ANALYSIS OF THE USE OF FINANCIAL CONTROL METHODS IN THE REGULATION OF PUBLIC EXTERNAL DEBT

Abstract

This study examines methods of financial control in the regulation of public external debt and the potential for applying the concept of due diligence within the public debt management system. The relevance of this topic stems from the need to enhance the efficiency of external debt utilization, reduce debt risks, and ensure the stability of public financial policy. The foreign experience of developed and developing countries is analyzed, and the main instruments of financial control and their characteristics are identified. Particular attention is paid to due diligence as a comprehensive mechanism for evaluating debt decisions, including risk analysis, legal expertise, and monitoring the effective use of borrowed funds. It is argued that the implementation of this approach will contribute to increasing the transparency of borrowing operations and strengthening the country’s debt sustainability. Conclusions are drawn regarding the advisability of integrating risk-oriented mechanisms into the public external debt management system.