Socio-Economic Significance of the Formation of an Effective Financial System in the Context of Hostilities

In the article, the authors considered the role of the financial system in socio-economic development in the conditions of war. The influence of financial mechanisms on social development, support of entrepreneurship, reduction of social inequality and creation of a stable economic environment is analyzed. Direct losses from the destruction of infrastructure as a result of Russia’s military aggression are estimated. The dynamics of the inflation rate in Ukraine, indicators of the budget deficit of Ukraine and public debt during 2020–2023 are analyzed. The problems of effective development of the financial system of Ukraine are identified and measures to adapt the financial system of Ukraine to military conditions are proposed. Within the framework of the Strategy, it is proposed to implement European legislation and best world practices in such areas as regulation of the financial sector, resolution of bankruptcy cases and exit of financial institutions from the market. Proposals were made regarding the creation of a stable and efficient financial system and the introduction of a number of strategies aimed at ensuring stability, liquidity and social justice in the period of the Russian-Ukrainian war and the post-war period. The results of the study can be used to formulate recommendations for optimizing financial policy in conditions of unrest and military conflict.