State debt is the temporary mobilization by the state of additional funds to cover its expenses by issuing state valuable papers. The increase in state debt is an important source of government spending.
Management of public domestic debt is a set of state actions for the payment of income to creditors and repayment of loans, a change in the conditions of issued loans, the placement of new debt obligations. Revenue payments to creditors are made from budget funds. There are several ways to attract the necessary money resources in those conditions when ordinary budget revenues do not allow such payments. First, it is possible to introduce new taxes. Secondly, exercising additional monetary emission. The first method is associated with an increase in the tax burden and, accordingly, with the deterioration of the socio-economic situation of the population. The implementation of the second, as a rule, means inflation.
Third way - refinancing, i.e. Repayment of the old debt of the state by issuing new loans. At the same time, the authorized body (treasury or the Ministry of Finance) organizes the sale of bonds of long-term loans for cash, and the remedy means uses for repayment of short-term securities. This form of refinancing on its own essence is quite acceptable as a tool financial Policy democratic states with developed market economy. Another form of refinancing is less perfect. With it, the repayment of old debt is carried out by replacing old government securities, the deadline of which has expired, on new or bonds to demand for long-term bonds. It is assumed that such an exchange must be implemented with the consent of the holders. In world practice, this refinancing method has a use - the whole question is how the interests of the holders really are really ensured and how much of their consent is really voluntary.
One of the methods of managing public domestic debt is its consolidation. Consolidation means an operation to extend the validity period of previously issued loans (short-term and medium-term) and turning them into long-term or indefinite.
As another method of managing public domestic debt, conversion is used. When conversion, a loan yield is made: for example, a percentage rate of income paid by the state to its creditors is reduced. The change interest rate In the direction of increasing, naturally, the case is rather hypothetically alleged than the real one.
Loan unification - i.e. The exchange of several loans per one, often accompany consolidation and conversion.
In the conditions when operations for the release of new loans are not effective, for example, when potential bond holders, as a result of the loss of confidence in the issuer, cease them to acquire them, the state may resort to the deferment of the repayment of a specific loan or all previously issued loans.
Service of domestic public debt, i.e. The implementation of specific operations on the placement of debt obligations, on the payment of dividends on them in the form of interest or in another form and on the repayment of debt obligations central bank Russia. The Ministry of Finance in this process is given a consultative role, it is directly and issued internal state loans.
Management of public domestic debt is entrusted to the legislation on the Government of the Russian Federation. It defines the procedure, the conditions for the issue and placement of debt obligations of the state. The government annually (no later than May of this year) publishes data on the state of state domestic debt for the previous fiscal year. Control over the public domestic debt is carried out by the Federal Assembly of the Russian Federation. Parliament establishes the upper limit of debt (the maximum possible size) when approving the budget and controls the debt management. In the subjects of the Federation, there is a similar design.
Legal regulation External public debt is based on the norms of international and Russian law and is determined by interstate agreements and agreements Russian Federation with international financial organizations.
The Budget Code establishes the forms of debt obligations of the Russian Federation, its subjects and the form of the municipal debt. For the Russian Federation, it is, firstly, credit agreements and agreements concluded on behalf of the Russian Federation with credit institutions, foreign countries and international financial institutions in favor of these creditors; State securities issued on behalf of the Russian Federation; Treaties on the provision of state guarantees of the Russian Federation and the contracts of the guarantee of the Russian Federation to ensure the fulfillment of obligations by third parties. Moreover, debentures Of the Russian Federation may exist in the form of agreements and treaties on the prolongation and restructuring of debt obligations of the Russian Federation of past years and reissuing debt obligations of third parties to the public debt of the Russian Federation on the basis of adopted federal laws.
Similar essentially the form of the existence of the state debt of the subject of the Russian Federation. Municipal debt functions as credit agreements and contracts concluded by municipal education; municipal loans; Contracts for the provision of municipal guarantees and debt obligations of legal entities transferred to municipal debt on the basis of legal acts of local governments.
The duration of the repayment of the federal state debt, the debt of the subject of the Russian Federation and the municipal debt. For federal debt, the possibility of short-term (up to one year), medium-term (from one year to five) and long-term (from five to 30 years) obligations. The duration of repayment of debt obligations of the constituent entities of the Russian Federation is determined by the conditions of borrowing, but may not exceed 30 years. A similar design is defined for municipal debt, but the repayment period cannot exceed 10 years.
The concept of "debt restructuring" has been established legislatively established. According to the Codex, this term means repayment of debt with the simultaneous exercise of borrowing in the volumes of debt redeemed, and other conditions for servicing debt obligations and their repayment are established. Restructuring can be carried out with a partial debt (reduction) of the debt. The last position of the Code is somewhat non-specific, since it is unclear whether the debt reduction is possible, from the point of view of the legislator, by the will of the creditor or this requires an agreement of the parties to the participants in legal relations. The Code has an accurate indication that "the change in the conditions of the state loan issued to the appeal, including the timing of the payment, the duration of treatment, is not allowed." But the speech here is only about loans, other forms of debt obligations are not mentioned. At the same time, paragraph 4 of Article 817 Civil Code The Russian Federation states about the prohibition of changes in the conditions of "loan issued to circulation". Probably, a meaningful position requires legislative clarification, since the text of the Code cannot make accurate conclusions.
Important are the provisions on the maximum amount of state debt of the Russian Federation and the marginal volumes of government borrowing of the Russian Federation. It is established that the limit volumes of state external and internal debt establish federal law about federal budget For the next fiscal year, and the maximum amount of state external borrowing of the Russian Federation should not exceed the annual amount of payments for the maintenance and repayment of the state foreign debt of the Russian Federation. It is specified that the Government of the Russian Federation has the right to exercise external borrowing over the limit established in the federal budget if it carried out such restructuring of external debt, which leads to a decrease in costs for its service, but within the framework of the established limit volume of state external debt.
The Code also determines the purpose and content of state external and internal borrowing programs, the procedure for issuing state and municipal securities, regulates the provision of state guarantees of the Russian Federation, the constituent entities of the Russian Federation and municipal guarantees. It seems important to establish a ban on the right budgetary institutions Receive loans credit organizations, other legal and individuals, With the exception of loans from budgets and state extrabudgetary funds.
As a result of the deployment of borrowed money The state debt is formed.
The state duty of the Russian Federation are Russian debt obligations to physical and legal entities, foreign states, international organizations and other subjects of international law, including state guarantees obligations provided by the Russian Federation. In Russia, there is a single system of accounting and registration of state borrowing in the debt book, which is being conducted by the Ministry of Finance of Russia (requirements for the structure of the debt book, as well as on the procedure for its maintenance and storage, are determined by the procedure for maintaining the state debt book of the Russian Federation in the Ministry of Finance of the Russian Federation).
The public debt must be distinguished from the subfedeem debt, which is the public debt of the subject of the Russian Federation, which is a set of debt obligations of the relevant region.
The Russian Federation is not responsible for the debt obligations of the constituent entities of the Russian Federation, unless the obligations were not guaranteed by the Russian Federation. In turn, the subjects of the Russian Federation are not responsible for the debt obligations of the Russian Federation, as well as on SU b federal debts of each other, if the specified obligations were not guaranteed.
The public debt is a direct consequence of the state's credit policy, and its composition depends on the forms of the state loan used to attract temporarily free funds at the disposal of public authorities. In this regard, Art. 98 BK reasonably includes in the amount of public debt of the Russian Federation only the amount of the principal debt on loans, the nominal amount of debt on state securities and the amount of obligations on the guarantees issued by Russia. Does not form the composition of public debt and the payment of interest and non-interest income According to government borrowing, since according to Art. 69 BCs they are an independent form of federal budget expenditures. Consequently, the composition of public debt form not all debt obligations of the Russian Federation, but only those that have become objects of legal relations on a state loan.
The guarantor of the state solvency in their credit obligations is the state treasury, due to the property of which public debt is ensured and without conditions. The state debt of the subject of the Russian Federation is fully and without the conditions is provided to all owned by the property of the RF property constituting the treasury of the subject of the Russian Federation.
Despite the fact that the credit relations of the state are provided by its treasury, repayment of debt and their services are carried out by the federal budget revenues. The Budget Code prescribes the federal state authorities to use all powers to form the federal budget revenues in order to repay debt obligations and servicing public debt of the Russian Federation.
State debt classified by several grounds.
Depending on the maturity date State debt is allocated public debt:
- attendant total state debt on outstanding debt liabilities and interest unpaid on them;
- the current representation of the state's costs for all debt liabilities whose maturity has already come.
Depending on the period of attractionstate debt obligations are divided:
- on short-term (attracted for up to one year);
- medium-term (attracted for a period of one year to five);
- long-term (attracted for a period of five to 30 years).
Russia's debt obligations cannot exceed the term of 30 years.
Depending on the currency Obligations allocate public debt:
- internal (expressed in the currency of the Russian Federation, i.e. in rubles; the volume of state domestic debt includes: the main nominal amount of debt on state securities of the Russian Federation; the volume of the main debt on loans received by the Russian Federation; the volume of the principal debt on budget loans and budget loans received by the Russian Federation from the budgets of other levels; the amount of obligations under state guarantees provided by the Russian Federation);
- external (expressed in foreign currency; The volume of state external debt includes the volume of obligations under state guarantees provided by the Russian Federation, as well as the volume of the principal debt under the governments received by the Russian Federation foreign states, credit institutions, firms and international financial organizations).
In some cases, the following criterion for the delimitation of public debt on the external and internal can serve as a subject. Provision credit funds the state of residents testifies to the formation of internal debt; Borrowing money from non-residents leads to the formation of external debt.
The modern credit activities of Russia indicates increased interaction of external and internal debt. So, part of the internal debt on state short-term bonds was transformed into short-term foreign debt, while new government securities posted in the internal stock market are issued to repay external debt.
Being a consequence of the credit activity of a state with a legal form, public debt may exist only in certain forms developed by economic practices and fixed by law.
Consequently, the form of public debt is legally executed economic relations that generate debt obligations of the Russian Federation.
According to Art. 98 BC The structure of the state debt of the Russian Federation is a grouping of debt obligations of the Russian Federation by types of debt obligations.
The debt obligations of the Russian Federation may exist in the form of obligations:
- on loans attracted on behalf of the Russian Federation as a borrower from credit institutions, foreign countries, including the target foreign loans (borrowing) of international financial organizations, other subjects of international law, foreign legal entities;
- government securities issued on behalf of the Russian Federation;
- budget loans attracted to the federal budget from other budgets budget system RF;
- state guarantees of the Russian Federation;
- other debt obligations previously assigned in accordance with the legislation of the Russian Federation to the public debt of the Russian Federation.
State duty is a complex economy-legal education, a special mechanism financial relationsrequiring regulation by a system of various methods.
Management of public debt - This is a combination financial operations States to ensure the unity of planning and accounting of all operations to attract, repay and maintain external and domestic government borrowing, as well as regarding the provision of state guarantees.
Management of state internal and external debt refers to the competence of the Government of the Russian Federation.
The Ministry of Finance of Russia, the main tasks of which are the development of government borrowing programs, and their implementation on behalf of the Russian Federation, as well as the management of the state domestic and external duty of the Russian Federation, are carried out directly. In accordance with the tasks of the Ministry of Finance of Russia, jointly with the Bank of Russia, conducts operations for servicing public debt, carries out the necessary measures to improve its structure and optimize costs for its maintenance.
The management of public debt is related to federal legislation and the duties of the Bank of Russia, which consults the Ministry of Finance of Russia on the schedule of the issuance of state securities and repayment of public debt, taking into account their impact on the state banking system Russia and priorities uniform monetary policy. Operations for servicing public debt The Bank of Russia carries out without charging commission remuneration.
The main methods of regulating public debt are: restructuring, conversion, innovation, prolongation and assignment of the right of claim.
Restructuring means the termination of debt obligations based on the Parties based on the Agreement, with the replacement of these debt obligations by other debt obligations providing other conditions for maintenance and repayment. In the process of restructuring, partial write-off of the amount of the principal debt can be carried out.
In the conditions of the debt crisis, debt restructuring becomes one of the primary state debt management mechanisms, since it provides the debtor the possibility of a deferment of debt payment, changes in the repayment schedule or servicing issued securities. The intermediate result of the restructuring is the provision of the debtor of the grace period, during which only interest on debt obligations is paid. The provision of a grace period is beneficial not only by the debtor, but also a creditor, because during this time the borrower can mobilize additional financial resources to raise the internal economy and create the most favorable state debt repayment conditions. In particular, in 1996, internal debt of Russia in foreign currency was reissued to government bonds (see Decree of the President of the Russian Federation of 31.01l 996 No. 126 "On some measures to streamline work with the external and domestic currency duty of the Russian Federation").
The conditions for carrying out the restructuring of domestic debt are determined by the BC and considerass debt obligations through the issuance of new debt obligations into the amount of rejuvenation with the simultaneous establishment of new conditions for servicing and repayment of the disposable debt. For example, Art. 23 budget law for 2008 and planning period 2009 and 2010. Provided restructuring monetary obligations (debt) in front of the Russian Federation, which is made by consolidating monetary liabilities with simultaneous debt debt on accrued penalties and fines and the provision of uniform installments of payment of consolidated debt. Restructuring as a method for managing public debt is applied when re-issuing domestic monetary obligations to the Russian Federation (see, for example, the Decree of the Government of the Russian Federation of July 21, 2004 No. 366 "On the holding of monetary commitments in 2004-2007, the Russian Federation, the subjects of the Russian Federation Federation ").
The restructuring of external debt is possible, as a rule, with the consent of international financial organizations - creditors, subject to the availability of conditions developed by international financial and credit practices. As part of the International Development Association to reduce debts of $ 100 million. The United States has been formed by a special fund - Debt-Reduction Facility Fund, which provides countries preferential loans To repay high external debt.
One of the basic conditions for the restructuring of external debt is the foundation of the debtor's state on the verge of bankruptcy. In particular, external lenders can offer the debtor to the financial stabilization program developed and financed by the International Monetary Fund, the system improvement program government controlled, Efficiency Enhancement Program economic Policydeveloped and financed by the International Bank for Reconstruction and Development.
The conversion of public debt means a combination of financial and legal mechanisms aimed at reducing debt. As a result of the conversion, there is a replacement of foreign debt on other types of liabilities, both financial and legal and civil law. So, it is possible: the transfer of public debt to the investment industry of the lender state; debt repayment with commodity supplies; redemption of own debt on special conditions; exchange of debt on debt obligations of non-initial parties in a loan agreement; Collecting financial requirements et al. (See, for example, order of the Ministry of Finance of Russia "On Approval of the Regulation on servicing state savings bonds"; Decree of the Government of the Russian Federation of 21.03.2007 No. 169 "On the procedure for conducting conversion operations" Debt in exchange for goods and (or) services " related to the repayment and maintenance of state external debt of the Russian Federation ").
In contrast to restructuring, the conversion is directed not to postpone payments, but to reduce the monetary volume of public debt. Regarding loans issued by Russia to other countries, conversion is one of the most optimal methods of public debt management, since it creates the possibility of milking a preferential regime of the profit, investing in the most favorable industries, access to closed markets, etc. For example, Currently, Ukraine partially repays its debt to Russia, not a visible rent for the use of Sevastopol bays.
At the same time, it is necessary to take into account that when there is an excessive conversion of public debt, it is possible to loss of control over the flow of currency funds and cheap import goods in Russia, which may entail inflation processes.
Novation of public debt means termination of obligations by agreement of the parties to replace the initial loan agreement Another obligation. A new commitment provides for a different subject or method of execution. The main condition of innovation is to preserve the subject's commitment. So, on the basis of the Decree of the Government of the Russian Federation of 11.08.2005 No. 506 "On the restriction of the innovation of bonds of the internal state-owned currency bonding loan of the III series", the bonds of the internal state loan of the named series on the bonds of the state currency bond loan of 1999 were carried out.
Novation can also touch other elements of the obligation, including its essence itself. So, it is possible to transition to a borrowed obligation of debt, which arose from any other foundation, for example, sales, lease of property and vice versa. In particular, in 1993, the states - the former republics of the USSR extended their state debts to the Russian Federation in the property form: the supply of goods, transfer of ownership, stake packages of key production facilities. In 1995-1996 The public debt of Russia in front of the countries - members of the former Council of Economic Communications was redeemed by the supply of Russian goods (Resolution of the Supreme Soviet of the Russian Federation of 30.06.1993 No. 5301-1 "On state credits government governments of the former republics of the SSR Union "; Order of the Government of the Russian Federation of 02.11.1995 No. 1527-r "On the process of repaying the state debt of the Russian Federation to member countries - members of the former SEV commodity supplies"), in 2007, obligations under the bonds of the domestic state currency bond loan were terminated by concluding with the owners of these obligations of contracts On the indentation (Decree of the Government of the Russian Federation of 20.06.2007 N-387 "On the procedure for concluding with the owners of bonds of the internal state-owned currency bond loan of the III series, who did not make an innovation on these bonds, treaties on the compensation and repayment of these bonds").
Prolongation of public debt means extension of the term of the debt obligation.
The assignment of the right claim is the replacement of one lender to others. This method of regulating public debt can be expressed on sale by the state of its accounts receivable Third parties.
The budget code has established requirements for the limiting volume of public debt and the limiting volume of state borrowing of Russia. By general rule The maximum amount of state external borrowing should not exceed the annual amount of payments for servicing and repaying the state foreign debt of Russia. The specific extreme volumes of state domestic debt and state foreign debt, as well as the limits of foreign borrowing, are approved by the Federal Law on the federal budget for the next fiscal year.
Failure to comply with the limit sizes of public debt and expenses for its service is the basis for the application of coercion measures for violation of the budget legislation of the Russian Federation.
1. The management of the state duty of the Russian Federation is carried out by the Government of the Russian Federation.
2. Management of the state duty of the constituent entity of the Russian Federation is carried out by the executive authority of the constituent entity of the Russian Federation.
3. Management of municipal debt is carried out by the authorized body of local government.
In paragraph 1, 2, 3 of the commented Article BC of the Russian Federation, it is distinguished by the objects of reference between the Russian Federation, the subjects of the Russian Federation and the municipalities. So, in accordance with the commented article, the Office of the State Divination of the Russian Federation, the public debt of the subject of the Russian Federation, the municipal debt is carried out according to the Government of the Russian Federation, government agencies executive authority of the subject of the Russian Federation, local governments.
In general, the management of state or municipal debt can be considered bicon. In the broad sense of the word, debt management is one of the directions of the financial policy of the state (municipality), carried out by the competent authorities and management and the obligations of the state (municipality) as a borrower or a guarantor. In the narrow sense, the word debt management is a set of actions related to the preparation for the release and placement of the debt obligations of the state (municipality), actions to regulate the market of state (municipal) securities, as well as actions for servicing and repaying debt obligations and providing guarantees.
The main principles of state or municipal debt are:
1) minimization of the value of the state (municipal) debt;
2) Volume and Course Regulation borrowed obligations states (municipality) in the securities market;
3) the effective use of attracted funds and control over their targeted use;
4) ensuring timely return of the loan;
5) carrying out measures for servicing, repayment of the state (municipal) debt in accordance with the main directions of the financial policy of the state (municipality).
Management of state and municipal debt includes a number of organizational, economic, financial and legal activities aimed at optimal service and repayment of state and municipal debt obligations. So, in the framework of the management of state and municipal debt, the following activities are carried out:
- Refinancing is the release of new loans, the adoption of new debt obligations in order to cover previously issued debt obligations. Such a method of managing state and municipal debt is usually carried out in conditions of insufficiency of funds for the revenue budget of the relevant level;
- Conversion is a change in the size of the revenue part of the debt obligations taken. In this case, such a change can be expressed both in reducing and in increasing the interest rate of the income paid by the Borrower (RF, the subject of the Russian Federation, the municipal formation) to its creditors;
- Consolidation is a change in the deadlines of the previously issued debt obligations. As a rule, consolidation is applied to reduce the maturity of issued state and municipal securities. However, in accordance with common principles Civil law consolidation can be carried out only by mutual consent of the borrower and creditor;
- Uniformity is a replacement of two or more types of previously issued state and municipal loans for one new;
- cancellation is a refusal of accepted debt obligations in a part or completely. This measure is illegal, but its use takes place at a violent change in the state of the debtor's state.
The listed measures for the management of state and municipal debt (with the exception of cancellation) are carried out in accordance with special legislation, as well as taking into account the restrictions established by the BC of the Russian Federation.
1. Under the management of state (municipal) duty, the activities of authorized state authorities (local governments) are aimed at ensuring the needs of public legal education in borrowed financing, timely and complete execution of state (municipal) debt obligations, minimizing debt service costs, Maintaining the volume and structure of obligations that exclude their non-performance.
2. Management of the public duty of the Russian Federation is carried out by the Government of the Russian Federation or the Russian Federation authorized by him.
3. The public debt management of the constituent entity of the Russian Federation is carried out by the Supreme Executive Authority of the State of the subject of the Russian Federation or the financial body of the Directory of the Russian Federation in accordance with the law of the constituent entity of the Russian Federation.
4. Municipal debt management is carried out by the local administration (the executive and administrative body of the municipality) in accordance with the charter of the municipality.
Comments to Art. 101 of the RF BC.
Public authorities and local government bodies are obliged to use all powers to form budget revenues of all levels to repay debt obligations and servicing the state and municipal debt of the Russian Federation. In this regard, the question of the activities of the named authorities for managing state and municipal debt.
The article does not give an appropriate definition, but in theory financial law Under the management of state and municipal domestic debt, the combination of measures of the state and the municipality on the payment of income to creditors and repayment of loans, as well as the procedure, the conditions for the issue (issuance) and the placement of debt obligations of the Russian Federation are mainly understood. This activity is carried out by the Government of the Russian Federation or by the Ministry of Finance I authorized by him, in the subject of the Russian Federation - the Supreme Executive Authority of the Public Authority of the Directory of the Russian Federation, the management of the municipal debt - the executive and administrative body of the municipal formation.
The main methods of public debt management include the following.
The payment of income on loans and their repayment is usually produced at the expense of budget funds, but in conditions permanent growth State debt The state can resort to refinancing, that is, to the repayment of the old state debt by issuing new loans. Refinancing was repeatedly used in our country, in particular, when repaying the debt under the state three-percentage internal winning loan of 1966, as well as the issuance of the Treasury commitments of the state in the mid-1950s. Refinancing is used when paying interest and repayment on the outer part of public debt.
Prior to the introduction of the budget code of the Russian Federation, such methods of public debt management, as conversion, consolidation, unification, delay, were used.
Conversion - a change in the size of the loan yield, such as a decrease or increase in the interest rate of the income paid by the state to its creditors.
The state is interested in obtaining loans for long terms. An increase in the term of the already issued loans is called consolidation of public debt.
Together with consolidation, unification of loans can also be carried out, that is, the combination of several loans in one.
Dealting loan repayment or all previously issued loans is carried out under conditions when the further active development of operations for the release of new loans is inefficient for the state.
Under the cancellation of public debt means a state refusal from debt obligations.
Currently, legislation provides for debt restructuring (Article 105).
The existence of public debt automatically implies the duty of the state in its management. Under the management of public debt understands the aggregate of the state's actions represented by its authorized bodies for regulating the magnitude, structure and cost of servicing public debt.
The concept of public debt management can be considered broadly and narrow senses.
Management of public debt in a broad sense suggests:
- a) the formation of policies for public debt;
- b) determining the main indicators and marginal values \u200b\u200bof state debt;
- c) establishing the main directions of impact on micro and macroeconomic indicators;
- d) allocating the priorities of the use of attracted resources, etc.
The definition of public debt policies and its upper limit establish the legislative authorities, and the operational management of them performs the executive.
The government debt management in a narrow sense implies the definition of the conditions of production, circulation and repayment of specific government securities.
An even narrower interpretation of public debt management implies the regulation of the composition and structure of the aggregate public debt in its unchanged value. In its framework, the objects of regulation are:
- a) the structure of the timing of the circulation of various debt obligations;
- b) the structure of creditors (by issuing a non-market loan intended for certain groups of creditors).
The goal of public debt management is to find the optimal relationship between the needs of the state in additional financial resources and the costs of attracting, maintaining and repaying them.
The basis of public debt management is the following principles:
- 1) unconditionally - ensuring accurate and timely fulfillment of the obligations of the state to investors and creditors without issuing additional conditions;
- 2) the unity of accounting - accounting in the process of managing the public debt of all types of securities issued by the federal authorities, the authorities of the constituent entities of the Federation and local governments;
- 3) the unity of debt policies - ensuring a single approach in the public debt management policy on the part of the Federal Center in relation to the subjects of the Federation and municipalities;
- 4) consistency - the creation of the highest possible harmonization of the interests of creditors and the borrowing state;
- 5) reduction of risks - the fulfillment of all necessary actions to reduce both the risks of the lender and the risks of the investor;
- 6) optimality - the creation of such a structure of state loans, in which the fulfillment of obligations on them would be associated with minimal cost and minimal risk, and also had the lowest negative impact on the country's economy;
- 7) publicity - providing reliable and timely information about the loan parameters by all users interested in it.
Excessive growth of public debt carries a threat to economic security Countries and stability of the budget system.
In this regard, it should also be borne in mind that the public debt management system for its political and economic essence should include:
- a) determining the purpose and validity of government borrowing;
- b) minimization of the value of the debt for the borrower;
- c) effective use, accounting and control over the expenditure of attracted resources;
- d) strengthening the investment nature of loans;
- e) ensuring the timely return of the loans received.
This implies the formation unified system Management of public debt, including accounting of loans of the subjects of the Federation, the external debt of banks and other corporate borrowing.
The ideal way to maintain and repay public debt is the timely refund of the loan received and interest on it. However, the borrower's intentions do not always coincide with real possibilities. Certain difficulties may appear due to economic, social or political difficulties, as well as unforeseen circumstances in the form of disaster, disasters or instability in the state. There is a need for a deferment of interest payments or paying the principal amount of debt, changing the conditions of the loan, and sometimes a complete abandonment of payments. An explicit sign of the debt crisis is a serious violation of the payment schedule. The borrower is forced to resort to various debt management methods.
Public debt management is carried out using the following methods:
- a) refinancing;
- b) conversion;
- c) consolidation;
- d) innovations;
- e) unification;
- e) delay;
- g) securitization;
- h) cancellation.
Refinancing is the repayment of old debt (and percent on it) by issuing a new loan, adopting new commitments. Three ways of refinancing public debt are used:
- 1) replacement of obligations (with the consent of their holders) with expired terms repayment to new, in terms of equivalent to repayment;
- 2) the early replacement of one obligations to others with longer repayment periods;
- 3) Placement (sale) of new bonds and due to the reserved funds redemption of bonds with expired maturity.
Conversion - the use of various mechanisms that ensure the replacement of public debt with other types of liabilities, less burdensome for the economy of the debtor. The most common types of conversion are the exchange of debt on shares (property), the exchange of debt on goods, the exchange of debt for environmental protection measures, the return purchase of debt by the borrower on special conditions (with a discount), the debt conversion in debt obligations of third countries, and others.
Consolidation is a revision of debt repayment conditions, which can be implemented either by changing the consideration of current debt (restructuring) or by refinancing existing debt. Restructuring - 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 of obligations. In other words, restructuring is a compilation of a new, more profitable debt schedule for the debtor than is provided for by the initial agreement. It is usually provided grace periodWhen only interest is paid, as well as the payment period of the principal debt. There is a transfer to a later date of payments for short-term debts. The restructuring of external debt can be carried out with a partial write-off (reduction) of the amount of the principal debt. The basis for writing off the lender of debt obligations is fully or more likely to be a very low probability, or rather, the practical absence of debt repayment opportunities due to a decrease in the cost of real assets
Novation - agreements between the borrower and creditors to replace the obligations under the same loan agreement.
Unification of loans is a combination of several loans to one, when bonds of previously issued loans exchange on the bonds of a new loan. It can be done with consolidation and conversion or without them.
A loan repayment is that, as in consolidation, the duration of the loan repayment and, in addition, the payment of income ceases.
Securitization - reissue of non-market loans in securities freely accessing financial markets.
Cancellation - Refusal to all obligations on previously issued loans. But the use of this method leads to the application of irreparable damage to the reputation of the state as a borrower among potential investors and lenders.
Public debt management is a continuous process comprising 3 stages. At the 1st stage, the limit dimensions of government borrowing and guarantees for the next budget year are determined, the tools of attracting resources are selected and improving the efficiency of their use. At the 2nd stage, resources are involved in external or domestic financial markets by: the issue and placement of government securities, a loan or provision state guaranteesand then these funds are sent to financing the current budget spending or investment projects. The 3rd stage is the search for sources of financial resources to repay and serving public debt, reducing total costs, timely implementation of debt obligations. State debt obligations are repaid at the expense of budget revenues, the country's gold reserves, funds received from the sale state owned, as well as new borrowing.
External debt management is one of the elements of the macroeconomic policy of the state. On the one hand, the effective use of external debt can be a powerful factor in economic growth, allowing to attract additional financial resources. Sustainable position of the country in the international capital market, timely execution of debt obligations contribute to strengthening its international authority and provide an additional inflow of investments on more favorable conditions. In addition, the confidence in its currency increases, foreign trade relations are strengthened. On the other hand, the crisis of external debt can become a serious negative factor not only economic, but also political importance.
