Borrowing funds by budgets of different levels lead to the formation, respectively state and municipal debt- the accumulated debt of the Russian Federation, constituent entities of the Russian Federation and municipalities, subject to repayment in the form of the principal debt and interest accrued on it.
The debt can be formalized in securities or be defined in an agreement between the borrower represented by the relevant executive body of state power or local government, on the one hand, and the investor, on the other hand.
State debt of the Russian Federation represents debt obligations of the Russian Federation to individuals and legal entities, foreign states, international organizations and other subjects of international law.
The state debt of the Russian Federation is secured by all federal property that makes up the state treasury.
The state debt of the Russian Federation includes debt obligations in the following forms:
1) credit agreements and agreements concluded on behalf of the Russian Federation with credit institutions, foreign states and international financial organizations;
2) government securities issued on behalf of the Russian Federation;
3) agreements on the provision of state guarantees of the Russian Federation, contracts of surety of the Russian Federation to ensure the fulfillment of obligations by third parties;
4) reissued debt obligations of third parties into the state debt of the Russian Federation on the basis of the adopted federal laws;
5) agreements and treaties, including international ones, concluded on behalf of the Russian Federation, on the prolongation and restructuring of debt obligations of previous years.
Debt obligations of the Russian Federation are subdivided into short-term (up to one year), medium-term (from one year to five years) and long-term (from five to 30 years). They are repaid within the terms determined by the specific terms of the loan and cannot exceed 30 years.
Changes in the conditions of the state loan issued into circulation, including the timing of payment and the amount of interest payments, the circulation period, is not allowed.
State debt of a constituent entity of the Russian Federation - it is a set of debt obligations of a constituent entity of the Russian Federation, secured by all property owned by a constituent entity of the Russian Federation that makes up its treasury.
Debt obligations of a constituent entity of the Russian Federation exist in the form:
1) credit agreements and contracts concluded on behalf of the constituent entity of the Russian Federation with individuals and legal entities, credit institutions, foreign states, international financial organizations;
2) government loans of a constituent entity of the Russian Federation, carried out by issuing securities of a constituent entity of the Russian Federation;
3) agreements on the provision of state guarantees of the constituent entity of the Russian Federation, contracts of surety of the constituent entity of the Russian Federation to ensure the fulfillment of obligations by third parties;
4) re-registration of debt obligations of third parties into the state debt of a constituent entity of the Russian Federation on the basis of the adopted laws of the constituent entity;
5) agreements and contracts, including international ones, concluded on behalf of a constituent entity of the Russian Federation, on the prolongation and restructuring of debt obligations of constituent entities of previous years.
Debt liabilities of a constituent entity of the Russian Federation are repaid within a period determined by the terms of borrowing and cannot exceed 30 years.
The forms and types of government securities issued on behalf of a constituent entity of the Russian Federation, the conditions for their issue and circulation are determined by the relevant state authorities of the constituent entities of the Russian Federation.
Municipal debt consists of a set of debt obligations of the municipality. It is provided with all municipal property that makes up the municipal treasury.
Debt obligations of the municipality exist in the form:
1) credit agreements and contracts concluded by the municipality;
2) loans of the municipality, carried out by issuing securities on behalf of the municipality;
3) contracts for the provision of municipal guarantees, contracts of surety of the municipal formation to ensure the fulfillment of obligations by third parties;
4) debt obligations of legal entities reissued into municipal debt on the basis of legal acts of local governments.
To conduct an effective financial policy in the field of state and municipal borrowing, the process of managing state and municipal debt is of particular importance. The management of the state debt of the Russian Federation is carried out by the Government of the Russian Federation, the management of the state debt of the constituent entity of the Russian Federation is carried out by the executive authority of the constituent entity of the Russian Federation. Municipal debt management is carried out by the authorized local government body.
The Russian Federation is not responsible for debt obligations of the constituent entities of the Russian Federation and municipalities, if such obligations were not guaranteed by the Russian Federation. The constituent entities of the Russian Federation and municipalities are not liable for each other's debt obligations, if such obligations were not guaranteed by them, as well as for the debt obligations of the Russian Federation.
When a financial crisis occurs, it becomes necessary to restructure the debt.
Restructuring - this is the repayment of debt obligations with the simultaneous implementation of borrowings or the adoption of other debt obligations in the amount of debt obligations to be repaid with the establishment of other terms of service and maturity dates. Debt restructuring can be carried out with partial write-off or reduction of the principal amount.
In order to regulate the size of public debt, it is established limiting volume. the volumes of the state internal debt and external debt for the next financial year are approved by the federal law on the federal budget with a breakdown of the debt according to the forms of securing obligations. The law of a constituent entity of the Russian Federation on the budget, a legal act of a local government body on the local budget establishes an upper limit for the debt of a constituent entity of the Russian Federation, municipal debt. The maximum amount of the state debt of a constituent entity of the Russian Federation, municipal debt cannot exceed the volume of revenues of the corresponding budget, excluding financial assistance from the budgets of other levels of the budgetary system of the Russian Federation.
State debt- the result of financial borrowing by the state, carried out to cover the budget deficit. Public debt is equal to the sum of the deficits of previous years, taking into account the deduction of budget surpluses.
Public debt is made up of debts of the central government, regional and local governments, as well as debts of all corporations with state participation, in proportion to the state's share in the share capital of the latter
The general concept of the state (public) debt of the Russian Federation, its composition, management principles and service procedure are formulated and legislatively enshrined in Budget Code of the Russian Federation.
Depending on the borrower, the public debt is subdivided into public debt of the Russian Federation, public debt of a constituent entity of the Russian Federation and municipal debt.
Under government debt of the Russian Federation means its debt obligations to individuals and legal entities, foreign states, international organizations and other subjects of international law. The state debt of the Russian Federation is fully and unconditionally secured by all federal property that makes up the state treasury.
Under public debt of a constituent entity of the Russian Federation means the totality of its debt obligations; it is fully and unconditionally provided with all property owned by the subject, which makes up his treasury.
Under municipal debt accordingly, the aggregate of the debt obligations of the municipality is understood; it is fully and unconditionally provided with all the property that makes up the municipal treasury. Moreover, each budget level is responsible only for its obligations and is not responsible for the debts of other levels, if they were not guaranteed to them. To pay off their obligations and service the debt, the legislative and executive bodies of the corresponding level use all powers.
According to the Budget Code of the Russian Federation depending on the currency of the arising obligations, there are internal and external debt.
Under domestic public debt liabilities expressed in the currency of the Russian Federation are understood. Foreign currency, conventional monetary units and precious metals can only be indicated as an appropriate clause. They must be paid in Russian currency.
Under external public debt liabilities arising in foreign currency are understood.
Depending on the maturity and the volume of obligations, they allocate capital and current government debt.
Under capital government debt understand the entire amount of issued and unpaid debt obligations of the state, including the accrued interest on these obligations.
Under current government debt understand the costs of paying income to creditors on all debt obligations of the state and on the repayment of obligations, the due date of which has come.
Debt obligations of the Russian Federation may exist in the form of:
- credit agreements and contracts concluded on behalf of the Russian Federation with credit institutions, foreign states and international financial organizations in favor of the said creditors;
- government securities issued on behalf of the Russian Federation;
- agreements on the provision of state guarantees of the Russian Federation, agreements of surety of the Russian Federation to ensure the fulfillment of obligations by third parties;
- re-registration of debt obligations of third parties into the state debt of the Russian Federation on the basis of the adopted federal laws;
- agreements and treaties, including international ones, concluded on behalf of the Russian Federation, on the prolongation and restructuring of debt obligations of the Russian Federation of previous years.
Debt obligations of the Russian Federation may be short-term(up to one year), medium-term(from one to five years) and long-term(from five to 30 years old). Debt liabilities are repaid within the terms that are determined by the specific terms of the loan. For debt obligations of the Russian Federation and its constituent entities, the maturity period cannot exceed 30 years, and for the obligations of a municipal formation - 10 years.
Debt obligations of the constituent entities of the Russian Federation and municipalities may exist in such forms, with the exception of international agreements and contracts at the level of municipal formation. All these forms are used quite actively in market practice.
Loan agreements and contracts in the system of state credit, they are primarily concluded with credit institutions of various kinds, as a rule, commercial banks. Subjects of the Federation and municipalities most often resort to their services.
Traditionally, loans to the Government of the Russian Federation were provided The central bank, which used its own funds, reserve funds of banks, as well as deposits of the population in the institutions of the Sberbank of the Russian Federation in volumes determined by annual agreements as credit resources.
However, with the adoption of a new revision Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)", The Central Bank is not entitled to provide loans to finance state and local budgets, as well as budgets of state extra-budgetary funds.
- check the execution of the budget of the constituent entity of the Russian Federation;
- budget execution can be transferred under the control of the RF Ministry of Finance;
- may resort to other measures included in the budgetary legislation of the Russian Federation.
The debt of a constituent entity of the Russian Federation is repaid within a certain time period provided for by the terms of the loan, and cannot be more than 30 years.
The Budget Code establishes that the executive bodies of the constituent entity of the Russian Federation have all the powers to form cash receipts to the budget of the constituent entity and in order to pay off their debts and funds for.
The state debt is managed by the executive body of the constituent entity of the Russian Federation. This provision is stipulated by the RF budget code. The Budget Code does not provide a clear definition of debt management.
Analysis of the state debt of a constituent entity of the Russian Federation
If we rely on a theory that reveals the content of this concept, then the structure of the state debt of a constituent entity of the Russian Federation includes the following actions:
1) The current state and forecast for the forthcoming period of the public debt is assessed, taking into account the determination of indicators, according to which the amount of debt repayment and servicing is determined.
2) The volume, form and conditions of borrowing funds from the state by a constituent entity of the Russian Federation are determined. Loans are registered in a specific order.
3) Establishment of the scope and conditions for the provision of state guarantees of a constituent entity of the Russian Federation in a certain order.
4) Establishing financial control over the receipt of government loans, repayment and servicing of government debt.
5) Preparation and implementation of actions to improve the structure of public debt, including those belonging to the state, restructuring of public debt, risk management of public loans.
The Budget Code of the Russian Federation is structured taking into account that the Russian Federation is not responsible for the debt obligations of the constituent entities of the Russian Federation, if a guarantee for these obligations was not given to the Russian Federation. Subjects of the Russian Federation and municipal structures are not responsible for their debt obligations if they have not issued a guarantee for them. Repayment and servicing of an internal loan taken from the state is carried out in accordance with the federal laws of a constituent entity of the Russian Federation.
Public debt repayment includes the following provisions:
a) return of the sum of money borrowed from the city;
b) return of the amount borrowed on loans;
c) repayment of the main debt on budget loans and budget lending received by the city from financial sources of other levels.
Repayment and servicing of public debt
The public debt service is carried out at the expense of reimbursable expenses of the city's budgetary funds associated with the fulfillment of debt obligations. Current expenses include:
a) payment of interest in accordance with the state loan agreement;
b) payment of tax for transactions with valuable government securities;
c) other expenses covering the organization, support for the emergence and fulfillment of obligations to repay the debt.
The repayment and servicing of the public debt is carried out in accordance with the financial authorities.
The repayment of the public debt is taken into account in the sources of financing the budget deficit funds by reducing the amount of financial receipts to repay the deficit. The exception is for state guarantees, for which the guarantee payments made lead to the emergence of equivalent claims on the part of the city in relation to the debtor who has not fulfilled the obligation given in the guarantee.
Fulfillment of obligations under state guarantees, for which payments lead to the emergence of equivalent claims from the city to the debt owed, were identified as part of the expenditure of budgetary funds as the provision of budgetary lending. All expenses related to debt coverage to the state are identified in the city budget as expenses for servicing the city's debt.
The structure of the state debt of a constituent entity of the Russian Federation involves the establishment of order and reflection in the budgets of the receipt of funds from loans and other debts. They are reflected in the budget as sources of covering the budget deficit.
All expenses for payments on debt obligations, including (the difference between the cost of placement and the cost of repayment for valuable government securities of a constituent entity of the Russian Federation) - are reflected in the budget as expenses for servicing the debt.
The state debt of a constituent entity of the Russian Federation involves the process of restructuring and termination of debt obligations by mutual agreement of the parties. Restructuring is carried out through partial write-off or reduction of debt.
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Concluded by the Russian Federation with credit institutions, foreign states and international financial organizations, in favor of the indicated creditors;
b) government securities issued on behalf of the Russian Federation;
c) agreements on the provision of state guarantees of the Federation, agreements of surety of the Federation to ensure the fulfillment of obligations by third parties;
d) re-registration of debt obligations of third parties into the state debt of the Federation on the basis of the adopted federal laws;
e) agreements and treaties, including international ones, concluded on behalf of the Russian Federation, on the prolongation and restructuring of debt obligations of the Russian Federation of previous years.
Debt liabilities by the terms of existence can be:
- short-term (up to one year);
- medium-term (from one to five years);
- long-term (from five to 30 years).
In accordance with the decree of the Government of the Russian Federation "On the Unified System of Public Debt Management of the Russian Federation" dated March 4, 1997, a unified system of public debt management of the Russian Federation is being created in the Ministry of Finance of the Russian Federation to reduce the cost of servicing government borrowings.
State (municipal) debt management is understood as a set of financial measures of the state (local authorities) to repay loans, organize income payments on them, change the conditions and terms of previously issued loans, as well as place new debt obligations. Among such financial measures, the following are most common in world practice:
- refinancing - issuing new loans to cover previously issued debt obligations;
- conversion - a change in the size of the loan yield (can be carried out both downward and upward in the interest rate of income);
- Consolidation - a change in the terms of validity of previously issued loans (in accordance with Art.817 of the Civil Code of the Russian Federation, changes in the conditions of a loan issued into circulation are not allowed, therefore, if consolidation is necessary, this can be done only by agreement with creditors, i.e. with legal entities and individuals who are rightholders of state (municipal) bonds; in this case, it is customary to be guided by Articles 414 and 818 of the Civil Code of the Russian Federation on innovation - termination of the obligation by agreement of the parties to replace the original obligation that existed between them with another obligation between the same persons providing for a different subject or method of execution);
- unification - exchange of several previously issued loans for one new one;
- the cancellation of the state internal debt, i.e., the complete abandonment of debt obligations (as a rule, this is an extreme measure in the management of domestic debt).
In a financial crisis, there is a need for debt restructuring.
The issue of government securities of the Russian Federation, constituent entities of the Russian Federation and municipalities is carried out in accordance with the decision of the Government of the Russian Federation, as well as the decision of the executive authorities of the constituent entities of the Russian Federation and local authorities, respectively, taking into account the maximum volumes of the budget deficit and state and municipal debt. In addition, the decision to issue government securities of the Russian Federation is made in accordance with the Program of State Foreign Borrowings of the Russian Federation. This decision states:
- information about the issuer;
- the volume and conditions of the issue;
The issue of government securities of the constituent entities of the Russian Federation, as well as municipal securities, is subject to registration with the Ministry of Finance of the Russian Federation. The procedure for the issue, circulation and redemption of government securities of the Russian Federation, constituent entities of the Russian Federation and municipalities is regulated by the federal law on the specifics of the issue and circulation of government and municipal securities.
The issue of state and municipal securities is possible only if the following indicators are approved by federal law, the law of a constituent entity of the Russian Federation or a decision of a local government body on the budget of the corresponding level for the current financial year:
- the maximum amount of the corresponding state or municipal debt;
- the maximum amount of borrowed funds allocated by the Russian Federation, a constituent entity of the Russian Federation or a municipal formation during the current financial year to finance the budget deficit of the corresponding level;
- the cost of servicing the relevant government or municipal debt in the current financial year.
At the same time, the maximum amount of borrowed funds allocated by the constituent entity of the Russian Federation and the municipality during the current financial year to finance the budget deficit of the corresponding level should not exceed:
- for a constituent entity of the Russian Federation - 30% of the volume of budget revenues of a constituent entity of the Russian Federation for the current financial year, excluding financial assistance from the federal budget and borrowed funds attracted in the current financial year;
- for a municipal entity - 15% of the volume of local budget revenues for the current financial year, excluding financial assistance from the federal budget and the budget of the constituent entity of the Russian Federation, as well as excluding borrowed funds attracted in the current financial year.
The maximum volume of expenditures for servicing the state debt of a constituent entity of the Russian Federation or municipal debt in the current financial year should not exceed 15% of the volume of budget expenditures of the corresponding level.
If, in the execution of the budget of the constituent entity of the Russian Federation or the local budget, the costs of servicing the state debt of the constituent entity of the Russian Federation or municipal debt exceed 15% of the costs of each of the respective budgets, as well as in case of exceeding the maximum amount of borrowed funds, and at the same time the constituent entity of the Russian Federation or the municipality is not able to provide servicing and repayment of its debt obligations, an authorized government body of the Russian Federation or a government body of a constituent entity of the Russian Federation may apply the following measures:
- appoint an audit of the budget of the constituent entity of the Russian Federation or the local budget;
- transfer the execution of the budget of the constituent entity of the Russian Federation or the local budget under the control of the Ministry of Finance of the Russian Federation or the body executing the budget of the constituent entity of the Russian Federation, respectively;
- take other measures provided for by the budgetary legislation of the Russian Federation.
Domestic loans are issued in national currency, external - in the currency of other states and are placed on foreign stock markets.
In accordance with Art. 89 of the Budget Code of the Russian Federation, state external borrowings of the Russian Federation are loans attracted from individuals and legal entities, foreign states, international financial organizations in foreign currency, for which debt obligations of the Russian Federation arise as a borrower or guarantor of repayment of loans by other borrowers, denominated in foreign currency.
State internal borrowings of the Russian Federation are loans attracted from individuals and legal entities, foreign states, international financial organizations in the currency of the Russian Federation, for which debt obligations of the Russian Federation arise as a borrower or guarantor of repayment of loans by other borrowers, denominated in the currency of the Russian Federation.
The borrowed funds of the Russian Federation are mobilized in two ways:
a) placement of securities;
b) obtaining loans from specialized financial and credit institutions.
The procedure for the issue and placement of securities is regulated by the Federal Law "On the Specifics of the Issue and Circulation of State and Municipal Securities" dated July 29, 1998 No. 136-FZ. In accordance with this Law, federal government securities are securities issued on behalf of the Russian Federation.
Obligations of the Russian Federation, a constituent entity of the Russian Federation, arising as a result of the issue of securities and constituting the internal debt, must be expressed in the currency of the Russian Federation and are payable in the currency of the Russian Federation. Foreign currency, conventional monetary units and precious metals can be indicated in the General Conditions for the Issue and Circulation of Government Securities, as well as in the details of certificates as an appropriate clause, on the basis of which the amount of payment for these government securities is determined.
Obligations of the Russian Federation and the constituent entity of the Russian Federation arising from the issue of government securities and constituting the external debt of the Russian Federation and the constituent entity of the Russian Federation must be expressed in foreign currency and are payable in foreign currency.
The Russian Federation has a unified system of accounting and registration of state borrowings of the Russian Federation. Maintaining state books of the internal and external debt of the Russian Federation is entrusted to the Ministry of Finance of the Russian Federation. Information about the borrowings of a constituent entity of the Russian Federation or a municipality is entered into the debt book of the constituent entity of the Russian Federation or the municipal debt book, respectively.
Domestic government debt represents the entire amount of previously issued and so far outstanding government loans, together with interest. On the domestic securities market, the Russian Federation is the largest borrower. The state's debt on GKO - OFZ as of June 1, 1998 amounted to 435.3 billion rubles.
GKO short-term (zero-coupon) government bonds were first issued in the Russian Federation in 1993. GKOs are issued for three and six months. They are sold at a discount, repayment is always made at par. T-bills can be sold ahead of maturity on the secondary securities market. OFZ federal loan bonds with a variable coupon have been issued since June 14, 1995. OFZs can be medium-term or long-term. Issued in documentary form with mandatory centralized storage. OFZ owners can be Russian and foreign legal entities and individuals. OVVZ bonds of the domestic foreign currency loan were issued on May 14, 1993 in five tranches with maturities of 1, 3, 6, 10, 15 years for a total amount of 7,885 million US dollars in order to provide the conditions necessary for the settlement of the domestic foreign currency debt, as well as for fulfillment of the Decree of the President of the Russian Federation of December 7, 1992 "On measures to settle the internal foreign exchange debt of the former USSR". The currency of the loan is US dollars.
In accordance with the Decree of the President of the Russian Federation "On some measures to streamline the work with the external and internal foreign exchange debt of the Russian Federation" in 1996, the Government of the Russian Federation carried out an additional issue of OVVZ in the amount of USD 350 million to pay off the domestic foreign exchange debt, which was not taken into account when determining the initial foreign currency bonded loan, on the terms approved by the RF Government decree of March 15, 1993. The maturity of the 1996 bonds is 10 and 15 years.
In addition, the following products are produced in the Russian Federation:
- bonds of the state savings loan - by the Ministry of Finance of the Russian Federation since 1995 - which are government bearer securities, the owners of which can be Russian and foreign individuals and legal entities;
- bonds of state non-market loans (OGNZ) - by the Ministry of Finance of the Russian Federation since 1996 - which may be owned by Russian and foreign legal entities.
In addition, gold certificates of 1993 (issued by the Ministry of Finance of the Russian Federation) with a face value of 10 kg of gold of sample 0, 9999 were issued in the territory of the Russian Federation as debt obligations guaranteed by the Government of the Russian Federation, as well as in 1994 treasury bills in the amount of 1,100 billion rubles ... (non-denominated) and treasury bills (issued by the Ministry of Finance of the Russian Federation).
The external debt of Russia as of January 1, 1999 was $ 140.8 billion. It includes:
- government debt to foreign governments and debt obligations guaranteed by foreign governments;
- external debt to foreign commercial banks;
- debt of foreign trade associations for centralized import supplies, formed before 1991
Eriashvili N.D. Financial right. 2000
Public debt as an economic category is a certain system of relations that arises between government bodies, on the one hand, private individuals, non-state institutions, foreign states - on the other, regarding the formation and repayment of debts of public administration bodies arising as a result of the formation of additional state funds ...
From the point of view of material content, the state debt acts as the sum of the state's debt obligations on issued and outstanding state loans, loans received and interest on them, guarantees issued by the state to individuals and legal entities, foreign states, international organizations and other subjects of international law, arising as a result of government borrowings of the Russian Federation.
There are several classifications of the State Dane, depending on the attribute underlying this classification.
Depending on the borrower, public debt is subdivided into:
the state debt of the Russian Federation;
public debt of a constituent entity of the Russian Federation;
municipal debt.
The state debt of the Russian Federation is understood as its debt obligations to individuals and legal entities, foreign states, international organizations and other subjects of international law. The state debt of the Russian Federation is fully and unconditionally secured by all federal property that makes up the state treasury.
The state debt of the Russian Federation is secured by all federal property that makes up the state treasury.
The state debt of the Russian Federation includes debt obligations in the following forms:
- 1) credit agreements and agreements concluded on behalf of the Russian Federation with credit institutions, foreign states and international financial organizations;
- 2) government securities issued on behalf of the Russian Federation;
- 3) agreements on the provision of state guarantees of the Russian Federation, agreements of surety of the Russian Federation to ensure the fulfillment of obligations by third parties;
- 4) reissued debt obligations of third parties into the state debt of the Russian Federation on the basis of the adopted federal laws;
- 5) agreements and treaties, including international ones, concluded on behalf of the Russian Federation, on the prolongation and restructuring of debt obligations of previous years.
The public debt of a constituent entity of the Russian Federation is a set of debt obligations of a constituent entity of the Russian Federation. It is fully and unconditionally provided with all property owned by the constituent entity of the Russian Federation that makes up the treasury of the constituent entity of the Russian Federation. The volume of the state debt of a constituent entity of the Russian Federation includes: the nominal amount of debt on securities of a constituent entity of the Russian Federation; the amount of the principal debt on loans received by the constituent entity of the Russian Federation; the amount of the principal debt on budget loans and budget loans received by the constituent entity of the Russian Federation from the budgets of other levels; the amount of obligations under state guarantees provided by the constituent entity of the Russian Federation.
Debt obligations of a constituent entity of the Russian Federation exist in the form:
- 1) credit agreements and contracts concluded on behalf of the constituent entity of the Russian Federation with individuals and legal entities, credit institutions, foreign states, international financial organizations;
- 2) government loans of the constituent entity of the Russian Federation, carried out by issuing securities of the constituent entity of the Russian Federation;
- 3) agreements on the provision of state guarantees of the constituent entity of the Russian Federation, contracts of surety of the constituent entity of the Russian Federation to ensure the fulfillment of obligations by third parties;
- 4) re-registration of debt obligations of third parties into the state debt of the constituent entity of the Russian Federation on the basis of the adopted laws of the constituent entity;
- 5) agreements and treaties, including international ones, concluded on behalf of a constituent entity of the Russian Federation, on the prolongation and restructuring of debt obligations of constituent entities of previous years.
Debt obligations of the constituent entities of the Russian Federation are repaid within the time frame determined by the terms of borrowing and cannot exceed 30 years.
The forms and types of government securities issued on behalf of the constituent entity of the Russian Federation, the conditions for their issue and circulation are determined by the relevant state authorities of the constituent entities of the Russian Federation.
Municipal debt is a set of debt obligations of a municipality. It is provided with all municipal property that makes up the municipal treasury. Debt obligations of the municipality can exist in the form of credit agreements and contracts; loans carried out by issuing municipal securities; agreements and agreements on obtaining budget loans and budget loans from budgets of other levels of the budget system, agreements on the provision of municipal guarantees.
The volume of municipal debt includes: the nominal amount of debt on municipal securities; the amount of debt on loans received by the municipality; the amount of debt on budget loans and budget loans received by the municipality from the budgets of other levels; the amount of obligations under municipal guarantees provided by the municipality.
Local governments use all their powers to generate local budget revenues to pay off their debt obligations and service debt. Debt liabilities of the municipality are repaid in terms that are determined by the terms of borrowing and cannot exceed 10 years. Each budget level is responsible only for its obligations and is not responsible for the debts of other levels, if they were not guaranteed to them.
The Russian Federation is not responsible for debt obligations of the constituent entities of the Russian Federation and municipalities, if such obligations were not guaranteed by the Russian Federation. The constituent entities of the Russian Federation and municipalities are not liable for each other's debt obligations, if such obligations were not guaranteed by them, as well as for the debt obligations of the Russian Federation.
In terms of terms, government debt obligations can be short-term (up to 1 year), medium-term (over 1 year to 5 years) and long-term (over 5 and up to 30 years). Debt obligations of the Russian Federation are repaid within the terms determined by the specific terms of the loan. Changing the conditions of a state loan already issued into circulation - the repayment period, the amount of interest payments, the circulation period - is not allowed.
According to the currency criterion, it is divided into internal and external: ruble debts refer to internal debt, and foreign currency - to external.
Domestic public debt is the amount of debt on issued and securities outstanding government securities placed on the territory of the Russian Federation, including the costs of repayment and payment of large income.
The volume of the state internal debt of the Russian Federation includes:
- 1) the nominal amount of debt on government securities of the Russian Federation, the obligations for which are denominated in the currency of the Russian Federation;
- 2) the amount of the principal debt on loans received by the Russian Federation and the obligations for which are expressed in the currency of the Russian Federation;
- 3) the amount of the principal debt on budget loans received by the Russian Federation;
- 4) the amount of obligations under state guarantees denominated in the currency of the Russian Federation;
- 5) the amount of other (except for the specified) debt obligations of the Russian Federation. ...
Domestic debt obligations can be divided into two groups:
Market, existing in the form of equity securities (GKO - short-term government bonds, OFZ - federal loan bonds, OGSZ - government savings loan bonds and other securities);
Bonds are the most common type of securities. It represents a government debt and entitles its owner, after a certain period of time, to receive a reverse amount with interest. Bonds are debt obligations of the state, local governments and organizations, usually issued in large quantities. They are evidence that the issuing authority is a debtor and undertakes to pay the bondholder within a certain time interest on it, and upon maturity, to repay its debt to the bondholder. In any case, the bond is debt, and its holder is the creditor (and not the co-owner, like a shareholder).
Non-market ones, issued to finance the resulting budget arrears (bills of the Ministry of Finance of the Russian Federation, arrears to the Central Bank of the Russian Federation, etc.).
The second form of public debt, external debt, is debt in the form of an outstanding foreign currency loan with unpaid interest on the loan.
The volume of the state external debt of the Russian Federation includes:
- 1) the nominal amount of debt on government securities of the Russian Federation, obligations for which are denominated in foreign currency;
- 2) the amount of the principal debt on loans received by the Russian Federation and obligations for which are denominated in foreign currency, including for targeted foreign loans (borrowings) attracted under state guarantees of the Russian Federation;
- 3) the amount of obligations under state guarantees of the Russian Federation, expressed in foreign currency.
Depending on the maturity and the volume of obligations, there are:
- - capital government debt;
- - current government debt;
Capital public debt is understood as the total amount of issued and outstanding government debt obligations, including accrued interest on these obligations.
The current public debt is understood as the cost of paying income to creditors on all debt obligations of the state and on the repayment of obligations that are due.
Accordingly, public debt can be internal and external. Public domestic debt is liabilities arising to domestic creditors, and public external debt is liabilities arising to foreign creditors.
From all of the above, we can conclude that the division into internal and external debt should be based only on the attribute of the source of borrowing (national or external financial market).
