State debt: concept, types
Existence state credit leads to the appearance public debt.
State debt is the amount of state debt to internal and external creditors.
The total amount of public debt consists of all issued and outstanding debt obligations of the state, interest on them, including issued guarantees on loans provided to foreign borrowers.
Causes of public debt:
Chronic state budget deficit;
Exceeding the growth rate of government spending on the growth rate of government revenues;
Discretionary fiscal policy aimed at reducing the tax burden without a corresponding reduction in government spending;
Expansion economic function states;
Attracting non-resident funds in order to support the stability of the national currency;
The influence of political business cycles (excessive increase in government spending on the eve of elections to conquer popularity by voters);
Militarization, wars and others.
Current debt - this is the amount of debt to be repurchased in the current year, and payable in this period percent for all issued on this moment Loans.
Capital duty - This is the total amount of debt and interest that must be paid on loans.
Depending on the placement of loans, public debt may be inner or external.
Internal debt - a set of state obligations in front of residents;
External debt - A combination of state obligations in front of non-residents.
The total amount of internal debt state can be divided into two parts:
1. Monetizated debt - The amount of state issued and non-missing debt obligations, including issued guarantees on loans provided to foreign borrowers, local authorities, state enterprises.
2. Unconenetized debt - this is not fulfilled by the state financial obligations stipulated by the current legislation (debt on the payment of pensions, scholarships, wages and other types social payments); Debt on state orders, providing services by government agencies and others.
State domestic debt is guaranteed by all property in nationwide ownership.
Service of public debt - This is a set of state events for the placement of bonds and other securities, repayment of loans, interest payments on them, clarifying and changing the conditions for the repayment of issued loans, determining the conditions and timing of the release of new government securities.
Public debt service is carried out by the Ministry of Finance through the banking system.
To finance the costs of accommodation, pay income and repay the debt obligations of the government Ukrainethe state budget creates a public debt service fund. In this fund, funds are credited in the amount of 50% of state enterprises obtained from the privatization of property.
The magnitude of the principal amount of public debt should not exceed 60% of the actual annual volume of the gross domestic product of Ukraine. In case of exceeding the limit amount of debt, the Cabinet of Ministers is obliged to take measures to reduce the amount of public debt to 60% and lower.
The Budget Code has introduced the corresponding restrictions for subjects RF(municipalities):
1) the maximum amount of public debt of the subject of the Russian Federation (municipality) should not exceed the amount of revenues of the relevant budget without taking into account financial assistance from the budgets of other levels budget system;
2) The maximum amount of expenses for servicing the debt of the subject of the Russian Federation (municipality) should not exceed 15% of the expenditures of its budget.
The representative body must also make decisions about the feasibility of targeted loans for investment programs, financing social and other events. Wherein mandatory condition Loan release is the registration of securities emissions prospectus in federal Commission on the securities market of the Russian Federation. In the emission transpision reflects the volume of the loan, the dates of the repayment, the conditions for the treatment of securities and other provisions.
Repayment of loans is carried out at the expense of budget funds.
In conditions of significant public debt, the state resorts to refinancing of public debt. Repayment of debt by issuing new loans.
Refinancing can be used and when servicing external debt, provided that the country's reputation on the international financial marketAs well as economic and political stability will not cause doubts.
When servicing external and internal debt, the service coefficient is determined.
For external debt, it is calculated as the attitude of all payments by debt to the foreign exchange of the state, expressed as a percentage.
A favorable service level is considered to be the value of the service coefficient at 25%.
The limit dimensions of the state domestic debt of Ukraine, its structure, sources and maturity time establishes the Verkhovna Rada of Ukraine at the same time with the statement of the state budget of Ukraine.
Sources of repayment of external debt:
Gold reserves;
Tools derived from privatization state property;
New loans.
Stages of the State Duty Management Process:
Attracting funds;
Accommodation borrowed money;
Debt return and interest payment.
Methods of public debt management:
Conversion- Changing loan yield (usually in the direction of the decline in interest).
Consolidation - an increase in the deadlines of the previously issued loans.
Unification of loan - Association of several loans in one, when bonds previously issued several loans exchange on the bonds of a new loan.
Exchange of bonds on a regressive relationship - Several previously released bonds are equal to one new bond.
Detention of loan repayment - It is carried out when the release of new loans is used only for serviced loans issued earlier. To overcome this financial situation, the government announces a delay to repay a loan. This method differs from consolidation by the fact that not only the repayment time is transferred, but also the payment of income (in consolidation of loans, the owners of the bonds will continue to receive their income).
Cancellation of debt - The state is completely refusing to debt obligations, which may be due to its financial inability (bankruptcy or political motifs).
Management of state and municipal debt- This is the system of events of the state and municipality to establish the procedure, the conditions for the issue and placement of debt obligations, as well as on the payment of income and repayment of loans. The management of the Russian Federation is carried out by the Government of the Russian Federation or the Ministry of Finance authorized by him, and the management of the state duty of the subject of the Russian Federation is the highest executive body of the state authority of the subject of the Russian Federation or the financial body of the subject of the Russian Federation. Municipal debt management issues are assigned to the executive and administrative body of the municipality (local administration) in accordance with the charter of the municipality.
A complex of public debt management measures mainly concerns two aspects - management and order management methods. Under management methodsmethods are understood to regulate loans issued into circulation. At the same time, if earlier legislation did not affect the use of certain methods and the state could unilaterally Change the amount of loan profitability, increase the validity period or delay the repayment of previously issued loans 1, and sometimes cancel public debt (refuse to debt), then the application of public debt management methods is strictly limited by the budget legislation of the Russian Federation.
The management methods include the debt restructuring, innovation, the provision of an explicit, conversion, the provision of installments, write-off and termination of debt obligations.
Long restructuring - This is a termination-based termination of debt obligations that make up state or municipal debt, with the replacement of these debt obligations by other debt obligations providing for other conditions of service and repayment.
Novation- It is based on the agreement of the replacement of the initial commitment that existed between the Parties, another obligation, providing for a different subject or method of execution (Art. 414 of the Civil Code of the Russian Federation). Such a method was used in respect of obligations under state short-term bonds and bonds of federal loans with a maturity of December 31, 1999.
Communications on state loans can be changed by agreement of the parties by subfolding(payment of money, property transfer, etc.). The conclusion of the treaty on the compensation is made with the owners of state securities that did not make innovation on time.
In relation to state external debt, along with restructuring, the conversion method is applied. External debt conversion -the means that reduces the total amount of external debt, facilitating the conditions of external debt due to the substitution of basic obligations in other, less burdensome for the debtor's state.
If the debt obligation of the Russian Federation is not repurchased (not committed by the lender certain conditions or established NPA actions) within three years from the date following the date of repayment provided for by the terms of the debt obligation or the relevant federal laws or the expired state guarantee of the Russian Federation specified by the Debt The obligation is considered terminated and written off from state domestic debt (unless otherwise provided by federal laws). The Ministry of Finance of Russia, after the expiration of the term above, makes an act of debiting from the state domestic debt not against the repayment of debt obligations expressed in the currency of the Russian Federation. Write-off from state internal debt is carried out by reducing the amount of debt on types of written off debt obligations expressed in the currency of the Russian Federation, the amount of their write-off without reflecting the specified amounts in the sources of financing deficit federal budget. However, this provision does not apply to obligations loan agreements and on debt obligations of the Russian Federation to the subjects of the Russian Federation and municipalities. The issues of state securities of the Russian Federation, redeemed (re-ordered) in the full volume of the Ministry of Finance of Russia before the date of their repayment, can be recognized by the decision of this ministry early repaid.
Under service of state (municipal) debtunderstand financial operations For the payment of income on state and municipal debt obligations in the form of interest on them or discount, carried out at the expense of the relevant budget. The service of debt obligations of the Russian Federation is carried out by the Bank of Russia, credit Organization or other specialized financial institution.
In the Russian Federation installed one system accounting and registration of government borrowing. The Ministry of Finance of Russia leads state books of the internal and foreign debt of the Russian Federation (the state debt of the Russian Federation). The same books are conducted in each subject of the Russian Federation and municipality. They make information about the volume of debt obligations (including guarantees), the date of the occurrence of obligations, the execution of these obligations is fully or partially, as well as other information.
Information on debt obligations of the subject of the Russian Federation, municipalities are subject to the transfer of the Ministry of Finance of Russia, which establishes the amount of information, the procedure and timing of its provision. Responsibility for the accuracy of the transmitted information is carried by the financial body of the subject of the Russian Federation.
The state loan management is one of the directions of the state-based state policy associated with ensuring its activities as a borrower, creditor and guarantor.
Management of state loan - This is a joint action of the state of state related to the service and repayment of public debt, the release and placement of new loans, maintaining the secondary market of debt obligations, the regulatory of the state loan market.
The Ministry of Finance of the Russian Federation and the Central Bank of the Russian Federation, which determine the total budget deficit, the volume and nature of the loans necessary for its financing, are developed by credit policies and its institutional support, and carry out this activity.
The state loan management is aimed at achieving economic, social and political goals, which are defined by the trends in public progress and the current state of the country's economy.
Among major economic tse-leu - ensuring economic stabilization and growth of production, the maintenance of its competitiveness in the global market; Social goals imply ensure social stability and social progress; Political goals are formulated based on the idea of \u200b\u200bmaintaining the stability of the functioning of the political system and ensure national security.
The achievement of these goals is largely due to the management of public debt, especially external, the state of which, as world practice is still, determines not only the country's economic independence, but also the preservation of its national su-vintage, which is especially Actually for modern Russia.
Accordingly are determined and ranked tasks that are intended to solve the system of management of state loan in Russia:
a) minimizing the value of the Dol-hectare for the borrower;
b) the effective use of attracted funds, the creation of an appropriate system of accounting and control;
c) strengthening the investment nature of loans;
d) regulation of volumes borrowed obligations States and maintaining their course;
e) attracting funds on the most profitable conditions for the issuer;
e) prioritization credit Policy States, ensuring the timely refund of the loans provided.
In the system of action to manage state loan, important is service and repayment of public debtSince all the costs of this kind are carried out at the expense of budgetary funds, creating additional support for it, and the late payments leads to an increase in the amount of debt at the expense of penalties. Only in the case of investment loans, maintenance and science of obligations are carried out at the expense of income from the project.
Service public debt assumes firstly, implementation of operations on the placement of debt obligations, secondly, payment of income on them and third, Repayment of debt is fully or partially according to plan or contributions to the repayment fund.
Repaymentdebt It assumes the full return of the principal amount of debt and interest on it, as well as fines and other payments associated with a late debt return.
Public debt service is carried out by the Bank of Russia and his institutions. The Bank of Russia carries out the functions of the general agent for servicing public debt free of charge. Payment of the Solution Agents for the placement and maintenance of public debt is carried out at the expense of the federal budget.
From the point of view of the investor, the most acceptable is its temporary revenue and loan repayment, calculation based on the base amount of debt and percent on it. However, in the conditions of meaningful growth of state debt and budget defi-quota, the government is forced to resort to various methods of debt regulation .
These methods are traditionally attributed refi-nansing, consolidation, conversion, unification of the loan, exchange of bonds for a regressive relationshipetc.
Refinancing - This is the repayment of the old state zadar-female by issuing new loans.
Conversion - Traditionally, this is a change in loans profitability (in force - in order to reduce the costs of managing public debt or increasing profitability for creditors).
Consolidation- Changing the term of the already released Zava Mos to the side of the increase (usually) or reduction. Essuz-Gaet relief conditions for debt payment in the form of delaying payments and repayment. It is possible to combine consolidation with conversion.
Unificationloan - This is a combination of several loans to one, when bonds of previously issued loans exchange on the bonds of a new loan. The goal is to reduce the number of types of valuable securities simultaneously, which simplifies the work and reduces the cost of the state of debt service. Unification of state loans is usually carried out with consolidation, but can be carried out and outside it.
In some cases, the Government can hold exchange bonds by regressive ratio i. .
Detention of loan repayment It differs from consolidation by the fact that in this case not only the duration of the repayment is made, but also, as a rule, the payment of income is terminated.
Conversion, consolidation, unification of state loans and the exchange of state bonds are usually carried out only in the number of internal loans. As for the deferment of the repayment of obligations, this measure is possible and relative to external debt. The repayment of the external loan is usually carried out in coordination with creditors, and this operation does not necessarily provide for a suspension of interest payments.
Under annulment of public debt It is understood as a complete refusal of the state from obligations on issued loans.
The main task of managing the public debt of Russia is changing the debt strategy and the transition from the course to postpone payments to the rate on debt reduction. By virtue of the current circumstances, this is the greatest extent refers to external debt. And here it is advisable to apply to the modern global experience of conversion financial methods to resolve external ass-feast, as the most flexible and adequate to the modern state and the credit opportunities of Russia.
Financial mechanism of conversion scheme It consists in the liquidation of a part of external debt through its exchange for national assets - national currency, bonds, shares, goods, financial assets, etc. The following options may be the most acceptable for Russia.
Debt in exchange for export. It means not raw material exports, but export finished products. This option allows you to maintain competitive production in the country, to develop exports, OS-launch new sales markets, and therefore, to maintain workers Mes-Ta, to ensure taxation and debt repayment, as well as investment financing. It is important to support the industry, having significant export potential (cosmic, aluminum-wai, aviation industry, etc.), which are already allowing products that meet international standards and can contribute to the growth of the economy as a whole.
Debt in exchange for property. This option is carried out, as a rule, within the Privatization Program, and also involves the exchange of debt obligations to the shares of privatized enterprises and attracting strategic investors. In this case, it is important to assess the value of domestic enterprises in accordance with the World Market Standards, and the exchange of debt obligations to shares should be carried out at the RUSSIAND for Russia. It is also important to determine the share of shares (companies) in property in the conversion of debt.
Debt in exchange for taxes. In this case, it is assumed to legally establishing such tax benefits For investors - derails of external debt, which would prompted them to invest. Conversion permission should be provided only when implementing investments important for the Russian economy. In this case, the external debt will be repaid due to future income.
Payment of interest payments on external public debt in local currency. This option is used in global practitioner in some cases. Payments are carried out on the attractive for creditors the course, but the transfer of money to interest payments is carried out on special investment accounts in domestic banks, and funds from these accounts can be on-law only for direct investment in the debtor's economy. All other manipulations from this kind of means and income from these investments can be carried out only after the expiration of the time conversion (at least one year).
Duty in exchange for cash.Ensures debt redemption with discon-volume on the secondary market of external debt obligations. In this case, the nominal duty decreases and the savings on future interest payments occur. The procedure of this operation is as follows: the government appoints an agent who has sufficient experience in the sale of foreign debts (as a rule, this is a large commercial bank) and establishes a discount to the nominal debt, which is accomplished by which it is ready to redeem the debts purchased to them.
Debt restructuring.This method of regulating debt is very common in modern conditions. Under the restructures, a repayment of debt liabilities with simultaneous exercise of borrowing (making other debt obligations) in the volume of debt obligations redeemed with the establishment of other conditions for debt service and repay them. The debt restructuring can be carried out with a partial debt amount (reduction) of the amount of the principal debt.
Many of the techniques described were used in the conclusion of Russia from the default 1998 in particular, it is possible to mention such methods as:
a) restructuring of bond loans in obligations with a later maturity;
b) negotiating with creditors to delay payments;
c) the use of different schemes of reconnaissance to reduce loan debt;
d) attracting bank loans for bond payments;
e) receiving bonds to the account of tax payments in exchange for housing certificates etc.;
e) redemption of their obligations with a discount;
g) early redemption of your obligations.
Russian legislation, in particular the Budget Code of the Russian Federation, provides for a number of organizational methods for managing state debt. The right to implement state external applications Russian Federation and concluding contracts for pre-delivered state guarantees, guarantee contracts to other borrowers to attract external loans (loans) to the Russian Federation or on its behalf - the Government of the Russian Federation or the Federal Executive Authority authorized by the Government of the Russian Federation.
The right to exercise state external borrowing originally had the subjects of the Russian Federation, whose budgets did not receive financial assistance to leveling budgetary security. At the moment, a ban on external borrowing for the constituent entities of the Russian Federation was introduced (they were not envisaged for municipalities) - the relevant amendment to the budget code came into effect from January 1, 2002
The maximum amount of state external borrowing of the Ros-Syan Federation should not exceed the annual amount of payments for the maintenance and repayment of the country's state external debt.
The maximum amount of state debt of the subject of the Russian Federation, municipal duty It should not exceed the income of the relevant budget without taking into account financial assistance from the budgets of other levels of the budget system of the Russian Federation.
As a debt management tool are offered pro-grams of external and internal borrowingprovided by the Russian Federation of state loans, indicating the purpose, sources, refund terms, total loans or pre-delivered loans.
In the country is introduced unified Accounting and Registration System of State Borrowing
Under the management of public debt it is understood as a combination of state events for the payment of income to creditors and repayment of loans, a change in the conditions of the already issued loans, the definition of the conditions and the release of new government securities.
Department of public debt is carried out by the Government of the Russian Federation within its powers.
Management goals the public debt is:
- o Preserving the volume of public debt at a cost-effective level;
- o preserving the cost of serving public debt;
- o Providing the fulfillment of the obligations of the state in full at a lower value for the medium and long term.
The payment of income on loans and their repayment is usually produced at the expense of budget funds. However, in the context of significant growth in state debt and increasing budgetary difficulties, the country can resort to refinancing of public debt.
Under refinancing it is understood by the repayment of the old state debt by issuing new loans.
For example, our country used refinancing when repaying the debt under the state 3% internal winning loan of 1966, after the expiration of this bond loan exchanged within one year on the bonds of a new loan - the internal winning loan of 1982 without paying the course difference.
Refinancing has been used in the issuance of the treasury commitments of the state. As additional funds were allocated for repayment of loans 1955-1956, which were stirred among the population in the subscription.
Refinancing is actively used when paying interest and repayments on the outside of public debt. An indispensable condition for the provision of new loans is the reputation of the country's debtor in the circles of the international financial market, its economic and political stability.
Loans are redeemed by conducting winning editions (when the nominal value of the bond is paid together with the amount of winnings), as well as overwhelming and percentage loans or through the repurchase of government securities with lenders. The payment of loan revenues is made by drawing over the winnings, annual coupons for banks by banks or the transfer of income in non-cash to the accounts of enterprises and organizations. The non-cash procedure for obtaining income was provided for the state's internal five-percent loan of 1990, placed in enterprises, as well as banks, insurance and other financial and credit institutions.
Payment of winnings, annual interestThe amounts on repayment of loans account for the main share of public debt management costs. The latter also includes the costs of making, shipping and implementing securities of the state, conducting gains of winnings, repayment circulation and some other expenses.
The state should take care of the effectiveness of the state loan. The surface idea of \u200b\u200bthe effectiveness of borrowed operations can be obtained from the comparison of the amounts of annual income on the state loan system. A relatively complete understanding of the effectiveness of government credit operations gives the ratio of excess of income over costs on the state loan system to the amount of expenses, expressed as a percentage.
Credit efficiency (E) is determined by the formula
E \u003d ((P-p) / p) x 100,
where P - arrivals on the system of state loan; P - expenses on the state loan system.
However, the amount of income on the system of government loan and the excess of income over costs for credit operations does not give an exhaustive characteristics of their effectiveness. The positive impact of the state loan on the state of the state budget should also be taken into account cash circulation Countries, Strengthening the Confidence of the Population to Financial Activities state Structures And as a result, the favorable trends in the economic development of society.
On external government debt is determined coefficient his services. It represents the attitude of all debt payments to the country's foreign exchange earnings from the export of goods and services expressed as a percentage. A secure level of public debt service is considered to be up to 25%. In our country, the service coefficient of external debt significantly exceeds the permissible limits.
Such measures in the field of public debt management, such as conversion, consolidation, exchange of bonds on a regressive relationship, repayment of repayment and cancellation of loans are directed to achieving the effectiveness of the state loan.
Under conversion it is understood as a change in loans profitable. In order to reduce the cost of managing public debt, the state of the bowl of all reduces the amount of interest paid on loans. However, an increase in the profitability of government securities for creditors is not excluded.
Under consolidation it is understood to change the conditions of loans associated with their deadlines. The state is interested in obtaining loans for long terms. An increase in the validity period of the already issued loans can be achieved by consolidating public debt.
Unification loans are a combination of several loans to one when the bonds of previously issued loans exchange on the bonds of a new loan. Unification of state loans is usually carried out with consolidation, but can be carried out outside it.
Such a measure provides for a decrease in the number of types of securities contacting simultaneously, which simplifies work and reduces state expenses on the state loan system. In exceptional cases, the Government can hold exchange of bonds for a regressive relationship, those. When several previously released bonds are equal to one new bond.
Detention of loan repayment or all previously issued loans are carried out in conditions when the further active development of operations for the release of new loans does not have financial efficiency for the state. This happens at the moment when the government has already released too many loans and the conditions for their issue were not fairly beneficial for the state. In such cases, most of the revenues from the implementation of bonds of new loans are sent to the payment of interest and repayments on previously issued loans. To break this vicious circle, the government announces a postponement of loans repayment, which differs from consolidation by deferring not only the repayment time is made, but also the payment of income is stopped.
Conversion, consolidation, unification of state loans and the exchange of government bonds are usually carried out only with respect to internal loans. As for the deferment of repayment of obligations, this measure is possible and in relation to external debt. The repayment of external loans is usually carried out in coordination with creditors. At the same time, delaying debt repayment may not entail the suspension of interest payments on it.
Under annulment of public debt measure is understood, as a result of which the state is completely refused of obligations on issued loans (internal, external plays throughout the state duty).
Cancellation of securities of the state can be carried out for two reasons. First, the cancellation of public debt is declared in the case of the financial insolvency of the state, i.e. His bankruptcy. Secondly, the annulment of debt may be a consequence of coming to power of new political forces, which for certain reasons refuse to recognize the financial obligations of the previous authorities. Note that at present the Government of the Russian Federation recognized some of the external pre-revolutionary debt.
Important is the scope of public debt management associated with the definition of conditions and the release of new loans. When determining the conditions of emission of loans, the main of which are the level of profitability of securities for creditors, the term of loans, the method of payment of income, the state is obliged to be guided not only to the interests of achieving the maximum financial efficiency of loans, but also take into account real conjuncture in the financial market. The success of new loans can be ensured only if the situation in the economy is taken into account, the state of money circulation, the level of profitability and terms of existing loans provided by the benefits to creditors and many other factors.
When managing public debt, its restructuring - the repayment of debt obligations with the consent of creditors, with installments of payment (ie, the adoption of other debt obligations) in the volume of debt obligations redeemed with the establishment of other conditions for the service of debt obligations and the maturity time (revision of the payments time, debt partitions).
In world practice, there are four main schemes for the restructuring of sovereign debt:
- o Exchange of some debt obligations to others ("Bond Bonds" scheme);
- o Exchange of debt obligations for shares in the framework of the state privatization program ("Bond-Shares" scheme);
- o early redemption of debt obligations with a discount ("ransom" scheme);
- o write-off part of debt obligations.
In order to manage public debt and its decline in Russia, the program of state external borrowing of the Russian Federation for the next fiscal year, indicating the purpose, sources and volumes of borrowing, as well as the refund periods. As a result of the management procedure, debt reduces, and in some cases increases. If the debt or part is written off, then subject to the take of new loans.
The program of state domestic borrowing of the Russian Federation to cover the deficit is also being developed.
All means entering borrowing budget, including funds spent on servicing and repayment of public debt, are reflected in the budget as sources of funding budget deficit.
The public debt management system is the relationship of budget, financial, accounting, organizational and other procedures aimed at effective regulation of public debt and reducing the impact of the debt burden on the country's economy.
The public debt management system is directly related to the budget process, since the debt policy and the public debt management system directly affect the formation budget Policy. Taking into account this, a public debt management policy and a debt management system are the necessary conditions for the formation of a substantiated budget policy and the normal functioning of the budget process.
Within the framework of public debt management, two are published books on the accounting of public debt:
- o State debt of the Russian Federation in relation to state domestic debt;
- o State debt of the Russian Federation in relation to state external debt.
The methodology for accounting for debt liabilities is largely varied in various divisions of the Ministry of Finance of Russia, carrying out accounting not only by debt categories, but also by types of debt obligations, which makes it difficult to determine the exact amount of debt and prospective budget planning in terms of service and repayment of public debt and attracting borrowing.
Interest payments for a long time and gradual repayment of the principal amount of debt is called debt service.
The excessive passion of the Government of the Russian Federation at the beginning of market reforms loans negatively affected the budget, and, consequently, on financing the sectors of the economy and the social sphere.
With a lack of tax and non-tax funds for the formation of budget revenues, the state uses its ability to attract additional financial resources by borrowing funds, accumulating debt, which ultimately leads to an increase in public debt.
The policy of the Russian Federation in the field of public debt. In accordance with the principles of debt policies in 2005 and 2006. Russian Federation carried out early repayment state external debt obligations. In January 2005, the balance of debt obligations to the IMF was early in full. In June 2006, the Russian Federation fully repaid the debt to the Paris Creditors Club.
Currently, the level of public debt remains at a safe level of less than 9% of GDP (the volume of foreign debt by the end of 2010 amounted to 2.8% of GDP), which ensures the sustainability of the budget system and contributes to the strengthening of the international authority of Russia as a significant reserve of financial and debt stability having a reputation as a bona fide borrower and aspiring specific policies to improve investment climate in the country.
The state debt policy of Russia for 2008-2010. It did not provide for the involvement of financial unrelated loans in the foreign market.
Principles of state debt policy of the Russian Federation:
- o replacement of state external debt internal borrowing;
- o Development of the Government Securities Market;
- o use of state guarantees to accelerate economic growth;
- o Use of debt tools to implement additional sterilization of excessive cash and combating inflation.
In the field of domestic borrowing debt in 2010-2013. It will proceed from the purpose of developing the market of government securities. The key tasks will increase the liquidity of the market part of the state domestic debt and the preservation of the optimal duration and profitability in the government securities market.
During this period, a positive borrowing balance is planned in the domestic market, not leading to an increase interest rates. Borrowing in the state domestic debt market will mainly be medium and long-term.
Restricting borrowing in the domestic market with an almost complete refusal to external borrowing in combination with early repayment of a significant part of foreign debt from the funds of the Stabilization Fund led to the fact that the size of public debt fell to about 7% of GDP, which is significantly lower than in most developed countries and transition economies. Significantly reduced the burden on the debt service budget.
Consideration of the state of public debt of the Russian Federation allows you to allocate the following highlights:
- o Most of the Russian debt (including the debt of the USSR) constitute short-term borrowing, precisely because of this, over the past ten years, the question of the debt restructuring has occurred so often;
- o There is no debt management system, i.e. Debts in Russia are engaged in the Ministry of Finance of Russia, Vnesheconombank, partly Bank of Russia. There is no single body, which was engaged exclusively by the problems of debt, although there are advantages on this issue;
- o Repayment and maintenance of the state DOL Ga is currently paid to the priority;
- o The government began to be aware of the problem of the upcoming significant payments for external debt in the coming years, as evidenced by the budget mechanism for creating a reserve fund and statement of the country's leadership on early repayment of obligations to creditors;
- o issued by Russia loans brought her little benefit and led to an increase in debt burden.
The decline in the debt burden and the exit of the country from the "debt trap" is possible only with a significant sustainable increase in the national production and implementation of socio-economic policies providing the necessary conditions To raise business and investment activity. The average GDP growth rate should not be lowered below 4% per year. The budget surplus should be directed to the planned and early repayment of debt.
The leaders of the states of the Group 20 at the end of the summit in Toronto at the end of June 2010 came to a general understanding that budget deficits should be reduced at least twice by 2013, and the ratio of public debt to GDP should be stabilized by 2016 . Such obligations took on Russia.
In 2010, the sources of coverage of the federal budget deficit in Russia were funds of reserve funds and borrowing. However, since the next year, borrowing will become the main source of deficiency coating, which under the continuing deficit means a significant (more than 1.5 times) the increase in debt service costs - approximately with 300 billion rubles. in 2010 to over 500 billion rubles. In 2013
According to the Ministry of Finance of Russia, if russian economy In the next decade, it will grow annually by 4%, and the federal budget deficit will be maintained at 3%, then by 2020, the national debt will reach 33% of GDP against the current 10%. At the same time, the interest expenses of the federal budget will increase to 3-4% of GDP at borrowing rates of 6-8%.
The need to repay public debt requires the existence of additional resource revenues to the budget, and they can be obtained (except for new loans) only with taxes. In addition, the repayment of debt obligations and payment of interest on them distracts part of the budget revenues from productive use, reduces the possibilities of increasing production and intellectual Potential Societies, for which future generations are paying. It sometimes left almost a quarter budget spending.
Optimization of public debt management and financial assets Is the goal of the Ministry of Finance of Russia. This problem remains relevant, despite the fact that in the preceding period, the volume of public debt of Russia decreased systematically. Its achievement involves a solution of a number of key tasks, namely:
- o providing an acceptable and economically sound volume and structure of the public debt of Russia;
- o reduction in the cost of maintenance and improving the mechanisms of public debt management;
- o increase the efficiency of managing foreign financial assets of the Russian Federation.
The Ministry of Finance of Russia carries out public debt management, including government debt books, the development of public domestic and external borrowing programs, government guarantees in the currency of the Russian Federation and foreign currencyAnd also carries out a number of other procedures (budget, financial, accounting, organizational, etc.), directed ineffective regulation of public debt of Russia and reducing the impact of debt burden on the country's economy.
An important direction of improving the public debt management system is the transition to modern methods of active management of debt obligations to minimize the cost of service and associated risks, for effective state debt policies and improving debt instruments of the Russian Federation1.
If the authorities will hold competent economic policiesWhat they were implemented at the beginning of the second millennium, the problem of the external debt of our country in the coming years can be completely solved.
State debt as a financial category should be considered in two aspects: active when the state plays the role of the lender, and passive when it acts as a borrower - by analogy with bank credit Currently, in financial practice, a state loan is called a loan provided by the state. As for the loan, which the state receives, it is defined as state loans that lead to the formation of public debt.
Mobilization of enormous financial resources has a consequence of all accelerating increase in state debt. Under the public debt (or debt; it is understood by the entire amount of issued, but nonsense public hires with accrued interest, which must be paid.
The historical development of public debt in capitralist countries shows that the growth of public debt is mainly due to the increase in military spending. In the period after the Second World War, the national debt arose due to the constant growth of spending on interference in the economy. One of the reasons for this is the nationalization of industries in banks in a number of capitalist countries, since their owners are in compensation for obtaining bonds of state loans that bring fixed income.
Credit relations exist not only within each country, but I am between states as one of the forms of capital export. Hence the international loan is the movement of loan capital in the field of international economic relations. Therefore, foreign debt as a result of international credit relations is included in the debt of states. In capitalist financial practice, several concepts of debt are applied: national debt, the duty of the central government, often called public debt, the debts of local authorities and debts of state-owned enterprises.
The national duty includes the debt of the central government [internal and external), the debt of local authorities. State corporations, enterprises and other debts. The ratio of these parts of the debt reflects the features of the historical development of capitalist countries. However, the trend v. The centralization of financial resources inherent in state-monopolistic capitalism is also manifested in the field of public debt.
The main type of nationwide debt is the debt of the central government
Public debt management is a direction state regulation In the conditions of chronic budget deficits of a vast growth of state debt, when the influence of the state loan on the loan capital market increases sharply. To do this, the central bank uses various methods of public debt maintenance:
Buys or sells government obligations;
Changes the price of bonds;
Varies their sales conditions;
In various ways, the attractiveness of the latter for private investors increases in various ways.
Regulation of the volume of credit operations and monetary emission It is used primarily for impact on economic activity. This direction of monetary regulation is closely connected with the first and second. Thus, the regulation of bank liquidity affects the structure of bank loans of IT deposits, the amount of money supply, the level of market rate of interest. Public debt management affects the distribution of loan capital between private and public sectors, interest rates and bank liquidity. The placement of government debt obligations in the banking system leads to an increase in monetary emission, and outside the banking to its reduction.
Special important role Play loans during periods of wars, economic crises, when taxes due to their insufficient elasticity, inability to quickly mobilize major financial resources, exposure to the effect of the situation lose their normal value. In these periods, the share of loans approach, and sometimes even overlaps taxes. During the Second World War, for example, in countries such as United Kingdom, USA, Japan, due to loans, from 30 to 40% of all costs held in state budgets were financed. The rest budget spending It was covered with taxes and emissions of paper money.
The issue of loans forms public debt. The public debt arising to finance the state budget expenditures is the debt of the central government. A characteristic feature of the current period of the evolution of capitalism is the rapid increase in public debt.
In accordance with the Civil Code of the Russian Federation under the loan agreement, one party (lender) transfers to the ownership of the other side (borrower) of money or other things defined by generic signs, and the borrower undertakes to return the same amount of money (the amount of the loan) or an equal number of other Things of the same kind and quality. Under the state loan agreement, the borrower is the Russian Federation, the subjects of the Russian Federation, and the borrowers are citizens or legal entities. State loans are voluntary and changing the conditions of the issued loan is not allowed.
The activity of the state as a borrower serves as an indicator of its state of finance. The greater the volume of borrowing. The worse is the case with the state budget. The higher the share of public debt in GDP, the more deeper the finance crisis. The huge public debt of Russia as internal and external testifies to the crisis of finance of the country.
In accordance with the Law of the Russian Federation "On the State Domestic Debt of the Russian Federation", under state domestic debt, the debt obligations of the Government of the Russian Federation before legal entities and individuals are understood. Thus, public debt and nationwide debt should be distinguished, which includes the debt not only the Government of the Russian Federation, but also the management bodies of lower links that are part of the state.
The provision of public debt of Russia is all assets at the disposal of the Government of the Russian Federation. The debt obligations of the Russian Federation can act in the form of loans received by the government, state loans or other debt obligations guaranteed by the government.
State domestic debt consists of the debt of past years and newly arisen. The Russian Federation is not responsible for the debt obligations of the national-territorial entities of the Russian Federation, if they were not guaranteed by the Government of the Russian Federation. The form of debt obligations of the national-state and administrative-territorial formations of the Russian Federation and the conditions for their release are determined independently in the field.
As noted, depending on the placement location, loans are divided into two groups: internal and external, differing types of borrowed tools, placement conditions, loan currency, loan currency.
Legislates on internal loans are legal and individuals who are residents of this state. Loans are usually provided in national currency. To attract funds, securities are issued in demand in the national stock market. For additional promotion of investors, various tax breaks are used.
External loans are posted on foreign stock markets in the currency of other states. When placing such loans, the specific interests of the inventors of the country of placement are taken into account.
Credit activities of the Russian Federation in the world arena are regulated by the Federal Law "On State External Borrowings of the Russian Federation and state loans provided by the Russian Federation to foreign countries, their legal entities and international organizations "adopted by the State Duma on December 7, 1994 and approved by the Federation Council on December 17, 1994
Currently, the Russian Federation is a major borrower both within the country and in the international arena.
On the borrowed activity of the Russian Federation in the domestic market. IN last years The borrowed activity of the Government of the Russian Federation in the securities market is rapidly activated, which is explained by the refusal to use loans Central Bank To cover the budget deficit. At the same time, high-yield securities are produced to attract funds.
As a result, a paradoxical situation appeared: the most reliable government securities are simultaneously the most profitable, and, consequently, the most popular. As a result of the majority of investors' funds involved in operations with securities, It is not in production, but to financing federal expenses and servicing internal public debt. Thus, the public debt begins to have a negative impact on the economic development of the country. The rapid increase in the costs associated with the service of public debt indicates that the growing government of the Russian Federation has become a self-reproducing process.
The state domestic debt of the Russian Federation at the beginning of 1995 was estimated at 88,400 billion rubles.
In the past years, loans of the Central Bank of the Russian Federation had the largest share in financing the debt of the Government of the Russian Federation. At the same time, their share increased. If in 1993 the share of CB loans accounted for 65.2%, then 1994 - already 67.6%. In 1995, this trend was fundamentally changed. The developed financial policy assumes that new borrowing is entirely and fully funded at the expense of other sources.
The financial year scheduled for 1996 is the limit of the federal budget deficit of 88,550 billion rubles. must be covered at the expense of internal sources in total amount 5600MRD. rub. that twice as much as the figure of 1995, and sources outside it financing in the total amount of 32450 billion rubles. Therefore, the government securities will grow rapidly, and by the end of the year its volume should reach 153 trillion. rub.
The issuer, depending on the total demand and volume of the release, determines the cut-off value, i.e. the minimum price allowed from its point of view to implement bonds. All applications received under this foam and above are subject to satisfaction; Applications in which lower prices were indicated are not satisfied, i.e. they cut off.
There are two systems for conducting closed auction trading: "American" and "Dutch". According to the "American" all applications underlying the cut-off prices, are satisfied for the prices for which they were filed. Non-competitive applications are satisfied by weighted average. According to the "Dutch" system, the satisfaction of all applications is made according to a single minimum permissible price - the clipping price. In domestic practice, a "American" system is used in the GCO trading.
The Moscow Interbank Currency Exchange was the venue for trading sessions of GKO. Currently created trading platforms in a number of cities. All purchase and calculations are carried out in electronic mode. After the end of the trading session, the data goes to the settlement system where clearing is committed, the responsibilities of the participants in front of the Exchange and the Exchange are determined - before the participants, settlements are carried out on cash and in securities depository. The owner of the bond is entitled to the credit of the cost of the GKO expendable when paying the next issue purchased.
GKOs are in great demand among investors. Investor's interest in the acquisition of GKO is determined: high reliability of this borrowed tool; high yield; high liquidity; Tax benefits, since current tax legislation income on state securities tax is not subject to tax legislation.
To issued to enterprises with the right to receive funds from the federal budget. Unlike other securities manufactured exclusively to finance the budget deficit, Ko had another appointment - a mug of the crisis of mutual non-payment of various industries. To this end, the Ministry of Finance of the Russian Federation has provided for owners to the obligation to carry out the calculations of this valuable paper.
The supply of OFZ is carried out in accordance with the Decree of the Government of the Russian Federation of March 15, 1995 No. 458 "On the main conditions of the issue and conversion of bonds of a federal loan" and "conditions for the production of bonds of the Federal Loan Loan Loan Bonds" developed by the Ministry of Finance of the Russian Federation and registered in the Ministry of Justice of the Russian Federation 13 June 1995 № 869.
In accordance with these documents, bonds are registered coupon medium-term public securities. The nominal bonds is one million rubles. The yield on bonds is determined based on the profitability of the GCO, as well as other securities, the OFZs do not have paper carriers. Operations with them are carried out by entries on the depot accounts.
In accordance with this resolution, the Ministry of Finance of the Russian Federation is allowed to be issued in 1995-1998. State savings loan in volume up to 10 trillion. rub. Ten series of 1 trillion. rub. Each. The placement of bonds began in the fall of 1995
The bonds of a savings loan are manufactured in documentary form, are securities on the bearer and provide them with owners the right of quarterly income in excess of the level of profitability on other types of government securities. Bondholders can be both individuals and legal entities.
The total amount of emission of bonds of a savings loan is determined by the Ministry of Finance of the Russian Federation within the limit of the state internal debt established by federal law About the federal budget for the relevant fiscal year.
In order to provide sources of coverage of the deficit of the federal budget and the effective use of stakes in federal property, on August 31, 1995, the President of the Russian Federation issued a decree * "0 Transmission procedure in 1995 by the pledge of shares in federal ownership." In accordance with decree in the fourth quarter of 1995, auctions were held for the right to conclude a loan agreement, the collateral of the federal ownership of shares. The loan agreement is between the Ministry of Finance of the Russian Federation and the winner of the auction. The interest for the use of the loan is calculated on the amount of the equivalent of the loan provided, expressed in the ECU at the LIBOR rate plus 0.5% per annum for three-month deposits acting on the day of the contract. Repayment is carried out either from the federal budget, or by selling stoves.
On the pledge auctions Shares of the most economically attractive associations were exhibited: the largest oil companies, metallurgical plants, marine shipping companies, aviation industrial associations.
Deconsions of the Russian Federation of September 5, 1995 No. 899 and Decree of the Government of the Russian Federation dated November 5, 1995 No. 1091 "On the issue of state securities providing for the right of their owner to receive gold bars" Ministry of Finance of the Russian Federation was given the right to issue state securities, providing for the possibility of their owners to get gold bars - bonds of the gold federal loan.
The nominal value of the bond is expressed in rubles and is determined on the basis of the cost of 100 grams of gold on the London market precious metals In the ingots (second fixing) in US dollars, translated at the official rate of the Central Bank of the Russian Federation at the date of the commission of bond emissions. The amount of interest income is equal to the annual bet on US dollars acting on the previous working day before the date of his announcement, plus one percentage. Interest income is paid once a year at the official rate of the Central Bank of Russia. The term of conversion of bonds is three years.
In 1996, the Ministry of Finance of the Russian Federation should issue bonds of state non-market loans in the amount of 15 trillion, rub. Typically, such bonds are issued to engage in funds of large investors like pension species or insurance companies. They maximize the interests of those institutions for which they are issued.
The serious financial position of the Russian Federation defines difficulties with the repayment of foreign debt obligations. A particularly acute situation was in 1992, to which the peak of payments came. 21 billion dollars had to be paid. Therefore, in the summer of 1992, the Russian government proposed its creditors to conclude an agreement on the restructuring of payments, since. Review the dates and debt payment procedure. In 1993, all payments were restructured in 1992-1993. Then the negotiations were held annually.
The activities of the Russian Federation as a guarantor gradually expands.
The systematic growth of taxes exacerbates the internal contradictions of capitalist economy, strengthening the gap between the purchasing power of workers and expanding under the influence of scientific and technological progress by production capabilities.
The second in its financial value income is state loans. If, before the general crisis of capitalism, loans acted as an extreme source of income to which the bourgeois governments were resorted if necessary to cover the deficit arises in the execution of the state budget, now they have become normal income. Different capital costs are covered by loans. In addition, in many countries, budget deficits began to be planned in budgeting, and the amount of loans, as well as taxes, is established before the start of budget execution.
