Which involves servicing the public debt. The public debt of the Russian Federation, the cost of servicing the public debt of the Russian Federation
Public debt as a financial category should be considered in two aspects: active, when the state plays the role of a creditor, and passive, when it acts as a borrower. bank loan currently, in financial practice, a state loan is a loan provided by the state. As for the loan that the state receives, it is defined as government loans that lead to education public debt.
The mobilization of huge financial resources results in an ever-accelerating increase in government debt. Public debt (or debt; means the entire amount of issued but unpaid government leases with accrued interest to be paid.
The historical development of public debt in capitalist countries shows that the growth of public debt is mainly due to an increase in military spending. In the period after World War II, public debt arose due to the constant increase in the cost of intervention in the economy. One of the reasons for this is the nationalization of industries and banks in a number of capitalist countries, since their owners, as compensation for receiving government bonds, generate a fixed income.
Credit relations exist not only within each country, but between states as one of the forms of capital export. Hence, international credit is the movement of loan capital in the field of international economic relations. Therefore, external debt as a result of international credit relations included in the debt of states. In capitalist financial practice, several concepts of debt are used: public debt, central government debt, often called public debt, debt local authorities power and debts of state enterprises.
The national debt includes the debt of the central government [internal and external), the debt of local authorities. public corporations, enterprises and other debts. The ratio of these parts of the debt reflects the peculiarities of the historical development of the capitalist countries. However, the trend v. centralization of financial resources, inherent in state-monopoly capitalism, manifests itself in the sphere of public debt.
The main type of national debt is the debt of the central government
Public debt management is a focus state regulation in the context of chronic budget deficits, a huge increase in government debt, when the impact of government credit on the loan capital market sharply increases. To do this, the central bank uses various methods of servicing public debt:
Buys or sells government bonds;
Changes the price of bonds;
Varies the terms of their sale;
Different ways increases the attractiveness of the latter for private investors.
Volume control credit operations and monetary emission is used primarily to influence economic activity. This direction of monetary regulation is closely related to the first and second. Thus, the regulation of bank liquidity affects the structure bank loans it deposits, amount money supply, the level of the market rate of interest. Public debt management affects the distribution of lending capital between the private and public sectors, the level of interest rates and bank liquidity. Placing government debt in the banking system leads to an increase in money issue, and outside the banking system - to its reduction.
Loans play an especially important role in times of wars, economic crises, when taxes, due to their lack of elasticity, inability to quickly mobilize large financial resources, and exposure to the influence of the conjuncture, lose their usual importance. During these periods, the share of loans is approaching, and sometimes even overlaps with taxes. During the Second World War, for example, in countries such as Great Britain, the USA, Japan, from 30 to 40% of all expenditures that passed through state budgets were financed through loans. The rest of the budget expenditures were covered by taxes and the issue of paper money.
The issuance of loans forms the public debt. The public debt that arises to finance the expenditures of the state budget is the debt of the central government. A characteristic feature of the current period in the evolution of capitalism is the rapid growth of public debt.
In accordance with the Civil Code of the Russian Federation, under a loan agreement, one party (lender) transfers to the ownership of the other party (borrower) money or other things defined by generic characteristics, and the borrower undertakes to return the same amount of money (loan amount) to the lender or an equal number of others received by him things of the same kind and quality. Under contract government loan the borrower is the Russian Federation, constituent entities of the Russian Federation, and the lenders are citizens or legal entities. Government loans are voluntary and changes in the terms of the issued loan are not allowed.
The state's activity as a borrower serves as an indicator of the state of its finances. The greater the amount of borrowing. the worse is the state budget. The higher the share of government debt in GDP, the deeper the crisis in government finances. Russia's huge public debt, both internal and external, is evidence of the country's financial crisis.
In accordance with the Law of the Russian Federation "On the State Internal Debt of the Russian Federation", the state internal debt is understood as the debt obligations of the Government of the Russian Federation to legal entities and individuals. Thus, it is necessary to distinguish between public debt and national debt, which includes the debt not only of the Government of the Russian Federation, but also of the governing bodies of the lower levels that are part of the state.
The state debt of Russia is secured by all assets at the disposal of the Government of the Russian Federation. Debt obligations of the Russian Federation can be in the form of loans received by the government, government loans or other debt obligations guaranteed by the Government.
The public domestic debt consists of the debt of previous years and the newly arisen debt. 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 entities of the Russian Federation and the conditions for their issue are determined independently at the local level.
As noted, depending on the place of placement, loans are divided into two groups: internal and external, which differ in the types of borrowed instruments, terms of placement, the composition of creditors, and the currency of the loan.
The lenders for internal loans are legal entities and individuals who are residents of a given state. Loans are usually provided in national currency... To raise funds, securities are issued that are in demand on the national stock market. Various tax incentives are used to further encourage investors.
Foreign loans are placed on foreign stock markets in the currency of other states. When placing such loans, the specific interests of investors in the country of placement are taken into account.
Lending 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 states, 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 ...
At present, the Russian Federation is a major borrower both domestically and internationally.
About Lending activities of the Russian Federation in the domestic market. IN last years borrowing activities of the Government of the Russian Federation in the market valuable papers is rapidly intensifying, which is explained by the refusal to use loans from the Central Bank to cover the budget deficit. At the same time, highly profitable securities are issued to raise funds.
As a result, a paradoxical situation arose: the most reliable government securities are both the most profitable and, therefore, the most popular. As a result, the bulk of investors' funds involved in securities transactions go not to production, but to finance federal spending and service domestic 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 servicing the state debt indicates that the growth of the state debt of the Russian Federation has become a self-reproducing process.
The state domestic debt of the RF at the beginning of 1995 was estimated at 88,400 billion rubles.
In the past years, loans from the Central Bank of the Russian Federation accounted for the largest share in the financing of the RF Government's debt. At the same time, their share increased. If in 1993 the share of Central Bank loans accounted for 65.2%, then in 1994 - already 67.6%. In 1995, this trend was radically changed. The developed financial policy assumes that new borrowings should be financed entirely from other sources.
The federal budget deficit ceiling planned for the 1996 financial year is 88,550 billion rubles. should be covered by internal sources in the total amount of 5600bn. rubles, which is twice as much as in 1995, and sources outside of it in the total amount of 32450 billion rubles. Therefore, the sector of 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 the volume of the issue, determines the cut-off price, that is, the minimum price admissible from its point of view for the sale of bonds. All applications received for this penalty and above are subject to satisfaction; bids in which lower prices were indicated are not satisfied, that is, they are cut off.
There are two systems of closed auction trading: "American" and "Dutch". According to "American", all orders that are above the cut-off price are satisfied at the prices at which they were submitted. Non-competitive bids are satisfied on a weighted average basis. According to the "Dutch" system, all bids are satisfied at a single minimum acceptable price - the cut-off price. In domestic practice, the "American" system is used when trading T-bills.
The venue for GKO trading sessions was the Moscow Interbank Currency Exchange. Currently, trading platforms have been created in a number of cities. All sales and purchase transactions and settlements are carried out electronically. After the end of the trading session, the data is sent to settlement system where clearing takes place, the obligations of the participants to the exchange and the exchange - to the participants are determined, settlements are made in cash and in the securities depository. The owner of the bond has the right to set off the value of the redeemed T-bills when paying for the purchased T-bills of the next issue.
T-bills are in great demand among investors. The investor's interest in purchasing GKOs is determined by: high reliability of this borrowed instrument; high profitability; high liquidity; tax incentives, since the income on state securities is not taxed by the current tax legislation.
KOs were issued to enterprises entitled to receive funds from the federal budget. Unlike other securities issued exclusively to finance the budget deficit, KOs had another purpose - to mitigate the crisis of mutual non-payments of various sectors of the economy. To this end, the Ministry of Finance of the Russian Federation provided for the owners of CRs to carry out settlements with this security.
OFZ issue is carried out in accordance with the Decree of the Government of the Russian Federation of March 15, 1995 No. 458 "On general conditions for the issue and circulation of bonds federal loan"and" Conditions for the issue of federal loan bonds with variable coupon yield "developed by the RF Ministry of Finance and registered with the RF Ministry of Justice on June 13, 1995 No. 869.
In accordance with these documents, bonds are registered coupon medium-term government securities. The par value of the bonds is one million rubles. The yield on bonds is determined on the basis of the yield on GKOs. Like other securities, OFZs are not paper-based. Operations with them are carried out by making entries on the "Depo" accounts.
In accordance with this decree, the Ministry of Finance of the Russian Federation is allowed to issue in 1995-1998. state savings loan in the amount of up to 10 trillion. rub. ten episodes of 1 trillion. rub. each one. The bond placement began in the fall of 1995.
Savings loan bonds are issued in documentary form, are bearer securities and give their owners the right to receive quarterly income in excess of the yield on other types of government securities. The owners of bonds can be both individuals and legal entities.
The total volume of the issue of savings loan bonds is determined by the Ministry of Finance of the Russian Federation within the limit of the state internal debt established by federal law O federal budget to the appropriate fiscal year.
In order to ensure the sources of covering the federal budget deficit and the efficient use of blocks of shares held by federal property, on August 31, 1995, the President of the Russian Federation issued a Decree * "On the procedure for the transfer in 1995 of shares held by federal property" In accordance with the Decree, in the fourth quarter of 1995, auctions were held for the right to conclude a loan agreement, a pledge of federal-owned shares. The loan agreement is concluded between the Ministry of Finance of the Russian Federation and the winner of the auction. The interest for using the loan is calculated on the amount of the equivalent of the loan granted, expressed in ECU at the rate of LIBOR plus 0.5% per annum for three-month deposits, in effect on the day of the conclusion of the agreement. Repayment is carried out either from the federal budget or through the sale of pledged shares.
On the loans-for-shares auctions shares of the most economically attractive associations were exhibited: the largest oil companies, metallurgical plants, shipping companies, aviation production associations.
Decree of the President of the Russian Federation of September 5, 1995 No. 899 and Resolution of the Government of the Russian Federation of November 5, 1995 No. 1091 "On the Issue of Government Securities Providing the Right of Their Owner to Receive Gold Bars" The Ministry of Finance of the Russian Federation was granted the right to issue government securities, providing for the possibility of their owners to receive gold bars - bonds of the Gold Federal Loan.
The par value of a bond is expressed in rubles and is determined based on the value of 100 grams of gold on the London market precious metals in bullion (second fixing) in US dollars, translated at the official exchange rate of the Central Bank of the Russian Federation as of the date of the commencement of the bond issue. Interest income is equal to the annual US dollar LIBOR rate in effect on the preceding business day prior to the date of its announcement, plus one percent. Interest income is paid once a year at the official exchange rate of the Central Bank of Russia. The bonds mature in three years.
In 1996, the RF Ministry of Finance is to issue bonds of state non-market loans in the amount of 15 trillion rubles. Usually, such bonds are issued to attract funds from large investors such as pension types or insurance companies. They meet the interests of those institutions for which they were issued to the maximum extent.
Heavy financial position RF determines the difficulties with the repayment of external debt obligations. The situation was especially acute in 1992, which saw the peak of payments. It was necessary to pay $ 21 billion. Therefore, in the summer of 1992, the Russian government proposed to its creditors to conclude an agreement on the restructuring of payments, i.e. revise the terms and procedure for paying off debts. In 1993, all payments for 1992-1993 were restructured. Then the negotiations were held annually.
The activity of the Russian Federation as a guarantor is gradually expanding.
The systematic increase in taxes exacerbates the internal contradictions of the capitalist economy, increasing the gap between the purchasing power of the working people and the production possibilities expanding under the influence of scientific and technological progress.
The second most important source of income is government loans. If, before the general crisis of capitalism, loans acted as an extraordinary source of income, to which bourgeois governments resorted to when it was necessary to cover the deficits arising during the execution of the state budget, now they have turned into ordinary income. Various capital costs are covered by loans. In addition, in many countries, budget deficits have begun to be planned during budgeting, and the size of loans, like taxes, is set before the start of budget execution.
Under government debt management means a set of measures by the state to pay income to creditors and repay loans, change the conditions of already issued loans, determine the conditions and issue new government securities.
Public debt management is carried out by the Government of the Russian Federation within the limits of its powers.
Management objectives public debt is:
- o maintaining the volume of public debt at an economically safe level;
- o maintaining the cost of servicing public debt;
- o ensuring the fulfillment of state obligations in full at a lower cost for the medium and long term.
The payment of income on loans and their repayment are usually made at the expense of budgetary funds. However, in the context of a significant increase in government debt and growing budgetary difficulties, the country may resort to refinancing government debt.
Under refinancing means the repayment of old government debt by issuing new loans.
For example, our country used refinancing to repay the debt on the government's 3% domestic winning loan in 1966. Upon the expiration of this loan, the bonds were exchanged within one year for the bonds of a new loan - an internal winning loan of 1982 without paying the exchange rate difference.
Refinancing was also used to issue government treasury bonds. As the implementation progressed, additional funds were allocated to repay the loans of 1955-1956, which were spread among the population by subscription.
Refinancing is actively used when paying interest and repayments on the external part of the public debt. An indispensable condition for the provision of new loans is the reputation of the debtor country in the circles of the international financial market, its economic and political stability.
Loans are repaid by drawing draws of winnings (when the face value of the bond is paid along with the winnings), as well as by drawing redemptions on winning and interest-bearing loans, or by buying back government securities from creditors. The payment of income on loans is made by drawing winnings, by annual payment of coupons by banks or by transferring the amount of income in a non-cash form to the accounts of enterprises and organizations. A non-cash procedure for receiving income was provided for a state internal five-percent loan of 1990, distributed among enterprises, as well as banks, insurance and other financial and credit institutions.
Payment of winnings, annual interest, the amount of repayment of loans accounts for the bulk of the cost of public debt management. The latter also includes the costs of manufacturing, sending and selling state securities, holding the circulation of winnings, circulation of redemption and some other costs.
The state should take care of the effectiveness of the state credit. A superficial idea of the performance of borrowing operations can be obtained by comparing the amounts of annual receipts from the public credit system. A relatively complete picture of the effectiveness of government lending operations is provided by the ratio of the excess of receipts over expenditures on the state credit system to the amount of expenditures, expressed as a percentage.
Credit efficiency (E) is determined by the formula
E = ((P-R) / R) x 100,
where P - receipts from the state credit system; Р - expenses on the system of state credit.
However, the amount of receipts from the state credit system and the excess of receipts over expenditures on credit operations do not provide an exhaustive description of their effectiveness. It should also take into account the positive impact of public credit on the state of the state budget and money circulation countries, strengthening public confidence in financial activities state structures and, as a result, favorable trends in economic development society.
The external public debt is determined coefficient his service. It represents the ratio of all debt payments to foreign exchange earnings countries from exports of goods and services, expressed as a percentage. A safe level of public debt servicing is considered to be up to 25%. In our country, the external debt service ratio significantly exceeds the permissible limits.
Measures in the field of public debt management, such as conversion, consolidation, exchange of bonds at a regressive ratio, deferral of repayment and cancellation of loans, are aimed at achieving the effectiveness of public credit.
Under conversion the change in the yield of loans is understood. In order to reduce the cost of managing public debt, the government most often reduces the amount of interest paid on loans. However, an increase in the yield of government securities for creditors is also possible.
Under consolidation means a change in the terms of loans associated with their terms. The state is interested in obtaining loans for long periods. Extending the term of already issued loans can be achieved through the consolidation of public debt.
Unification loans is a combination of several loans into one, when bonds of previously issued loans are exchanged for bonds of a new loan. The unification of government loans is usually carried out in conjunction with consolidation, but can also be done outside of it.
Such a measure provides for a decrease in the number of types of securities circulating at the same time, which simplifies the work and reduces government spending on the state credit system. In exceptional cases, the government may conduct exchange of bonds on a regressive basis, those. when several previously issued bonds are equated to one new bond.
Deferral of loan repayment or all previously issued loans is carried out in conditions when further active development of operations for issuing new loans does not have financial efficiency for the state. This happens at a time when the government has already issued too many loans and the terms of their issue were not favorable enough for the government. In such cases, most of the proceeds from the sale of bonds of new loans are used to pay interest and redemption on previously issued loans. To break this vicious circle, the government announces a deferral of loan repayments, which differs from consolidation in that the delay not only pushes back the maturity, but also stops the payment of income.
Conversion, consolidation, unification of government loans and exchange of government bonds are usually carried out only in relation to domestic loans. As for the postponement of the repayment of obligations, this measure is also possible in relation to external debt. The deferral of repayment of external loans, as a rule, is carried out in agreement with the lenders. At the same time, the postponement of debt repayment may not result in the suspension of interest payments on it.
Under cancellation of public debt is understood as a measure as a result of which the state completely refuses obligations on issued loans (internal, external, or for the entire public debt).
Cancellation of government securities can be carried out for two reasons. First, the cancellation of the public debt is announced in the event of the financial insolvency of the state, i.e. his bankruptcy. Secondly, the cancellation of debt may be a consequence of the coming to power of new political forces, which, for certain reasons, refuse to recognize financial liabilities previous authorities. Note that at present the RF Government has recognized a part of the external pre-revolutionary debt.
An important area is public debt management, associated with the definition of conditions and the issuance of new loans. When determining the conditions for issuing loans, the main of which are the level of return on securities for lenders, the duration of loans, the method of payment of income, the state is obliged to be guided not only by the interests of achieving the maximum financial efficiency of loans, but also to take into account the real situation in financial market... The success of new loans can only be ensured if the situation in the economy, the state of monetary circulation, the level of profitability and the terms of existing loans, the benefits provided to lenders and many other factors are correctly taken into account.
When managing public debt, it is also used restructuring - repayment of debt obligations with the consent of creditors, with payment by installments (i.e. acceptance of other debt obligations) in the amount of debt obligations to be repaid with the establishment of other conditions for servicing debt obligations and maturity dates (revision of payment terms, writing off part of the debt).
In world practice, there are four main schemes for restructuring sovereign debt:
- o exchange of one debt for another ("bonds-bonds" scheme);
- o exchange of debt obligations for shares within state program privatization ("bonds-shares" scheme);
- o early redemption of debt obligations at a discount (“redemption” scheme);
- o writing off part of debt obligations.
In order to manage the public debt and reduce it, Russia is developing a program of state external borrowings of the Russian Federation for the next financial year, indicating the purpose, sources and volumes of borrowings, as well as the timing of repayment. As a result of the management procedure, the debt decreases, and in some cases even increases. If the debt or part of it is written off, then on condition that new loans are taken.
A program of state domestic borrowing of the Russian Federation to cover the deficit is also being developed.
All funds received by the budget from borrowings, including funds spent on servicing and repaying public debt, are reflected in the budget as sources of financing the budget deficit.
The public debt management system is the interconnection of budgetary, 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 budgetary process, since debt policy and the public debt management system directly affect the formation budgetary policy... With this in mind, public debt management policies and a debt management system are prerequisites for sound fiscal policy and the smooth functioning of the budget process.
Within the framework of public debt management, two books on public debt accounting:
- o State debt book of the Russian Federation in relation to the state internal debt;
- o State debt book of the Russian Federation in relation to public external debt.
The methodology for accounting for debt obligations differs to a large extent in different departments of the Ministry of Finance of Russia, accounting not only by categories of debt, but also by types of debt obligations, which makes it difficult to determine the exact amount of debt and long-term budget planning in terms of servicing and repaying public debt and attracting borrowings.
Paying interest for a long time, and the gradual repayment of the principal amount of the debt is called debt service.
The excessive enthusiasm of the Government of the Russian Federation at the beginning of market reforms with loans had a negative impact on the budget, and, consequently, on the financing of sectors of the economy and the social sphere.
With a lack of tax and non-tax funds to generate budget revenues, the state uses its capabilities to attract additional financial resources by borrowing funds, accumulating debt, which ultimately leads to an increase in public debt.
RF policy in the field of public debt. In accordance with the principles of debt policy in 2005 and 2006. The Russian Federation carried out early repayment government external debt obligations. In January 2005, the balance of debt obligations to the IMF was repaid in full ahead of schedule. In June 2006, the Russian Federation fully repaid its debt to the Paris Club of creditors.
At present, the level of public debt remains at a safe level of less than 9% of GDP (the volume of external debt amounted to 2.8% of GDP by the end of 2010), which ensures the stability of the budget system and helps to strengthen the international prestige of Russia as a state with a significant supply of financial and debt sustainability, with a reputation as a conscientious borrower and committed to concrete policy measures to improve the investment climate in the country.
State debt policy of Russia for 2008-2010 did not provide for the attraction of financial unrelated loans in the external market.
Principles of the state debt policy of the Russian Federation:
- o replacement of public external debt with domestic borrowings;
- o development of the government securities market;
- o use of government guarantees to accelerate economic growth;
- o use of instruments of debt policy in order to implement additional sterilization of excess money supply and fight inflation.
In the field of domestic borrowing, the debt policy in 2010-2013. will proceed from the development goals of the government securities market. The key tasks will be to increase the liquidity of the market portion of the domestic government debt and maintain the optimal duration and yield on the government securities market.
During this period, it is planned to have a positive balance of borrowings in the domestic market, which does not lead to an increase in interest rates. Borrowings on the market for domestic government debt will mainly be of medium and long term nature.
Restricting borrowing in the domestic market with almost complete rejection of external borrowing, combined with early repayment of a significant part of external debt from the Stabilization Fund, led to the fact that the size of public debt fell to about 7% of GDP, which is significantly lower than that of most developed countries and transition economies... The debt service burden on the budget has significantly decreased.
Consideration of the state of the state debt of the RF allows us to highlight the following main points:
- o most of the Russian debt (including the debt of the USSR) is made up of short-term borrowings, which is why over the past ten years the question of debt restructuring has arisen so often;
- o there is no debt management system, i.e. debts in Russia are dealt with by the Ministry of Finance of Russia, Vnesheconombank, and partly by the Bank of Russia. There is no single body that has dealt exclusively with debt issues, although progress has been made on this issue;
- o repayment and servicing of public debt is currently a priority;
- o the government has become aware of the problem of upcoming significant payments on the external debt in the coming years, as evidenced by the mechanism for creating the Reserve Fund prescribed in the budget and statements by the country's leadership on early repayment of obligations to creditors;
- o The loans granted to Russia have brought little benefit to it and have led to an increase in the debt burden.
Reducing the debt burden and leaving the country from the "debt trap" is possible only with a significant steady growth in national production and the implementation of socio-economic policies that ensure the necessary conditions to boost business and investment activity. Average GDP growth rates should not fall below 4% per year. The budget surplus should be used for scheduled and early repayment of debt.
At the end of June 2010, the leaders of the G-20 states came to a common understanding that budget deficits should be reduced at least by half by 2013, and the ratio of public debt to GDP should be stabilized by 2016. Russia has also assumed such obligations.
In 2010, the sources of covering the federal budget deficit in Russia were funds reserve funds and borrowing. However, as early as next year, borrowings will become the main source of covering the deficit, which, with the remaining deficit, means a significant (more than 1.5 times) increase in debt service costs - from approximately 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 by 4% annually, and the federal budget deficit will be maintained at 3%, then by 2020 the public debt will reach 33% of GDP against the current 10%. At the same time, interest expenses of the federal budget will grow to 3-4% of GDP at borrowing rates of 6-8%.
The need to pay off the state debt requires the search for additional resource revenues to the budget, and they can be obtained (apart from new loans) only with the help of taxes. In addition, paying off debt obligations and paying interest on them distracts part of the budget revenues from productive use, reduces the possibilities of building up the production and intellectual potential of society, for which future generations are already paying the price. It sometimes took almost a quarter of the budget to service it.
Optimizing the management of public debt and financial assets is the goal of the Ministry of Finance of Russia. This problem remains relevant, despite the fact that in the previous period the volume of Russia's state debt was systematically decreasing. Its achievement presupposes the solution of a number of key tasks, namely:
- o ensuring an acceptable and economically justified volume and structure of the state debt of Russia;
- o reduction of service costs and improvement of public debt management mechanisms;
- o improving the efficiency of management of foreign financial assets of the Russian Federation.
The Ministry of Finance of Russia manages the public debt, including the maintenance of state debt books, the development of programs for state domestic and foreign borrowing, programs of state guarantees in the currency of the Russian Federation and in foreign currency, and also carries out a number of other procedures (budget, financial, accounting, organizational, etc.) aimed at ineffective regulation of the state debt of Russia and reducing the impact of the debt burden on the country's economy.
An important area of improving the system of public debt management in the Russian Federation is the transition to modern methods active management of debt obligations to minimize the cost of servicing and associated risks, to conduct an effective public debt policy and improve the debt instruments of the Russian Federation1.
If the authorities conduct a competent economic policy, which they carried out at the beginning of the second millennium, the problem of the external debt of our country in the coming years can be completely solved.
Public debt management is understood as a set of measures taken by the state to pay income to creditors and repay loans, change the terms of already issued loans, determine the conditions and issue new government securities.
Management is carried out by the Government of the Russian Federation, within the powers established by the Federal Assembly of the Russian Federation.
The main goals of public debt management are:
Maintaining the volume of public debt at an economically safe level;
Saving the cost of servicing public debt;
Ensuring the fulfillment of state obligations in full at a lower cost for the medium and long term.
The payment of income on loans and their repayment are usually made at the expense of budgetary funds. However, in the context of a significant increase in government debt and growing budgetary difficulties, the country can also resort to refinancing public debt. Refinancing refers to the repayment of old government debt by issuing new loans. For example, our country used refinancing to repay the debt on the government's 3% domestic winning loan in 1966. Upon the expiration of this loan, the bonds were exchanged within one year for the bonds of a new loan - an internal winning loan of 1982 without paying the exchange rate difference.
Refinancing was also used to issue government treasury bonds. As they were implemented, additional funds were allocated to repay the loans of 1955-1956, which were placed among the population by subscription.
The area of public debt management is important, connected with the definition of conditions and the issuance of new loans. When determining the conditions for issuing loans, the main of which are the level of return on securities for lenders, the duration of loans, the method of payment of income, the state must be guided not only by the interests of achieving maximum financial efficiency of loans, but also to take into account the real situation in the financial market. The success of new loans can only be ensured if the situation in the economy, the state of monetary circulation, the level of profitability and the terms of existing loans, the benefits provided to lenders and many other factors are correctly taken into account.
The production, storage and distribution of government loan bonds are assigned to the relevant departments of the Ministry of Finance, and the sale of government securities is assigned to the banking system. Banks freely sell and buy government bonds on all working days, except for the period from the date of the drawing of winnings until the day the official table is received. On the eve of the drawing, the existing bonds are sealed, upon receipt of the official winning table, they are checked by a special commission. The winning bonds are withdrawn from further circulation, the winnings on them are credited to the budget income. The next day, operations for the purchase and sale of bonds of winning loans are resumed. Transactions with interest-bearing bonds and treasury bonds are carried out on a regular basis.
State / municipal debt is the result of borrowings carried out to cover the budget deficit. It is formed by the sum of the deficits for previous years minus the surplus. Let's take a closer look at how
General information
TO To the state debt of the Russian Federation include obligations to:
- Legal entities and individuals (including foreign ones).
- Subjects of the Russian Federation.
- International financial structures, other subjects of international law.
- Foreign states.
Public debt is also formed by obligations:
- on state guarantees provided by the Russian Federation;
- arising as a result of the adoption of laws on the attribution of third-party debt to the public debt.
Nuances of terminology
In accordance with the provisions of the legislation, national and public debt is allocated. The first concept is considered broader. The national debt consists not only of the obligations of the government of the Russian Federation, but also of the governing structures of the republics included in the country, as well as self-government bodies.
Security
It is carried out at the expense of federal property that forms the country's treasury. Despite the fact that the provision of credit relations is carried out by the treasury, the federal budget funds are used to pay off debts (
Budget Code contains an imperative instruction for federal government structures to exercise all powers to raise revenues to pay off obligations.
Compound
State debt of the Russian Federation- direct consequence credit policy power of the country. The composition is determined by the form of the loan - a way of attracting free (temporarily) funds at the disposal of the authorities.
As stated in Article 98 of the BC, the amount of public debt includes:
- the amount of the principal debt on loans;
- the nominal amount for government securities;
- obligations under the issued guarantees.
The structure of the debt does not include the payment of interest, as well as non-interest income from government borrowings. According to the BC, they act as an independent form of federal budget expenditures.
Public Debt Management and Servicing Methods
The public debt appears when the state's costs exceed the receipts of funds, that is, it is formed budget deficit... It is covered government borrowing... The situation is similar with municipal debt. The only difference is that borrowing is carried out at the local or regional level.
Public debt management is one of the directions of the financial policy of the state. It is a set of activities related to servicing public debt, its repayment, issue, placement of loans. Management also includes regulation of the state credit market.
Management methods include:
- Refinancing. It represents the repayment of old debt through the issuance of new loans, involving the replacement of obligations, the maturity of which expires, with new bonds or short-term debt with long-term.
- Conversion. It represents an adjustment to the original terms of a previously issued loan. In particular, the yield changes (the percentage goes down or up).
- Consolidation. It involves the extension of the term of the loan by combining several obligations into one long-term. At the same time, as a rule, the loan interest rate changes.
- Unification. In this case, several loans are also combined, however, the previously issued bonds are exchanged for new ones. The aim of the method is to reduce the number of types of securities, which, in turn, optimizes work with them and reduces costs. In some cases, a regressive exchange may be performed. This means that several bonds issued earlier are equated to one. Such an exchange, for example, was carried out after the war to remove war bonds from circulation. The ratio was 3: 1 (three old ones to one new one).
- Deferral of repayment. It represents the postponement and termination of payments for a certain time.
- Cancellation. It involves a complete disclaimer. This can happen for various reasons: financial insolvency, the coming to power of persons who refuse to recognize the obligations of the past government, etc.
- Restructuring. It involves revising the term for the payment of interest or repayment of the principal debt, lowering the rate, writing off a certain part of the debt. As a rule, this method is used in case of deterioration of solvency in the presence of signs of bankruptcy. According to Article 105 of the BC, restructuring is the termination of state obligations with their replacement with other obligations that imply different conditions. servicing public debt and its repayment.
- Ransom. On the secondary market financial instruments the debtor country can redeem its obligations.
Public Debt Service Activities
The main ones include:
- payments to creditors;
- provision of guarantees;
- repayment of internal / external loans;
- determination of conditions for the issue and placement of new obligations, etc.
The effectiveness of these measures depends on the validity of the decisions made. It, in turn, is based on a thorough analysis of the structure and volume of public debt, an objective assessment of the current state of borrowing.
Normative base
The provisions governing the servicing of the public debt and municipal borrowings are enshrined in Article 119 of the BC.
It is understood as a set of operations for the payment of income in the form of interest or discount. O servicing state (municipal) debt carried out from the budget of the corresponding level.
In clause 2 of this article, it is established that the Central Bank, a credit structure or other specialized financial institution perform the tasks of an agent of the Government for the implementation of these operations, as well as for the placement, exchange, redemption, and repayment of obligations. This activity is carried out in accordance with agency agreements concluded with the general agent, the Central Bank performs free of charge.
According to Article 119 of the Budget Code, payment for the activities of agents for the implementation of the tasks enshrined in the agreements signed with the Ministry of Finance is made from the federal budget.
The implementation by a credit structure or other specialized organization of the functions of an agent of the executive body of state power in the region of the Russian Federation is carried out in accordance with agreements concluded with the executive institution of power of the subject carrying out borrowings.
Agreements can also be signed with the local administration (when servicing municipal debt). In this case, payment for agency services is carried out from the local budget.
Service costs
They are referred to in Art. 111 BC.
Public debt service costs subject or municipal borrowings are planned annually. The estimate is approved by the law on the corresponding budget.
Public debt service ceiling according to the indicators of the report on the execution of income and expenditure items of the budget for reporting period cannot be more than 15% of the volume of the corresponding budget. This does not take into account the costs incurred through subventions.
Key principles
Public debt service is based on:
- Unconditions. It involves ensuring the accurate and timely repayment of obligations to investors and creditors without putting forward additional conditions.
- Consistency. It assumes the maximum harmonization of the interests of the lender and the borrower.
- Unity of accounting. In the course of managing and servicing the state debt, all types of securities issued (issued) by state authorities, regional structures and municipalities should be taken into account.
- Unity of credit policy. It presupposes the application of a unified approach in the implementation of debt management and servicing activities on the part of the center in relation to the MO and the regions.
- Reducing risks. The financial policy should include all the necessary measures to help reduce the risks of creditors and investors, and the debtor himself.
- Glasnost. All interested users should receive complete and accurate information about loans in a timely manner.
- Optimality. A system of state loans should be formed in which their repayment will be carried out with minimal risks... At the same time, operations should have the least negative impact on the economy.
Authorized entities
In accordance with Article 101 of the BC, management:
- the state debt of the Russian Federation is carried out by the Government or the Ministry of Finance, authorized by it;
- the state debt of the region - the supreme executive institution of power or financial structure authorized in accordance with regional legislation;
- municipal obligations - the executive and administrative body of the MO (local administration), authorized by the charter of the municipality.
Conclusion
The size of the public debt determines the effectiveness of all lending operations performed by the state. The absolute indicator of borrowing, their dynamics, the rate of change characterize the state of the country's finances and economy, the efficiency of financial organizations.
During a downturn, according to the classical approach to debt management, it is advisable to reduce the amount of public debt. Otherwise, the debt will negatively affect the financial condition country, and on its economy.
An alternative approach is based on the opposite concept. In accordance with it, with a decrease in business activity, the amount of loans should be reduced. At the same time, the public debt will perform the functions financial mechanism, contributing to the acceleration of economic development.
Government borrowing can be useful only during a steady growth of the economy. During periods of recession, the budget deficit can significantly worsen the financial condition of the country, increase the threat of a debt crisis and lower the country's reliability rating. This, in turn, leads to a deterioration in the general economic condition. The growth of public debt leads to real negative consequences for the financial, economic and social sectors.
Public debt are debt obligations of the Russian Federation to physical and legal entities, foreign states and international organizations.
- External debt- these are liabilities to non-residents in foreign currency.
- Domestic debt- liabilities to residents in rubles.
The state debt is secured in federal ownership.
Debt obligations of the Russian Federation exist in the form:
- credit agreements signed on behalf of the Russian Federation with credit institutions, foreign states and international financial organizations;
- government securities;
- agreements on the provision of state guarantees;
- re-registration of debt obligations of third parties into public debt.
Public debt can be short-term(up to one year), medium term(from one to five years) and long-term(from five to thirty years old).
The public debt is repaid within the terms established by the terms of the loans, but these loans cannot exceed 30 years.
Public debt management is carried out by the government of the Russian Federation.
The Russian Federation is not responsible for the debt obligations of the constituent entities of the Russian Federation and municipalities unless they have been guaranteed by the federal government.
Maximum volumes of state internal and external debt is determined by the law on the federal budget for the next year. In accordance with article 106 of the Budget Code of the Russian Federation, the maximum volume of government external borrowings should not exceed the annual volume of payments for servicing and repayment of government external debt.
The Law on the Federal Budget for the next financial year approves the Program of State External Borrowings. This program is a list of external borrowings of the federal budget for the next financial year, indicating the purpose, sources, repayment periods and total borrowings. It specifies all loans and government guarantees exceeding the equivalent of $ 10 million.
The decision to issue government securities is taken by the government, respectively, in accordance with the maximum amounts of the budget deficit and public debt, established in accordance with the budget law, as well as with the Internal Borrowing Program.
The decision on the issue of government securities shall reflect information about the issuer of the securities, the volume and conditions of the issue.
State guarantee is the way to ensure legal obligations, by virtue of which the Russian Federation, as a guarantor, gives a written obligation to be responsible for the performance by the person who received the guarantee of his obligations to third parties.
The law on the federal budget for the next year determines maximum size the amount of government guarantees. total amount government guarantees denominated in rubles are included in the government's internal debt.
The total amount of government guarantees denominated in foreign currency is included in government external debt.
In accordance with article 118 of the Budget Code of the Russian Federation budgetary institutions are not allowed to borrow from credit institutions... But they have the right to receive loans from budgets and state extrabudgetary funds... The register of debts of state unitary enterprises is maintained by the Treasury.
State books of the internal and external debt of the Russian Federation are maintained by the Ministry of Finance of the Russian Federation.
IN State debt book information is entered on the volume of debt obligations of the Russian Federation, constituent entities of the Federation and municipalities on issued securities.
Information on borrowings is entered by the issuer into the State Debt Book of the Russian Federation within a period not exceeding three days from the moment the corresponding obligation arises.
To reduce the debt burden, it can be applied debt restructuring... It is understood as the repayment of old debt obligations with the simultaneous implementation of new borrowings in the amount of debt obligations to be repaid and with the establishment of new conditions for servicing the debt.
The following public debt management tools are also used:
- consolidation- consolidation of several loans into one more long-term one with a change in the interest rate;
- government loan conversion- a change in the original terms of the loan related to profitability. Most often, in the course of conversion, the government lowers the interest rate;
- external debt conversion- a means of reducing external debt by fulfilling debt obligations to creditors by transferring bills of exchange and shares to them in national currency;
- innovation- replacement of the initial obligation between the parties with another obligation between the same parties, providing for a different way of performance.
In 1985, the external debt of the USSR amounted to $ 22.5 billion, in 1991 - $ 65.0 billion.Russia's external debt, including the debt of the USSR, amounted to $ 124.5 billion as of January 1, 2003. For its full repayment within 30 years, at least $ 300 billion will have to be paid along with interest payments.
Table 6 Dynamics of the state external debt of the Russian Federation (billions of US dollars)
Name |
||||||
External debt of the Russian Federation, including the obligations of the USSR Including: |
||||||
on loans from foreign governments |
||||||
on loans from foreign banks and firms |
||||||
on loans from international financial organizations |
||||||
government securities of the Russian Federation in foreign currency |
||||||
on loans The Central Bank RF |
||||||
guarantees and reserves for changes in interest rates and foreign exchange rates |
In order to ensure its foreign policy and foreign economic interests, Russia provides loans to foreign states. The program for providing such loans is approved by the law on the federal budget for the next year. This program consists of a list of loans indicating the purpose of their provision, recipients and amount. Agreements on debt restructuring or debt cancellation of foreign states to the Russian Federation must be ratified by the State Duma.
The concept and structure of external financing and external debt
External financing of the state is a consequence of the objective need to attract additional sources to finance government spending and the budget deficit with the exhaustion of all possible sources of mobilization of monetary resources within the country.
External financing is attracted by the state to finance its expenses and the budget deficit if it is impossible to mobilize these funds within the country. In other words, international financing used when public finances have a high deficit and need to finance expenditures. External financing is attracted in two directions: state and private (according to sources)(fig. 50).
Rice. 50. Structure of external financing by sourcesExternal funding also varies by shape... It is carried out both in the form of a gratuitous financing, and in the form of a return lending(fig. 51).
Rice. 51. Structure of external financing and lending by typeInternational finance is structured and by timing(in terms of lending) for short (up to 1 year), medium (from 1 to 7 years) and long-term.
Public Debt Management
The system creates government debt system: internal and external
System debt service requires a system debt management.
The system of public debt requires the creation of a debt management system. Servicing public debts, internal and external, includes in stages: repayment of interest; repayment of the capital amount of the debt and its refinancing, if necessary.
If the conditional debt of the state is 100 thousand units. and it is presented from 20% per annum (the usual interest on international market loan capital for states - dubious borrowers) for 4 years with a one-year grace period(the period when only interest is paid off), and the amount of debt is not extinguished, then 80 thousand units must be added to the real amount of debt (100 thousand units). percent (80% per annum multiplied by 4 years). Then the schedule of servicing such debt will look like this (Fig. 52): 180 thousand. units in 4 years.
Rice. 52. Schedule of public debt service (with a period of 4 years from 20% per annum)
Thus, the most simple circuit servicing the public debt illustrates the sufficient complexity of its management. Due to the high cost of public debt, the management system includes negotiations on changing the terms of debt, and the debt refinancing mechanism itself, and monitoring of indicators of the volume and level of debt, and comparing them with other indicators of public finance (GDP, state budget, etc.).
Debt refinancing is a whole mechanism (another name is restructuring) (Fig. 53).
Public debt management is one of the main directions of public financial policy.
Debt refinancing Is a system of measures to change the terms of loans: terms, volumes, cost (interest).
Rice. 53. Methods of refinancing public debtCancellation implies the complete cancellation of the debt (applies only in the event of complete bankruptcy of the state as a debtor).
Prolongation- this is the lengthening of the maturity of debt and interest payments.
Securitization Is the resale of government bonds for open market(stock exchange).
Capitalization- This is the restructuring of government bonds into private shares through their resale on the stock exchange.
Public Debt and Public Debt Management Practices
The state domestic debt of the Russian Federation consists of debts of previous years and newly arising debts. The state domestic debt of the Russian Federation is secured by all assets at the disposal of the Government of the Russian Federation.
Debt obligations of the Russian Federation can be in the form:
- loans received by the Government of the Russian Federation;
- government loans carried out through the issue of securities on behalf of the Government of the Russian Federation;
- other debt obligations guaranteed by the Government of the Russian Federation.
The procedure, conditions for the issue (issue) and placement of debt obligations of the Russian Federation are determined by the Government of the Russian Federation. This activity is called: public debt management.
The servicing of the state internal debt of the Russian Federation is carried out The central bank RF and its institutions, unless otherwise established by the RF Government, and is carried out through operations for the placement of debt obligations of the RF, their repayment and payment of income in the form of interest on them or in another form.
Control over the state of the state debt is carried out by the representative and executive bodies of state power.
Under government domestic debt management means a set of measures of the state for the payment of income to creditors and repayment of loans, as well as the procedure, conditions for the issue (issue) and placement of debt obligations of the Russian Federation.
To the main public debt management practices should include:
- Refinancing- repayment of old government debt by issuing new loans.
- Conversion- change in the size of the loan yield, for example, decrease or increase interest rate income paid by the state to its creditors.
- Consolidation- extension of the term of already issued loans.
- Unification- consolidation of several loans into one.
- Deferral of loan repayment is carried out in conditions when the further active development of operations for the issuance of new loans is not effective for the state.
- Debt cancellation- refusal of the state from debt obligations.
- Debt restructuring- repayment of debt obligations with the simultaneous implementation of borrowings (assuming other debt obligations) in the volumes of debt obligations to be repaid with the establishment of other conditions for servicing debt obligations and the timing of their repayment. IN The Budget Code RF notes that debt restructuring can be carried out with a partial write-off (reduction) of the principal amount.
- Yuzhakov O.Yu. Bank management in the context of the economic crisis: international experience. A systemic banking crisis has begun in russia A systemic crisis occurs when bad assets reach
- How does the closed rotational village of Sabetta live in the far north of Sabetta who builds
- How to spend Zapsibcombank bonuses?
- The wives of the richest Russian businessmen and officials (29 photos)