Public Debt Management. State and municipal debt

18. Municipal debt Municipal debt is a set of debt obligations of the respective municipality. Municipal debt is fully and unconditionally secured by all municipal property that makes up the municipal treasury (Article 100 BC

US National Debt (US Federal Government Debt) I rank economy as one of the first and foremost Republican virtues, and national debt is the greatest threat to be wary of. Thomas Jefferson The US government took

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.

The public debt consists 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 legally enshrined in RF Budget Code.

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 the state 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 Federationmeans 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 totality 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 their 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 debtliabilities 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 means liabilities arising in foreign currency.

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 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 that are due.

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 past 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 determined by the specific terms of the loan. For debt obligations of the Russian Federation and its constituent entities, maturity dates cannot exceed 30 years, and for obligations of a municipal formation - 10 years.

Debt obligations of the constituent entities of the Russian Federation and municipalities can exist in such forms, with the exception of international agreements and contracts at the level of municipal formation. All of these forms are used quite actively in market practice.

Loan agreements and contracts in the system of state credit, they are concluded primarily with credit institutions of various kinds, usually 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 the 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 the budgets of state extra-budgetary funds.

1. The state debt of the Russian Federation is the debt obligations of the Russian Federation to individuals and legal entities, foreign states, international organizations and other subjects of international law, including obligations under state guarantees provided by the Russian Federation.
2. The state debt of the Russian Federation is fully and unconditionally secured by all federal property that makes up the state treasury.
3. Federal bodies of state power shall use all their powers to form federal budget revenues to pay off debt obligations of the Russian Federation and service the state debt of the Russian Federation.

According to clause 1 of the commented article of the BC RF, the state debt of the RF is understood in the broad sense of the word. The concept of "public debt of the Russian Federation" includes all types of debt (credit) obligations of the Russian Federation that have not been repaid in previous years and that have arisen to any creditors, including the obligations of the Russian Federation under the government guarantees provided by it, expressed in the currency of the Russian Federation (in rubles ). In addition, the concept of "public debt" also includes the total amount of interest accrued on the amount of the RF debt. In the event of this type of debt obligation, the debtor in any case is the Russian Federation, whose interests are represented by authorized state executive bodies.
Both individuals and legal entities can be lenders. At the same time, the RF BC, in all likelihood, also proceeds from a broad understanding of the concept of "individuals", and means by them citizens of the Russian Federation, foreign citizens permanently residing in the territory of the Russian Federation, stateless persons, as well as the concept of "legal entities" which includes both Russian and foreign legal entities.
A significant group of creditors are foreign states, whose interests in debt obligations are represented by the competent authorities of a foreign state. In addition, the RF BC provides for the possibility of granting a loan to the RF from international organizations, as well as other subjects of international law. Most often, the following international organizations act as creditors of the Russian Federation: the United Nations (UN), the International Bank for Economic Cooperation (IBEC), the International Investment Bank (IIB) - at the universal level, as well as the Commonwealth of Independent States (CIS), the Organization for Security and Cooperation in Europe (OSCE), Council of Europe, European Union and others - at the regional level.
The "other subjects of international law" include: state-like formations, as well as nations and peoples fighting for self-determination. However, the so-called other subjects of international law can hardly be classified as real creditors of the Russian Federation due to economic instability and insolvency. Apparently, the legislator included a similar wording in paragraph 1 of the commented article, suggesting possible changes in the world market in the future.
Clause 2 of the commented article of the RF BC establishes the unconditionality of the RF repayment of its debt obligations to individuals and legal entities, foreign states, international organizations, and other subjects of international law. The pledge of performance, the way to secure this debt obligation is the property that is part of the federal treasury. At the same time, the legislator provides for the need to fulfill the debt obligation of the Russian Federation in full, as well as ensure its fulfillment by the property of the Russian Federation in full.
When considering clause 2 of the commented article of the BC RF, it is also important to take into account the limitation set in sub. 1 p. 1 of Art. 126 of the Civil Code of the Russian Federation, according to which the Russian Federation is responsible for its obligations with property belonging to it by right of ownership, except for property that is assigned to legal entities created by it on the basis of economic management or operational management, as well as property that can only be in state ownership.
In other words, the RF is liable for its debt obligations with the property belonging to it on the basis of federal ownership in full. This provision of the Civil Code of the Russian Federation and the BC of the Russian Federation is not special, this rule is approved by world practice and is common for most world states. In the event that the Russian Federation does not fulfill its debt obligations, at the request of the creditor, measures of civil liability can be applied, up to the application of foreclosure on the property of the Russian Federation in the federal treasury.
This rule follows from Art. 237 of the Civil Code of the Russian Federation, which regulates the judicial procedure for the foreclosure of property for the obligations of the owner. This norm can be spelled out in more detail both in the annual federal law on the budget for the coming year, and in the standing budget legislation. So, for example, in Art. 127 of the Law on the Federal Budget for 2002, it is established that the execution of funds from the federal budget (also part of the federal treasury) for monetary obligations of recipients of budget funds is carried out on the basis of writs of execution of the judicial authorities from the accounts of debtors opened in the Central Bank of Russia and (or) credit institutions, as well as from their personal accounts opened with the Federal Treasury.
The collection of funds for the monetary obligations of recipients of budgetary funds is carried out by the Federal Treasury bodies on the basis of the enforcement orders of the judicial authorities presented to them exclusively within the designated purpose in accordance with the departmental, functional and economic classification of federal budget expenditures. In the event that the funds provided for these purposes on the personal accounts of the debtors are insufficient, the chief administrator of the federal budget, in whose jurisdiction the debtor is, bears subsidiary (additional) responsibility for the execution of court decisions within the limits of the appropriations provided to him in the manner prescribed by the Government of the Russian Federation.
According to clause 3 of the commented article of the RF BC, servicing of the state debt of the RF with accrual of interest on the amount of the debt, as well as the implementation of measures aimed at repayment and (or) reduction of debt obligations of the RF, is carried out by the competent federal authorities (for more details see Art. ).
It is important to emphasize that funds received by the Russian Federation from various creditors (individuals and legal entities, foreign states, international organizations, other subjects of international law), as a rule, are spent in accordance with their intended purpose. So, for example, in Art. 119 of the Law on the Federal Budget for 2002, the Government of the Russian Federation was granted the right, within the limits of the amount of guarantees established in the structure of the state debt, to attract domestic and a project to create a national system of mobile (mobile) satellite communications "SADCO".
According to clause 3 of the commented article of the RF BC, servicing the state debt also implies the formation by authorized state bodies of the revenues of the federal budget to pay off the debt obligations of the RF. Depending on the degree of economic stability, each financial (fiscal) year may involve different sources of debt coverage. So, for example, in Art. 2 of the Law on the Federal Budget for 2002 stipulates that the funds of the financial reserve (these are free balances of the federal budget that have not been used for the past financial year) can be used to pay off the state debt of the Russian Federation. In addition, the Government of the Russian Federation has the right to send in 2002 to make payments that reduce the debt obligations of the Russian Federation:
- the balance of receipts from transactions in the market with government securities;
- income from privatization of state property;
- the amount of excess income over expenditures on state reserves of precious metals and precious stones;
- loans from international financial organizations, foreign governments, banks and firms.
In accordance with Art. 117 of the Law on the Federal Budget for 2002, in order to support the development of enterprises in the real sector of the economy, the Government of the Russian Federation was granted the right to repay the state external debt of the Russian Federation by commodity supplies and by converting debt into investments on the basis of agreements with creditors. At the same time, the Government of the Russian Federation must approve the procedure for repayment of the state external debt, ensuring the transparency of financial transactions, and the procedure for selecting applications. At the same time, according to Art. 114 of this Law, the Government of the Russian Federation has the right to use the funds received from the savings in servicing the state external debt of the Russian Federation to increase the amount of appropriations for repayment of the state external debt of the Russian Federation.

In accordance with Art. 97 of the Budget Code of the Russian Federation, public debt is the debt obligations of the Government of the Russian Federation to individuals and legal entities, foreign states, international organizations and other subjects of international law, arising as a result of borrowing.

The state debt of the Russian Federation is fully and unconditionally secured by all federal property that makes up the state treasury.

In accordance with the Budget Code of the Russian Federation of 07/31/98 N 145-FZ Art. 98:

1. Debt obligations of the Russian Federation may exist in the form:

Credit agreements and contracts concluded on behalf of the Russian Federation with credit institutions, foreign states and international financial organizations in favor of the indicated 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 the debt obligations of the Russian Federation of previous years.

2. Debt obligations of the Russian Federation can be short-term (up to one year), medium-term (from one year to five years) and long-term (from five to 30 years).

Debt obligations of the Russian Federation are repaid within the terms that are determined by the specific terms of the loan and cannot exceed 30 years.

Public debt exists in two forms: capital and current. Capital debt refers to the entire amount of issued and outstanding government debt obligations (including accrued interest), and current government debt refers to the cost of paying income to creditors on all government debt obligations and the repayment of obligations that have come due.

The large number of RF debt obligations necessitates their classification. Public debt can be classified according to several criteria:

the place where the debt is placed;

levels of government;

the term for raising funds;

the nature of the income paid;

the volume of expenses for the payment of public debt;

method of determining income, etc.

By form, debt obligations are divided into:

credit agreements and contracts concluded on behalf of the Russian Federation as a borrower with banks, foreign states and international financial organizations;

government loans made by issuing securities on behalf of the Russian Federation;

contracts and agreements on the receipt by the Russian Federation of budget loans and budget loans from the budgets of other levels of the budget system of the Russian Federation;

agreements on the provision of guarantees by the Russian Federation;

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.

According to the terms, the debt obligations of the Russian Federation can be:

short-term (up to one year);

medium-term (over one year to five years);

long-term (over five years to 30 years).

Changes in the conditions of a state loan issued into circulation, including the timing of payment and the amount of interest payments, the circulation period, is not allowed.

The most common classification is based on the location of the debt, in this case the public debt is divided into external and internal.

Domestic public debt is the amount of government debt on outstanding debt obligations (bonds) and unpaid interest on them.

The state internal 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 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 (with the exception of the specified) debt obligations of the Russian Federation, the payment of which in the currency of the Russian Federation is provided for by federal laws prior to the entry into force of this Code.

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 the liabilities for which are expressed in foreign currency, including for targeted foreign loans (borrowings) attracted under state guarantees of the Russian Federation;

3) the amount of liabilities under state guarantees of the Russian Federation, expressed in foreign currency.

The state's activity as a borrower serves as an indicator of the state of its finances. The larger the amount of borrowings, the worse the situation with the state budget. The higher the share of public debt in GDP, the deeper the crisis in public finance. Russia's huge public debt, both internal and external, is evidence of the country's financial crisis.

Domestic public debt plays an important role in macroeconomic regulation, in particular, in the regulation of interest rates and money circulation. In the balance sheets of the central banks of all countries, the main asset is government securities - one of the types of government debt.

Central banks purchase government securities in the secondary market and, taking them into account in their assets, reflect the emission of money in liabilities, or rather, the growth of the monetary base. This is how the monetization of the state internal debt takes place. This means that it is the public debt that becomes the security of the money issued.

Interest on government loans is the macroeconomic regulator of the economy. If the state attracts too much credit resources as loans, offering a high interest rate, then there is a general increase in interest rates. This has a negative impact on business activities.

The servicing of the state internal debt of the Russian Federation (placement, payment of income and repayment of debt obligations) is carried out free of charge by the Bank of Russia and its institutions at the expense of the federal budget. The Government of the Russian Federation may designate another federal executive body to service the debt.

According to the official data of the Ministry of Finance, the share of government securities (from 92% to 95% from 2009 to 2012) and government guarantees in the structure of government internal debt is increasing.

The absolute size of the state external debt in ruble terms is increasing mainly due to the change in the ratio of the ruble to the US dollar and will increase by 14.8%.

In connection with the reduction of government external borrowings, the structure of government external debt is undergoing changes, the share of government securities denominated in foreign currency and government guarantees is increasing (by 1.12 times in 2010-2011), and the share of debt on loans from foreign governments and MFIs are shrinking.

In the opinion of the Accounts Chamber, given the risks in world financial markets, the Government of the Russian Federation needs to take measures to prevent an increase in the consolidated external debt of the Russian Federation, develop mechanisms for internal lending to sectors of the economy and replace external borrowings with internal ones.

Public Debt Management. His main problems in the Russian Federation

The public credit system creates a system of public debt: internal and external

The debt service system requires the creation of a debt management system.

Public debt management is understood as a set of measures of the state to pay income to creditors and repay loans, as well as the procedure, conditions for the issue (issuance) and placement of debt obligations of the Russian Federation. In accordance with the Federal Constitutional Law of 17.12.97, No. 2-FKZ "On the Government of the Russian Federation", it manages the state internal and external debt of the Russian Federation. This is one of the main directions of the state financial policy.

In the process of public debt management, the following tasks are solved:

1) maintaining the value of the internal and external public debt at a level that ensures the preservation of the country's economic security, the fulfillment by the authorities of their debt obligations without significant damage to the financing of socio-economic development programs;

2) minimization of the cost of debt on the basis of lengthening the borrowing period and reducing the yield on government securities, moving to other markets and shifting attention to other groups of investors;

3) maintaining stability and predictability of the public debt market;

4) achieving effective and targeted use of borrowed funds, government loans and guaranteed loans;

5) ensuring the timely return of government loans and payment of interest on them;

6) diversification of debt obligations in terms of borrowing terms, profitability, forms of income payment and other parameters to meet the needs of various groups of investors;

7) coordination of actions of federal bodies, bodies of subjects of the Federation and local self-government in the market of state debt obligations.

The organizational structure of the public debt management system includes the authorities and administrations of the Russian Federation, performing functions of public debt management in accordance with their competence and the tasks assigned to them. The President of the Russian Federation sets the main priorities of budgetary policy for the short and medium term. The Federal Assembly of the Russian Federation approves in the law on the federal budget for the next financial year the upper limit of the state external and internal debt. The Government of the Russian Federation determines the organizational foundations of the public debt and financial assets management system, approves the main sources and conditions for borrowing, including the state borrowing program. The Ministry of Finance of the Russian Federation manages public debt in accordance with the established procedure. The Central Bank of the Russian Federation advises the Ministry of Finance of Russia on the schedule of repayment of the state debt, taking into account the priorities of the unified state monetary policy. The Ministry of Economic Development and Trade of the Russian Federation takes part in the analysis of the effectiveness of projects financed from external borrowings.

Public debt management is carried out using the following methods:

Refinancing. It is the repayment of the principal and interest on it at the expense of funds received from the placement of 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 is actively used when paying interest and repayments on the external part of the public debt. However, an indispensable condition for the provision of new loans is the good reputation of the debtor country in the circles of the international financial market, its economic and political stability.

Debt refinancing is a whole mechanism.

Debt refinancing is a system of measures to change the terms of loans: terms, volumes, cost (interest).

Cancellation implies the complete cancellation of the debt (applies only in the event of complete bankruptcy of the state as a debtor).

Prolongation is an extension of the maturity of debt and interest payments.

Securitization is the resale of government bonds on the open market (stock exchange).

Capitalization is the restructuring of government bonds into private shares through their resale on the stock exchange.

Loans are repaid by drawing draws of winnings (when the face value of the bond is paid along with the winnings), as well as drawdowns on winning and interest-bearing loans, or by buying back government securities from creditors.

The payment of winnings, annual interest, and loan repayment amounts constitutes the bulk of the public debt management costs. 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 state loans. A relatively complete picture of the efficiency 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 following formula:

E \u003d --------------- x100,

where P - receipts,

Р - expenses for the state credit system.

However, the amount of receipts from the state credit system and the excess of receipts over the costs of credit operations do not provide an exhaustive description of their effectiveness. It is also necessary to take into account the positive impact of state credit on the state of the budget of the state and money circulation, the country, strengthening public confidence in the financial activities of state structures and, as a result, on favorable trends in the economic development of society.

For the external public debt, the coefficient of its servicing is determined - the ratio of all payments on debt to the country's foreign exchange earnings from the export of goods and services, expressed as a percentage. A safe level of public debt service is considered to be up to 25%. In our country, the external debt service ratio significantly exceeds the permissible limits.

Conversion. The government makes a decision to change the yield of previously issued loans. In order to reduce the cost of public debt management, 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. Such an operation was carried out, for example, in 1990, when the yield on bonds of a 3% winning loan was increased to 9%, and on Treasury bonds - from 5 to 10%.

Consolidation. Extending the maturity of previously issued obligations. For example, in 1938 there was a consolidation of freely circulating loans with the exchange of old bonds for new ones, the term of which was doubled (up to 20 years). However, the reverse operation is also possible - decreasing the validity period of government securities. So, in 1990, the term of functioning of treasury bonds was reduced from 16 to 8 years.

It is possible to combine consolidation with conversion. Such an operation was carried out, for example, in 1936, when the bonds of seven government loans, which were placed among the population by subscription with an installment plan, were exchanged for bonds of a new loan with a lower yield and with a doubling (up to 20 years) of the term of the securities ...

Unification. Consolidation of several previously assumed obligations by the state with the replacement of previously issued financial instruments with new ones. The deferral of loan repayment is carried out in conditions when further active development of operations for issuing new loans is not effective for the state. The unification of loans was carried out in 1930: simultaneously with the issue of the "Five-Year Plan - in Four Years" loan, bonds of loans for industrialization and strengthening of the peasant economy were exchanged for its bonds. In exceptional cases, the government can exchange bonds on a regressive basis, i.e. when several previously issued bonds are equated to one new bond. For example, such an exchange was carried out in the post-war period with the aim of withdrawing wartime loan bonds from circulation. A regressive bond exchange relieves the government of the need to pay interest and full-value redemptions on bonds sold by the government for the depreciated wartime currency.

Cancellation. This is the government's refusal to pay the principal and interest on all previously issued loans. 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 the debt may be a consequence of the coming to power of new political forces, which, for certain reasons, refuse to recognize the financial obligations of the previous authorities. So, in January 1918 the government of the RSFSR canceled all pre-revolutionary domestic and foreign loans. The Soviet government did not recognize the financial obligations of the tsarist administration and the Provisional Government, which directed borrowed funds mainly to prepare for war and conduct hostilities, as well as to suppress the revolutionary movement.

Debt restructuring - repayment of debt obligations with simultaneous borrowing (assuming other debt obligations) in the amount of debt obligations to be repaid with the establishment of other conditions for servicing debt obligations and the timing of their repayment. The Budget Code of the Russian Federation states that debt restructuring can be carried out with a partial write-off (reduction) of the principal amount.

Innovation. An agreement between the lender and the borrower to terminate the obligations and replace them with other obligations providing for different terms of loan repayment.

An important component of public debt management is the establishment of its maximum volume and the maximum volume of government borrowings of the Russian Federation. The maximum volumes of state internal and external debt, the limits of external borrowings of the Russian Federation for the next year are approved by the law on the federal budget, with a breakdown of debt by forms of securing obligations.

It has been established that the maximum volume of government external borrowings of the RF should not exceed the annual volume of payments for servicing and repayment of the RF government's external debt.

The Budget Code provides for cases when the Government of the Russian Federation has the right to borrow in excess of the established maximum amount:

on external borrowing - if, at the same time, the Government of the Russian Federation carries out such a restructuring of the state external debt, which leads to a decrease in the cost of servicing it, within the established maximum volume of the state external debt;

for internal (external) borrowing instead of external borrowing - if this reduces the cost of servicing debt within the established amount of public debt (the amount of internal and external debt) and no other restructuring procedure is provided.

The Government of the Russian Federation has the right to determine the volumes, forms, terms, methods and cost conditions of state external borrowings.

The Russian Federation is not responsible for debt obligations of the constituent entities of the Russian Federation and municipalities, if they were not guaranteed by the federal government.

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 on the issuer of the securities, the volume and conditions of the issue.

A state guarantee is a method of securing 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 the maximum amount of state guarantees. The total amount of government guarantees denominated in rubles is 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 take loans from credit institutions. But they have the right to receive loans from budgets and state extra-budgetary funds. The register of debts of state unitary enterprises is maintained by the Treasury.

The Ministry of Finance of Russia maintains state books of internal and external debt of the Russian Federation (State Debt Book of the Russian Federation). Information about debt obligations is entered into the corresponding debt book within a period not exceeding three days from the moment the obligation arises. The State Debt Book contains information on the volume of debt obligations (including guarantees) of the Russian Federation, the constituent entities of the Federation and municipalities on issued securities, the date of occurrence of obligations, the forms of securing obligations, the fulfillment of these obligations in whole or in part, as well as other information. The composition, procedure and terms for submitting information are established by the Government of the Russian Federation.

One of the most significant shortcomings of the public debt management system that is emerging in Russia is that the said system:

insufficiently ensures the implementation of a centralized and long-term policy in the field of public debt management and public borrowing;

does not fully ensure the prevention of possible financial and debt crises, as well as the adoption of prompt measures to overcome them;

is fragmentary and in some cases contradictory.

The current debt management system lacks the following elements:

1. Clear legislative consolidation of the division of competence between the branches of government in the field of public debt management.

At present, the legislation of the Russian Federation governing public debt management issues contains a number of significant contradictions. On the one hand, in the Budget Code of the Russian Federation and the federal constitutional law "On the Government of the Russian Federation", issues of public debt management are referred to the competence of the Government of the Russian Federation. On the other hand, the legislative approval of programs for external and internal borrowing with excessive detailing of the sources of attracting loans and the directions of their use prevents the Government of the Russian Federation from performing the functions of managing state borrowings, in terms of cost and terms of borrowing, in order to reduce debt service costs.

2. Legislative consolidation of the powers of the Government of the Russian Federation to conduct a full range of operations in the field of public debt management.

The very concept of "debt management" and, accordingly, the limits of the powers of the Government of the Russian Federation in the sphere of performing this function are not legally defined.

At present, the budget legislation regulates mainly issues of borrowing and restructuring of public debt. However, an effective public debt management system should include a more significant set of instruments (market transactions to buy out and early repayment of debt, transactions to convert (exchange) debt for investment, goods, securities, other financial assets, etc.). In this regard, it is necessary to develop normative acts detailing the powers of the Government of the Russian Federation and federal executive bodies to conduct the above operations.

Currently, accounting for debt obligations is largely fragmented, and there is no single database of government debt obligations. The accounting of government debt obligations is carried out by various agent banks (the Bank of Russia - internal debt, Vnesheconombank - external debt in terms of bond loans and debt of official creditors and other categories of debt), as well as various departments of the Ministry of Finance of the Russian Federation.

The methodology for accounting for debt obligations differs significantly depending on the body and division of the Ministry of Finance of Russia that carries out accounting. In addition, the accounting methodology in some cases differs not only by the category of debt, but also by the types of debt obligations, which makes it even more difficult to determine the exact amount of debt and long-term budget planning in terms of servicing and repaying public debt and attracting borrowings. The absence of a unified methodology for accounting for public debt, as well as a unified integrated database by types of debt obligations, impairs the ability to form and implement a sound debt strategy, as well as budgetary policy in general.

Currently, the amount of debt repayment and servicing largely depends on the materialization of the risks associated with the structure of public debt.

Due to the fact that the accounting of federal budget revenues is carried out in rubles, and payments on external debt are made in foreign currency, the state bears significant risks in the form of a possible sharp change in the exchange rate of the ruble.

At the same time, an increase in the exchange rate of the ruble leads to a situation where domestic borrowing will be less profitable for the budget than external borrowing for a similar period, taking into account the factor of currency risk (and, conversely, in the event of a fall in the exchange rate of the ruble).

In addition, part of the borrowings that make up the government debt of the Russian Federation has floating interest rates, which leads to the risk of an increase in budget expenditures for debt servicing due to fluctuations in interest rates in international markets.

Thus, the development of a system for analyzing risks associated with public debt management and borrowing is a fundamental element of a system of active public debt management and the implementation of economically and financially sound debt management policies.

Despite the emergence of certain elements of debt policy planning in recent years, it should be admitted that at present there has not been an integrated system for planning public borrowings and a mechanism for determining policy in the field of public debt management.

The process of debt planning is largely dependent on the development of mechanisms and methodology for macroeconomic and budgetary planning, as well as accounting methodology in the public finance sector.

In this regard, debt planning should be an organic part of budget planning and should be carried out on the basis of a single methodology, mechanisms and approaches.

At the same time, the process of debt planning is largely an independent process, since it determines the debt policy, both in the case of a favorable budgetary situation, and in the event of its deterioration.

It is also essential that government borrowing programs are developed and approved only for the next 12 months, in contrast to international practice, which is characterized by the development and adoption, as a rule, of medium-term (3-5 years) loan programs and programs in the field of public debt management.

However, ensuring the effectiveness of medium-term government borrowing programs is possible if there are approved programs for the country's socio-economic development for the corresponding period.

In particular, the lack of a clear relationship between the borrowing policy and the policy in the field of repayment and servicing of accumulated debt has become the fact that in the process of implementing the government borrowing policy, the structural features and payment schedules for the actual portfolio of government debt obligations were not always taken into account. As a result, in a number of cases, the implementation of new borrowings contributed to the formation of so-called “peaks” in payments for the repayment and servicing of public debt.

A vivid example of the indicated shortcoming of the current debt management system is the presence of “peaks” in the schedule of payments on Russia's external debt in 2003, 2005, 2008. Moreover, often payments within one financial year are concentrated within two to three months, which significantly complicates the process of cash management and cash execution of the federal budget.

There is no and, apparently, there cannot be a single indicator that measures the effectiveness of public debt management, since in carrying out this activity, the state has a direct impact on the most diverse areas of public life. There are no methods for assessing the positive impact of public debt on the budget and money circulation of the country, the investment process and the degree of public confidence in the financial activities of the state, etc. However, certain aspects of the effectiveness of public debt management can be measured. This, as mentioned above, is the efficiency of domestic debt management and the public debt service ratio.

According to the officially submitted document of the Ministry of Finance on the main directions of the debt policy of Russia, the state debt policy in 2012-2014. will be aimed at ensuring financing of the federal budget deficit by attracting resources in the Russian and international capital markets on favorable terms, ensuring the optimal ratio of duration and profitability of sovereign debt obligations, maintaining a high level of the country's credit ratings, and creating adequate benchmarks for the level of credit risk for Russian corporate borrowers.

At the same time, the task of improving the system for monitoring external borrowings of the corporate sector, creating a mechanism for operatively influencing the borrowing policy of Russian corporations and banks with a large share of state participation will be solved.

An effective solution to the problem of minimizing the constantly growing costs of repaying and servicing public debt, as well as the costs of managing the risks inherent in sovereign debt obligations, dictates the need for a transition to the practice of using so-called active operations with public debt. Their main content lies in the targeted impact on the structure of debt (by maturity, currencies and instruments used, interest rates, etc.).

The experience of a number of foreign countries shows that in this context, the creation of a state-controlled specialized market institution with the necessary set of powers and human resources is of key importance. With regard to our country, we are talking about JSC Russian Financial Agency (RFA), a political decision, the creation of which was made back in 2008. This institution is assigned, on the one hand, the role of a “front office” responsible for interaction with investors and other participants in financial markets.

Its activities will be designed to form and maintain an adequate perception by the investment community of Russia's credit risk. On the other hand, in the future, the RFA will take over the functions of the main consultant of the Ministry of Finance of Russia on the optimization of the structure and reduction of costs for repayment and servicing of the state debt, and minimization of interest and currency risks of the federal budget.

It is planned that the RFA will carry out internal and external government borrowing on behalf of the Russian Federation, that is, place government securities, as well as conduct transactions with these securities in the secondary market in order to optimize the structure of the government debt portfolio. As the necessary prerequisites and conditions are created, RFA will invest part of the funds of Russian sovereign funds.

In the event that the corresponding draft law developed by the Ministry of Finance of Russia is adopted in the coming period, such an institution will be established by the Government of the Russian Federation and will begin to develop its activities.

Public debt is also divided into capital and current.

Capital debt is the total amount of issued and outstanding government debt, including interest.

Current debt is the expense of paying income and paying off obligations.

Capital debt includes the entire set of government debt as of a certain date; the current one consists of payments under the obligation

benefits that the borrower is obliged to repay in the reporting period.

According to the level of management, public debt is divided into:

public debt of the Russian Federation (central government debt);

public debt of a constituent entity of the Russian Federation (a set of debt obligations of a constituent entity);

municipal public debt (a set of debt obligations of a municipal entity).

The debt of the subject of the federation and the municipal debt consist of the corresponding credit agreements and contracts; loans of a constituent entity of the Russian Federation or a municipality and reissued debt obligations of third parties into the debt of a constituent entity of the Russian Federation or municipal debt.

2. Public debt management

2.1 Securing public debt

The RF government debt is managed by the RF Government. The state debt of the Russian Federation is secured by all federal property that makes up the state treasury.

The state debt of a constituent entity of the Russian Federation is managed by the executive authority of the constituent entity of the Russian Federation. The state debt of a constituent entity of the Russian Federation 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 the treasury of a constituent entity of the Russian Federation.

Municipal debt management is carried out by the authorized body of local government. 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.

The Russian Federation is not responsible for the debt obligations of the constituent entities of the Russian Federation and municipalities, if these 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 these obligations were not guaranteed by them, as well as for the debt obligations of the Russian Federation.

The amount of public debt is considered acceptable if there are sources of repayment of both the principal and interest on it.

The sources of repayment of the principal amount of the debt include the size of the gross domestic product, the level of exports of goods and services, and the gold and foreign exchange reserves of the state. Sources of debt service (interest payments) include tax revenues and the level of monetization of the economy.

When assessing the security of public external debt, such indicators are used as the ratio of the amount of external debt and the volume of exports of goods and services; the ratio of the size of external debt to GDP; the ratio of the amount of payments in order to service the debt and the volume of exports of goods and services.

To assess the security of domestic debt, it is compared with the budget revenues received in monetary form and the level of monetization of the economy.

Consideration should be given to the degree of approach to the "hazard boundary" beyond which the risk of default occurs. It is considered unacceptable that the external debt exceeds GDP by 50%. In other sources - 80% (see paragraph 2.3.). In Russia - 65%.

As follows from the practice of most countries, debt of the order of 50-70% of GDP is usually not a cause for concern.

2.2 Ways to reduce debt dependence

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.

The country's debt policy is a system of government measures to maintain the amount of debt necessary and acceptable for the country's finances and the cost of servicing it.

The payment of income on loans and their repayment are usually made at the expense of budgetary funds. Methods for restructuring and refinancing public debt can also be used. To achieve the effectiveness of public credit, public debt management measures such as conversion, consolidation, unification, exchange of bonds at a regressive ratio, deferral of repayment and cancellation of loans are also used. They are designed to ease the debt burden on the government budget.

Refinancing - issuing new loans in order to attract financial resources to pay off existing debt.

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 is actively used in the payment of interest and redemptions on the external part of the public debt. However, an indispensable condition for the provision of new loans is the good reputation of the debtor country in the circles of the international financial market, its economic and political stability.

Restructuring is the repayment of debt obligations while simultaneously borrowing or assuming other debt obligations in the amount of debt obligations to be repaid with the establishment of other service conditions and maturity dates. Debt restructuring can be carried out with partial write-off or reduction of the principal amount.

Conversion usually refers to the change in the yield on loans. In order to reduce the cost of public debt management, the government most often reduces the amount of interest paid on loans. Such an operation was carried out, for example, in 1990, when the yield on bonds of a 3% winning loan was increased to 9%, and on Treasury bonds - from 5 to 10%.

It is also possible to exchange the main part of the bonds for bonds of another issue, which do not cover the entire amount of the debt, but have high security, as well as early redemption of bonds from creditors at a discount.

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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. Thus, consolidation refers to the change in the terms of loans associated with these terms. For example, in 1938 there was a consolidation of freely circulating loans with the exchange of old bonds for new ones, the term of which was doubled (up to 20 years). However, the reverse operation is also possible - decreasing the validity period of government securities. So, in 1990, the term of functioning of treasury bonds was reduced from 16 to 8 years.

It is possible to combine consolidation with conversion. Such an operation was carried out, for example, in 1936, when the bonds of seven government loans, placed among the population by subscription with an installment plan, were exchanged for bonds of a new loan with a lower yield and doubling (up to 20 years) the term of the securities.

Types of public debt

The functioning of the mechanism of public credit leads to the formation of public debt.

State debt - the amount of issued but not repaid state loans with accrued interest, which must be paid together with interest by a certain date or after a certain period.

Distinguish between capital and current government debt.

Capital public debt is the entire amount of government debt issued and outstanding, including accrued interest on them, at a specific date.

Current public debt is the cost of payment of income to creditors on all debt obligations of the state and on the repayment of obligations that are due.

The national debt of Russia includes federal debt (debt of the Government of the Russian Federation), the state debt of the constituent entities of the Russian Federation and the debt of municipalities.

Public debt, depending on the type of currency, is divided into interior debt (expressed in RF currency) and external debt (denominated in foreign currency).

External debt - it is a debt to foreign states, organizations, individuals. It is very burdensome for the country, since it is necessary to give away valuable raw materials, goods, provide certain services in order to pay interest and pay off debt. If payments on external debt account for 20-30% of receipts from foreign economic activity, then the country falls into the category of debtors and it will be very difficult for this country to attract new loans.

Domestic debt states are a debt to their people, i.e. debt obligations of government bodies to legal entities and individuals.

Debt obligations of the state are as follows:

• Loans received by the government.
• Government loans made by issuing securities on behalf of the government or the Central Bank.
• Other debt obligations guaranteed by the Government of the Russian Federation.

Domestic debt necessitates the redistribution of income within the country.

Classification and types of public debt

There are the following main types of public debt, depending on the basis of the classification (Fig. 1).

Internal and external public debt - the most significant classification of government debt obligations by source of borrowing. In the Russian Federation, debt obligations denominated in foreign currency are accounted for as external debt; debt obligations in ruble terms are included in domestic debt. In addition to the loan currency, this classification may take into account another criterion - the category of holders of government securities or creditors (residents or non-residents).

Depending on the frequency of servicing and repayment of debt obligations, the state debt can be divided into its capital and current components. Capital government debt - the entire amount of issued and outstanding government debt obligations, including accrued interest on these obligations. Current debt includes debt obligations of the state, which are due.

Figure: 1. Classification of public debt

Active and passive government debt - characteristics of debts depending on their socio-economic importance and use as an instrument of the state's economic policy. The active component of the public debt is borrowings placed to finance specific socio-economic programs, investment projects, the implementation of which is designed for the medium and long term. Passive public debt - raising loans to finance current expenses and cover the budget deficit.

Of certain importance for characterizing the general state of the state's debt dependence is net public debt concept - a positive or negative value, determined by subtracting from the total volume of debt obligations and foreign assets of the state, the amount of debts of other countries to this state. In practice, the concept of "net borrowing" is also often used as the difference between attracting and repaying debt obligations.

Speaking about the total volume of debt obligations and taking into account the different level of their management, the concepts municipal, state and national debt. The latter concept is broader and includes not only the debt of the Russian Federation, but also of the constituent entities of the Russian Federation, as well as municipalities.

In addition, as the practice of public debt management shows, this classification requires clarification and addition by including debt obligations in the national debt.
state enterprises. So, according to international standards, external debt of the public sector in the extended definition covers the external debt of government, monetary authorities, and those banks and non-financial enterprises in which government and monetary authorities directly or indirectly own 50 percent or more of capital or otherwise control it.

Within each type of public debt, one can distinguish forms of debt obligations. So, debt obligations can exist in bonded and non-bonded forms: securities, commercial, financial and budget loans, budget loans, guarantees and sureties.

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Debt obligations can also be grouped depending on the conditions of their functioning. So, for example, bonded loans are usually classified as follows:

• by issuers - central and territorial;
• marketability - market and non-market;
• categories of creditors;
• registration - documentary and non-documentary;
• urgency - short-term (with a circulation period of up to one year), medium-term (from one to five years) and long-term (more than five years);
• yields - coupon (interest), zero-coupon (no-interest, zero coupon) and winning;
• terms of repayment - with the right of early repayment and without the right of early repayment, etc.

Thus, the classification of public debt can be built on several detailed levels (steps), which is of no small importance for the correct and complete accounting of public debt and effective management of it. It should be noted that the Russian Federation has not yet created a universal system that meets the requirements of world standards for accounting for debt obligations of government bodies at all levels. The Budget Code of the Russian Federation establishes only general requirements regarding the structure of state and municipal debt and the need to maintain a debt book.