Implementation of the investment potential of personal investors in the domestic government borrowing market of Ukraine

Abstract

The relevance of the study is determined by the increasing role of domestic government borrowing in ensuring Ukraine’s financial stability under conditions of full-scale war and the necessity to intensify the involvement of household funds in financing public needs. Under conditions of macroeconomic instability, inflationary pressure, exchange rate fluctuations, and transformations in the financial behavior of the population, the realization of the investment potential of personal finances through the market of domestic government bonds acquires particular importance. The purpose of the study is to substantiate the theoretical and applied foundations for the realization of the investment potential of personal finances in the domestic government borrowing market under wartime conditions in Ukraine, taking into account current macroeconomic and behavioral transformations in the investment activity of the population. Methods. The study employed methods of analysis and synthesis to generalize theoretical approaches to assessing the investment potential of personal finances, systematization to structure the factors influencing the investment activity of the population, comparative analysis to evaluate modern mechanisms for involving individual investors in the domestic government borrowing market, and logical generalization to formulate practical recommendations for improving the efficiency of domestic public debt financing. Results. The economic essence of the investment potential of personal finances and the peculiarities of individual investors’ participation in the market of government debt instruments were investigated. It was revealed that under wartime conditions the investment behavior of the population is shaped by macroeconomic, behavioral, and security-related factors that determine the level of trust in government financial instruments and the structure of investment demand. It was proved that the digitalization of financial services and the integration of domestic government bonds into mobile banking platforms contribute to expanding public participation in domestic government borrowing. It was established that the efficiency of realizing the investment potential of personal finances is constrained by high macroeconomic uncertainty, inflationary and currency risks, insufficient financial literacy of the population, and unstable investment expectations. Conclusions. The expediency of improving digital mechanisms for public access to domestic government bonds, developing flexible government debt instruments, increasing the transparency of public debt policy, and strengthening financial awareness among the population was substantiated. It was concluded that the activation of the internal investment potential of the population would contribute to strengthening the financial stability of the state and reducing the dependence of the budget system on external financing sources. Prospects for further research are associated with the analysis of behavioral models of individual investors, the development of digital financial platforms, and the application of artificial intelligence and Big Data technologies in forecasting the investment activity of the population in the domestic government borrowing market.