimating the level of debt security based on the calculation of the integral index, and assessing the level of debt security of CEE countries on the basis of the proposed approach. A method of calculating the integral debt security index of the country is developed, taking into account generally accepted thresholds of indebtedness and solvency indicators and the trend of countries’ increasing dependence on external borrowing.
 The proposed approach is practically tested in assessing the level of debt security of CEE countries. It is determined that the group of CEE countries is differentiated by the state of indebtedness and solvency. The highest level of debt security is demonstrated by Bulgaria, the Czech Republic and Estonia, the worst situation with the debt security is formed in Slovakia and Slovenia. Based on the analysis of the dynamics of integral debt security indices for 2007–2019, the grouping of CEE countries by the level and zones of debt security, the trends of deterioration of the region’s debt security in 2010–2015 and its improvement in 2016–2019 has been found out. The proposed approach is universal one; it can be used to calculate debt security indices and to provide comparative studies of the debt sector of any country or region. It can also help to identify weaknesses in country’s debt security that is critically important for reasoning the public policy measures to ensure a proper level of debt security.
Highlights
Modern frames of international economic security are primarily determined by the state of the security environment of national economies
The proposed methodic approach is applied to assess the level of debt security of Central and Eastern European countries
Based on the processing the official statistics on indicators of indebtedness and solvency of Central and Eastern Europe (CEE) countries using the proposed technique to assessing the level of country’s debt security, a rating of CEE countries has been obtained according to the relevant integral assessments (Fig. 2)
Summary
Modern frames of international economic security are primarily determined by the state of the security environment of national economies. Given the increasing degree of financial interdependence of national economies in the globalized world and expanding the scale of countries’ external financial relations, nowadays the task of debt security ensuring is at the intersection of geoeconomic and geopolitical interests of countries. An efficient public policy of ensuring the optimal level of debt security (both internal and external) should be based on the results of its current state assessment. The adequacy and informativeness of the obtained results of such assessment largely depends on the choice of approaches and methods of determining the state of the country’s debt security. Nowadays there are no generally accepted approaches to determining the level of debt security of the country
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