State loan- a set of credit relations between the state, on the one hand, and legal entities and individuals, on the other, in which the state acts as a borrower, lender or guarantor. The entire above-mentioned set of relations can be called state finance in the broad sense of the word, and state finance in the narrow sense - its “classical” form, when the state acts as a borrower and guarantor. The latter prevails in the entire set of state credit relations. The volume of government lending to legal entities and individuals is significantly less. In cases where the state assumes responsibility for repaying loans and other obligations of legal entities and individuals, it acts as a guarantor. Government borrowings of Russia are loans and credits attracted from individuals and legal entities, foreign states, international financial organizations, for which debt obligations of the Russian Federation arise as a borrower or guarantor of repayment of loans (credits) by other borrowers.

The most important reason for the development of public finance in the narrow sense of the word is the deficit of the state budget. The deficit can be covered in two ways: either by issuing money or by borrowing. The first method, under certain conditions, can directly lead to increased inflation; the second - not always and indirectly. Therefore, borrowings are more widely used in world practice. The government borrows money in the form of loans and issuing debt. In the first case, these are loans received by the state from creditors (for example, from the Central Bank, a foreign state, etc.). The second is associated with the issue of securities and their placement among the population or financial and credit organizations. Both of these forms have the same economic content. It consists in the receipt of borrowed resources into the budget and the corresponding increase in public debt in the form of credit obligations for loans or debt obligations for securities. GK can be internal, when the creditors are resident legal entities and individuals. It can also be external (international), when non-residents act as creditors. In this case, borrowers can be both federal and subfederal governments and local authorities. Lenders are governments, financial and credit organizations, other legal entities and individuals of foreign states, international and regional financial organizations (IMF, World Bank, EBRD, etc.).

As an economic category, finance in the narrow sense of the word is at the intersection of finance and credit, integrating their features. On the one hand, according to its intended purpose, it is an instrument for the formation of state monetary funds, and therefore a link in the state financial system. But on the other hand, according to the methods of this mobilization, it represents a form of credit. G.K. differs from such classical financial categories as taxes, excise taxes, duties, because it is voluntary, repayable and paid in nature. It is also different from other forms of credit. Thus, a private loan, as a rule, is strictly targeted. State funds, as a rule, do not have a specific target nature, being intended to cover the deficit of the corresponding budget. A regular loan is issued against specific material security (inventory, finished products, real estate, securities, etc.) and is of a productive nature. Security for civil rights is provided by all the property of the state or its territorial subject. It is intended to cover the budget deficit and is unproductive. This determines the sources of repayment of the state debt and interest on it and the role of state finance in the development of the economy. Financial capital (in the narrow sense of the word) is not invested in production, is not reproduced, does not increase, as with private credit, but is only spent and consumed. Therefore, the sources of repayment of the loan and interest on it are not the surplus value created with the help of borrowed capital, as is the case with normal conventional lending, but taxes. This is why it is called future taxes. Of course, based on this alone, one cannot draw a conclusion about the uselessness or negative impact of state capital on the development of the country’s economy. If world practice indicates its widespread use to finance budget expenditures, then this is a natural and generally necessary process. But at the same time, every new government borrowing must be economically and socially justified. Acting as a borrower in the financial market, the state increases the demand for borrowed funds and thereby not only contributes to an increase in the price of credit, but can also absolutely reduce the volume of credit resources for the economy. Moreover, if government borrowing is carried out at interest rates that exceed the rate of return in productive industries, this leads to a huge flow of capital from the “real economy” to the speculative financial sector. Ultimately, state tax revenues are pumped into the accounts of lending domestic and foreign organizations, as happened in Russia in the second half of the 90s. the past century.

TOPIC 8.

Lecture outline:

1. The essence of state credit and its functions.

2. Forms of government credit.

3. Classification of government loans.

4. Public debt management.

Question 1.State credit- this is a set of economic relations between the state (represented by state authorities and local self-government), on the one hand, legal entities, individuals and other entities, on the other hand, in which the state acts as a borrower, lender or guarantor.

Depending on the role of the state in the state. credit relations, government credit takes 3 forms:

1. government loans;

2. government lending;

3. state guarantees.

State a loan differs from a regular loan in that it is an integral category that combines the essential features of both finance and credit.

From state finances credit has taken on features that are associated with financial relations at the macro level, i.e. state credit relations serve the processes of redistribution of GNP, income at the macro level and the processes of formation and use of centralized monetary funds of the state.

At the same time, Mr. a loan differs from a bank loan in some significant ways.

Differences state. loan from bank loan:

1. By the nature and purposes of using borrowed funds.

In bank lending, funds are taken for productive use in the production and economic activities of the subject.

Under the state A loan is, most often, an unproductive use of funds, mainly to cover the budget deficit.

2. By sources of interest payment and loan repayment.

A loan taken from a bank by a legal entity is repaid from its own income.

Under the state In a loan, the source of funds to repay the loan is budgetary funds.

3. In government relations. credit prevails and is dominated by the state, despite the fact that it is the borrower. This is expressed in the fact that it, at its discretion, can change the original terms of the loan without asking the consent of the lender. This applies to domestic loans.

4. State loans are concluded without any specific collateral.

Bank loan agreements must be secured through some type of collateral. Bank loan agreements are always voluntary, and state. loans are sometimes forced.

In economics there has never been an unambiguous attitude towards the problem of government. loan. The assessment of its role in the economy and social sphere has always ranged from extremely negative to exaggeratedly positive. Currently, everyone recognizes the objective need for a loan, while it is emphasized that using the state. Credit instruments need to be used competently and carefully.

Positive features of the state. loans are:

State credit, when used wisely and competently, acts as a powerful tool for regulating the economy, money circulation, and social processes;

State loans act as non-emission means of covering the budget deficit.

Negative features of government loan:

At the expense of the state. loans increase the borrowed funds of the state that are subject to repayment, and therefore huge funds are tied up in the budget, which could be used for productive and social purposes;

Since the source of funds for repaying loans are budget funds, in order to attract them to the budget it is necessary to maintain a fairly high level of taxation.

State credit fulfills 3 main functions:

1. distribution,

2. control,

3. regulating.

Distribution function of the state. loan, in general, it is expressed in the same way as the distribution function of finance. That is, through this function of the state. the loan redistributes the cost of GPs, ND in cash to different levels in different areas, according to different purposes.

One of the features of the distribution function of the state. credit manifested in long-term loans is as follows: with the help of long-term loans, the tax burden is more evenly redistributed between generations.

Long-term loans are used to invest in large and effective projects for the construction of economic and social facilities, the results of which will be enjoyed by more than one generation.

After a long time, the moment of repayment of borrowed funds comes. The source for paying off the debt is budget funds, and they come to the budget mainly through taxes.

Thus, the tax burden falls on the shoulders of subsequent generations that are currently economically active, which is fair, because the results of investments raised through loans are enjoyed by all generations.

Control function of the state. loan is expressed in control through quantitative and cost indicators of funds circulating within the state. loan.

Regulatory function of the state. loan is that through it the state regulates economic and social processes at the macro level, as well as monetary regulation in order to implement financial policy.

State credit acts as an effective tool for regulating money circulation when attracting government. loans, depending on the source of raising funds and the location of their placement, the money supply in circulation may change.

Using the government tool. loans, the state can significantly influence the situation on the loan capital market.

Acting as a borrower in the financial and credit market, the state influences demand, sharply increasing it.

With a limited supply of credit resources, their price increases. That is, credit resources become very expensive, and high bank interest rates are established. The high cost of credit resources makes it impossible for legal entities and individuals to attract them, which leads to an economic recession, decreased employment and other negative economic and social consequences.

Acting as a lender and guarantor, the state has a positive impact on the economy and social sphere.

By providing lending and guarantees for loans from regional executive authorities, the state influences the territorial structure in the economy and social sphere towards its equalization.

Question 2. State guarantees - this is a form of state. credit relations in which the state acts as a guarantor for the debt obligations of third parties. The status of a guarantor means that he undertakes to repay the debt if the borrower is unable to do so.

1. Traditionally, the state guarantees the population’s deposits in a savings bank and deposits in state insurance organizations for accumulative types of insurance.

2. In order to stimulate, create and operate financial and industrial groups, state guarantees are provided for investment lending.

3. The state acts as a guarantor for loans provided by commercial banks to regional administrations.

4. In order to support small businesses, the state also provides guarantees to foreign credit organizations that provide loans to constituent entities of the federation.

Guarantees in the amount of at least 200 thousand dollars.

Thus, state guarantees are used by the state to implement a policy of protectionism, either to support the population, or to pursue an economic and social policy of support and development of territories.

State lending This is a state form. credit relations in which the state acts as a creditor of legal entities and government bodies. authorities and local government, as well as non-residents, i.e. persons located outside the Russian Federation.

State lending is carried out both externally and internally.

Domestic lending is the provision of borrowed funds and loans to legal entities of one’s country, as well as to government agencies. authorities (executive authorities) and local self-government.

External lending is the provision of loans by the government of a given state to the governments of foreign states, their legal entities and international financial and credit organizations.

Under the state When lending, a loan agreement is drawn up, which contains all the conditions for issuing a loan.

State loans can be short-term, which are provided for a period of no more than 1 year within the current financial year, and long-term, which are provided for a period of more than 1 year and up to 30 years.

State loans can be provided and also repaid in both monetary and commodity form.

The third form of state loans - this is a form of state. loan, where the state acts as the borrower, and the lenders are residents and non-residents.

State Loans can be internal or external.

Internal government loans are loans from the state represented by executive authorities from individuals and legal entities of their own country, as well as from government agencies. authorities and local government at other levels.

External government loans are relationships in which the borrower is the state represented by the government of the Russian Federation or executive authorities at another level, and the creditors are the governments of foreign states, their legal entities and international monetary financial and credit organizations.

Question 3. State loans are issued in the form of the issue and placement of government debt obligations (government bonds and government treasury bonds).

The most commonly used type of debt security is a bond. Bond - this is a document certifying the loan relationship between the lender and the borrower, and giving the lender the right, after a specified period, to receive back the amount of the debt, as well as interest on it.

State classification loans:

1) At the place of placement, all state. loans are divided into internal and external.

2) By subject of issue: - loans from the government of the Russian Federation or federal loans,

Loans from national-state and administrative-territorial entities (subjects of the Russian Federation),

Loans from local governments.

3) According to the validity period, they are distinguished: - short-term (for a period of up to 1 year), - medium-term (from 1 to 5 years), - long-term (from 5 to 30 years). Short-term loans are taken, as a rule, to cover the budget deficit and finance current temporary gaps between budget revenues and expenses. Short-term loans usually have high interest rates. Medium and long term loans are usually used for productive purposes, i.e. for investing in major economic and social events, for financing long-term targeted programs.

4) By placement subjects: - loans placed only for legal entities, - loans placed only among individuals, - loans placed among legal entities and individuals.

5) According to the form of income payment: interest (coupon), winning, with a zero coupon.

6) By placement methods: voluntary, forced, subscription.

7) According to the documented form: documentary (bonded), undocumented (non-bonded).

8) By security of debt obligations: secured and unsecured loans.

Question 4. To conduct an effective financial policy in the field of state and municipal borrowing, the process of managing public debt is of particular importance. Public debt management in a broad sense refers to the formation of one of the areas of the state’s financial policy related to its activities as a borrower, lender and guarantor.

Public debt management in the narrow sense is a set of government actions to repay government loans, organize the payment of income on loans, carry out restructuring of public debt, as well as issue and place government loans.

Management of the public debt of the Russian Federation is carried out by the Government of the Russian Federation, management of the public debt of a constituent entity of the Russian Federation is carried out by the executive body of the constituent entity of the Russian Federation. Municipal debt management is carried out by an authorized local government body.

The Russian Federation is not responsible for the debt obligations of the constituent entities of the Russian Federation and municipalities if such obligations were not guaranteed by the Russian Federation. Subjects of the Russian Federation and municipalities are not liable for each other’s debt obligations if such obligations were not guaranteed by them, as well as for the debt obligations of the Russian Federation.

Ineffective management of public debt leads to serious consequences, the main of which are:

· Shifting the tax burden to future generations.

· Redistribution of income among the population.

· Crowding out (reduction) of private investment due to the issue of government securities.

Public debt must be competently and purposefully regulated by the state. The main tasks in managing public debt are as follows:

1. minimizing the cost of debt;

2. preventing the stock market from overflowing with borrowed obligations of the state, as well as preventing sharp fluctuations in their exchange rate;

3. ensuring timely repayment of public debt;

4. effective use of mobilized funds and strict control over their use.

The task of effective use of borrowed funds is extremely important and urgent.

Two main indicators have been adopted that characterize this effectiveness:

1. loan efficiency

where P – revenues from the state system. loan, P – expenses under the state system. loan.

2. external debt servicing ratio (2),

where Pl is the amount of payments for external government. debt,

V is the volume of foreign exchange earnings of the state from the export of goods and services.

Also, as part of public debt management, the following indicators are calculated, characterizing the level of debt sustainability of the state:

Debt sustainability indicators

When crisis financial phenomena occur and there are no real possibilities for timely repayment of debt, there is a need for it restructuring.

Restructuring- this is a set of measures to change the conditions and parameters of government loans, aimed at easing the debt burden for the state or increasing the efficiency of loans.

Debt Management Techniques.

1. Refinancing public debt means the issuance and placement of new debt obligations to raise funds to cover previously issued debt obligations.

2. Conversion– change in loan profitability upward or downward.

3. Consolidation– changing the loan term upward or downward.

4. Loan unification- this is the combination of several loans into one with the exchange of old bonds for new ones. As a result of this operation, a consolidated (or funded) debt is formed.

5. Exchange of bonds using a regressive ratio. As a rule, this method is used when carrying out monetary reform. Several previously issued bonds are equal to one bond of the same loan. 2 – 5 methods are used only for domestic loans.

6. Deferment in loan repayment- This is a postponement of the loan repayment period to a more distant time. In this case, from the moment the deferment is announced until the rescheduled moment, the loan is terminated.

7. Loan cancellation- forgiveness of debt by the creditor. The debt is non-refundable.

In order to regulate the amount of public debt, it is established maximum volume. The maximum volumes of public internal debt and external debt for the next financial year are approved by the federal law on the federal budget, with a breakdown of debt by form of security for obligations. The law of a subject of the Russian Federation on the budget, the legal act of a local government body on the local budget establishes the upper limit of the debt of a subject of the Russian Federation, municipal debt. The maximum volume of public debt of a constituent entity of the Russian Federation, municipal debt cannot exceed the volume of revenues of the corresponding budget without taking into account financial assistance from the budgets of other levels of the budget system of the Russian Federation.

Emission state and municipal securities are produced upon approval by federal law, the law of a constituent entity of the Russian Federation or a decision of a local government body on the budget of the following indicators:

The maximum amount of the corresponding state or municipal debt;

The maximum volume of borrowed funds allocated by the Russian Federation, a constituent entity of the Russian Federation or a municipal entity in the current financial year to finance the budget deficit of the corresponding level;

Expenses for servicing state and municipal debt in the current year.

If, when executing the budget of a subject of the Russian Federation or a local budget, the costs of servicing the public debt of the subject exceed 15% of the expenses of its budget, as well as in the event of exceeding the maximum amount of borrowed funds, and at the same time the subject of the Russian Federation is not able to provide servicing and repayment of its debt obligations, the authorized body The state authorities of the Russian Federation may apply the following measures:

Schedule an audit of the budget of a constituent entity of the Russian Federation;

Transfer the execution of the budget of a constituent entity of the Russian Federation under the control of the Ministry of Finance of the Russian Federation;

Take other measures provided for by budget legislation.

All receipts of funds into the budget from borrowings and other debt obligations, including funds spent on servicing and repaying state or municipal debt, are reflected in the budget as sources of financing the budget deficit.

All expenses for servicing debt obligations, including the discount on discount securities, are reflected in the budget as expenses for servicing state or municipal debt.

The repayment of public debt obligations of the Russian Federation is taken into account in the federal budget by subtracting the amount of repaid obligations from the amount of receipts from sources of financing the federal budget deficit and is reflected accordingly in the Program of State Internal or External Borrowings of the Russian Federation.

All expenses for repaying the obligations of the state debt of the constituent entities of the Russian Federation, municipal debt are taken into account in the expenditure side of the budgets of the constituent entities of the Russian Federation, local budgets as expenses for repaying the state or municipal debt.

5. Differences between a government loan and a bank loan

6. Legal basis for state loans

7. State loan in the Republic of Belarus

8. State loan in Ukraine

9. State loan as a regulatory system

For the borrower when purchasing government securities, there are other risks, for example, credit, market, interest. The credit inherent in securities is related to the likelihood that financial capabilities issuer(states) will shrink so that he will be unable to meet his financial obligations.

Credit risk associated with state obligations arises from the characteristics of the debtor and issuer, from the nature of the economic objects on which the obligations rest, from the ability to collect taxes and receive loans. Market risk occurs due to unforeseen changes in the securities market or economy; the attractiveness of government securities as an investment may be partially lost, so that they sale will become possible only with a reduction in price or, to a certain extent, by force. Interest rate risk is the risk of changes interest rates and the associated risk of a decline in their market price. The reasons for this are the fixation of interest on bonds in a contractual manner at the time of their monetary issue and the relative freedom to fluctuate market rates up and down.

In the process of investing in securities, you should follow the rule of diversification of investments, i.e. reducing the risk of serious losses. This can be achieved by spreading your investments across many different securities. It is advisable to limit investments by type of securities, economic sectors, regions, and maturity of debt obligations.

The Republic of Belarus as a sovereign state also uses loans, both short-term and long-term.

The issue of government short-term bonds is carried out in order to attract temporarily available funds from legal entities and individuals, including foreign ones, to compensate for the republican budget deficit. Bonds are issued by decision of the Cabinet of Ministers of the Republic of Belarus of the Ministry of Finance, are government securities and are placed among investors on a voluntary basis. Monetary bonds are carried out in the form of entries in accounts. Primary placement occurs through their sale at the competition investors- auction participants. During the initial placement, bonds are sold on a discount basis (at a price below par) at the prices offered at tender prices, but not lower than the prices set by the Ministry of Finance on the day of the auction. The issue of bonds is considered completed if a certain share of their total number is sold during the initial placement. Primary investors have the right, in accordance with the procedure established by law, to sell bonds on the secondary securities market through exchanges. The National Bank, as the central depository, in agreement with the Ministry of Finance, can sell bonds on the secondary securities market that were not sold during the initial placement, during their circulation period, at prices not lower than the prices on the day of the auction. The government undertakes to repay the bonds upon maturity. Investors receive profit in the form of differences between prices sales (redemption) and purchase prices of bonds. Rating increase government short-term bonds is associated with the stabilization of exchange rates of the Belarusian ruble to foreign currencies, which leads to an outflow of funds from the foreign exchange sector of the market, as well as with a decrease in inflation and the introduction of positive investment rates for the national bank.

Issue of long-term loan bonds RB is carried out with the aim of reducing inflation and executing the republican budget for expenses with a maturity of one year or more. determines the volume, date of issue of bond securities, circulation and maturity dates, par value of one bond, interest rate. Production volumes are taken into account when forming the republican budget. The initial placement of bonds is carried out by the Ministry of Finance (the main state treasury) by crediting a certain number of bonds to special accounts of primary holders opened in the depository (national bank).

The issue of long-term Federal Loan bonds is carried out in the form of entries in accounts without the use of forms. In circulation, bonds can be used by primary holders when paying for goods (works, services), and can also be the subject of collateral obligations. The bonds are repaid by the national bank at the nominal value of the bonds, increased by the amount of the interest rate established when the bonds were issued. Upon expiration of the circulation period, the Ministry of Finance allocates the necessary funds to the national bank.

Long-term bonds are a source of non-inflationary financing of the state budget deficit. With their help, it is possible in a civilized way to defer payments on existing public debt, increase the terms of government borrowing, and reduce non-payments in the country.

Development securities market pursues the goal of consolidating positive trends in stabilizing monetary and credit relations; expand non-inflationary coverage of the state budget deficit through the issue of highly liquid securities; further development securities market.

The secondary market for government securities of the Republic of Belarus was formed in 1994, immediately after the first issue of government securities short-term bonds. Operations for the secondary circulation of GKOs were carried out at OJSC Belarusian Stock Exchange and CJSC Interbank Currency Exchange. The monetary issue of state bonds in 1994 amounted to 11.4 billion rubles. and 32 transactions were concluded on the secondary market. At the same time, the accumulation of experience and development of regulatory documents on the formation of the secondary market began. Due to the insignificant volumes of issue of government securities, the secondary market did not have proper development at that time.

In 1995, after taking a number of measures aimed at developing the securities market, it took one of the leading places among other investment objects. The activation of the secondary market was greatly influenced by preferential taxation of income received from transactions with these securities. The monetary issue of government debt obligations amounted to 1,680.5 billion rubles, about 1,500 transactions were registered on the exchanges for a total amount of 2.7 trillion. rub. Having formed as a mechanism for attracting free funds to finance the state budget deficit, the government securities market is gradually taking a leading role in the state's monetary system. The decision of the national bank approved the “Regulations on operations of the national bank of the Republic of Belarus with securities on the open market,” where stabilization of monetary relations and operational regulation of the volume of the monetary aggregate were recognized as the goals of their implementation. Since the end of September 1995, the National Bank began conducting regular operations on the open market. At the end of 1995, the concept was adopted additional capital investment national bank of commercial banks.

The most promising form of providing banks with financial resources is the repurchase of securities on repo terms. This advantage becomes more and more noticeable as the volume of monetary issue of government securities increases and their differentiation by profitability and terms. Therefore, for REPO transactions, this is the lower limit of the base rate reinvestment of capital. In 1996, the issuance of government debt continued to increase its pace. The monetary issue of GKOs amounted to 6032.03 billion. Rub. The secondary market is also gaining momentum. However, there were difficulties for business entities in determining the current value of GKOs. Operators of the secondary market entered into transactions for the purchase and sale of securities at prices not on the exchange market due to the absence of the exchange market, although the latter should be a kind of beacon for determining the value of securities (fluctuations between the minimum and maximum prices of individual monetary issues sometimes reached 25%).

By decree president Republic of Belarus dated 04/09/96 No. 139 “On the transformation of CJSC Interbank Currency Exchange” CJSC Interbank Currency Exchange was transformed into the state institution Interbank Currency Exchange (GU MICEX) and transferred to the jurisdiction of the national bank. From that moment on, the national bank was actively involved in the process companies secondary market for government securities in the Republic of Belarus. To eliminate the shortcomings that have a negative impact on the government securities market, the National Bank began to create a trading system based on the Main Office of the Moscow Interbank Currency Exchange, which allows its participants to make an unlimited number of transactions with government securities during the trading session, and to carry out settlements on them and funds once after closing trading positions. The creation of an exchange system will increase the capacity of the government securities market, make it more dynamic, liquid and interesting for a wide range of investors, will eliminate the risks of non-delivery of securities and money, which is very important at the present stage of development not only for the securities market, but also for the entire spheres of monetary relations of the Republic of Belarus.

Therefore, in order to streamline operations with government securities and securities of the national bank of the Republic of Belarus, ensure state regulation and companies secondary market:

in the first quarter of 1997, the electronic information system of the Main Office of the Moscow International Bank was put into operation and is being operated on a daily basis, which allows the company to streamline the secondary market of GKOs in terms of issuing quotations by primary investors;

a joint resolution of the Council of Ministers of the Republic of Belarus and the national bank was issued “On the market for government short-term bonds of the Republic of Belarus and securities of the national bank of the Republic of Belarus” dated October 1, 1997 No. 1305/23, it defines: circulation of new issues of state bonds and securities of the national bank in the secondary market are carried out through the trading system of the Main Office of the International Foreign Exchange;

by the decision of the Board of the National Bank dated September 24, 1997, the “Temporary Regulations on the Circulation of Government Securities and Securities of the National Bank of the Republic of Belarus through the Main Directorate of the Moscow International Bank” was approved; it reflected the main points (trading participants, types of transactions that can be made on the exchange, settlement procedure) aimed at further improving and establishing transparency of the secondary market;

By decision of the Board of Directors of the National Bank dated October 24, 1997 No. 42.1, the “Procedure for carrying out transactions for the purchase and sale of government securities and securities of the national bank of the Republic of Belarus in the Main Directorate of the International Foreign Exchange” was approved, which describes in detail the procedure for the functioning of the trading system for government securities.

In addition, in order to increase investor interest in purchasing securities and increasing liquidity of this market the following activities have been implemented:

The national bank of the Republic of Belarus provides pawn loans against debt security government securities;

The system of funds in the formation of a fund of required reserves in commercial banks used for the purchase of government securities is being improved.

All of these steps are aimed at increasing the liquidity of government securities and will allow us to streamline the secondary market for government securities in the near future, begin full-fledged exchange trading, narrow the spreads established by secondary market operators for each issue of securities, which will entail a reduction in price fluctuations on this market and will provide the national bank with better levers of monetary regulation.

Open market transactions in government securities are also carried out to manage liquidity banking system.

Public credit forms part of the public debt (domestic). A significant proportion of public debt consists of external loans, which are associated with the development of international lending.

International loan - loan movement capital in the field of international economic relations, associated with the provision of currency and commodity resources for temporary use on the terms of their payment, urgency, guarantee of repayment, purposefulness.

The objective basis for the development of international relations were: production going beyond national boundaries, strengthening world economic ties, deepening the international division of labor, international socialization of capital, specialization and cooperation of production.

The subjects of credit relations are states, banks, international and regional monetary and financial firms, and individual legal entities. An international loan is provided at the expense of the state, firms, enterprises, collective loan funds accumulated in international monetary and financial organizations.

The positive role of an international loan in accelerating the development of productive forces by ensuring the continuity of the reproduction process and its expansion.

An interstate loan is characterized by the fact that the subjects of credit relations are individual states, and the object of redistribution is their national profit.

Foreign loans are attracted to the Republic of Belarus (based on agreements between the government of the Republic of Belarus and the government of other states) to support economic reforms, transition to a market economy, solve problems associated with the implementation of structural restructuring of the economy, technical re-equipment and modernization of industry and agriculture, introducing modern technologies , as well as the development of export potential, saturation of the domestic market goods consumer consumption, development of small and medium-sized businesses, etc.

Decisions on the attraction and subsequent use of foreign loans that form the external debt of the Republic of Belarus, as well as on the provision of government guarantees in relation to foreign loans, are made by the Cabinet of Ministers of the Republic of Belarus in agreement with president RB on the basis of proposals from the Currency and Credit Commission of the Cabinet of Ministers of the Republic of Belarus.

State loanin Ukraine

state credit reflects credit relations regarding the accumulation by the state of funds on the basis of repayment to finance government expenditures. The borrowers are individuals and legal entities, the creditor is the state represented by its bodies (Ministry of Finance, local (municipal) authorities). For the lender, this form of loan allows you to mobilize additional monetary resources to cover the budget deficit without using paper money for these purposes, for non-inflationary monetary circulation through open market operations and the formation of a financial market. In the context of the development of the inflationary process, government loans from the population temporarily reduce their ability to pay. demand. Excess is withdrawn from circulation, i.e. funds are diverted from cash circulation for a predetermined period. An excessive increase in public debt, at the same time, can lead to payments on obligations, the amount of which will be greater than the proceeds from loans, which will negatively affect the state of the state’s finances.

State loan– a set of economic relations between the state represented by its authorities and management and individuals and legal entities, in which the state acts as a borrower, lender and guarantor.

In quantitative terms, the activity of the state as a borrower of funds predominates. The volume of transactions as a lender, i.e. when the government provides loans to legal entities and individuals, is significantly lower. In cases where the state assumes responsibility for repaying loans or fulfilling other obligations undertaken by individuals and legal entities, it is the guarantor.

When borrowing funds by the state, all property in its ownership or in the ownership of a territorial unit serves as collateral for the loan.

The basis of a state loan is its repayment and payment (the deposited amount is returned with interest). However, government loans are distinguished by lower interest rates due to the socio-economic significance of the project being financed (development of small businesses, strategic and socially significant industries, exports).

Through the distribution function of state credit, the formation of centralized monetary funds of the state is carried out and their use is carried out on the principles of urgency, payment and repayment. The population pays for servicing the public debt through taxes, and the state's creditors receive income in the form of interest.

By entering into credit relations, the state influences the state of money circulation, the level of interest rates in the money and capital markets, production and employment.

The following options for influencing monetary circulation are possible:

1) an absolute reduction in the cash supply occurs if money is borrowed from individuals and used to finance investment projects of legal entities;

2) the volume of cash money supply does not change if a loan from individuals is spent on wages in the public sector, transfers to the population;

3) the volume of cash money supply increases if the state borrows from legal entities and allocates funds for payments to the population.

In general economic terms, state credit is an effective tool for industrial restructuring, production conversion, and support for domestic producers.

Depending on the goals, tools, and methods of implementation, government credit can have a positive or negative impact on the socio-economic development of the country. The control function of state credit is carried out by financial institutions, credit institutions, and government authorities. The budget law for the corresponding financial year sets the limits on external and internal debt and government guarantees.

4.2. State as a borrower

The Russian Federation mobilizes borrowed funds mainly in two ways:

1) placement of debt securities;

2) obtaining loans from specialized financial and credit institutions.

Depending on the location, a distinction is made between internal and external loans.

For subjects of borrowing relations – loans placed by central and territorial government bodies. At the central government level, government loans do not have a specific target. At the territorial level, borrowing often has a targeted purpose, for example, the construction of a road or a residential area.

By terms: short-term (up to 1 year); medium-term (1–5 years); long-term (over 5 years).

By security: mortgages (secured by specific property) and non-mortgage;

By the nature of the income paid: interest, with a zero coupon (discount, sold at a discount from the face value, and repurchased at the face value), winning.

By the nature of income: with fixed and floating income.

If early repayment is possible: with and without the right of early repayment.

By type of repayment: with a lump sum repayment and with repayment in installments.

Domestic loans are usually issued in national currency and the lenders for them are predominantly residents of a given state (individuals and legal entities).

To the extent possible, domestic debt obligations are divided into:

1. market, existing in the form of issue-grade securities (freely sold and purchased). In 2005, the Ministry of Finance of the Russian Federation issued federal loan bonds (OFZ) and government savings bonds (GSO).

2. non-market, issued to finance budget debt (bills of the Ministry of Finance of the Russian Federation, debt to the Central Bank of the Russian Federation, etc.)

Subjects of the Russian Federation have the right to borrow funds from other budgets, from commercial banks or issue loans for investment purposes. Mainly medium-term and short-term subfederal securities are issued.

External loans of the Russian Federation can be divided into 4 categories.

1) Debt to commercial banks in Western countries, which provide loans under government guarantees or subject to insurance of loans from government agencies (the principal amount of the Russian Federation's debt ($50 billion)). This debt falls on the Paris Club, which consists of official representatives of the main creditor countries (about 2 dozen states).

2) Loans provided by commercial banks of Western countries independently, without government guarantees. This debt is regulated by the London Club, which unites creditor bankers on an informal basis (more than 600 commercial banks).

3) Debt to various commercial structures for corporate loans related to the supply of goods and payment for services.

4) Debts to international monetary and financial organizations.

External loans can be used in three forms:

1) financing investment projects and economic development (financial placement is the most effective way);

2) financing current budget expenditures and the state budget deficit, including servicing external debt (budgetary use is the most ineffective way of using external debt. Used in the Russian Federation);

3) mixed budgetary and financial placement.

The main method of regulating the external debt of the Russian Federation is its restructuring on terms acceptable to Russia - that is, drawing up a new debt repayment schedule in comparison with the original schemes (replacing short and expensive debts with long and cheap ones).

The Russian Federation places external bond issues in the form of Russian Eurobonds on international capital markets. The issue of Eurobonds allows you to transfer internal debt into external debt. The cost of servicing external debt is less (in the worst case, 25% per annum) than internal debt.

Subjects of the Russian Federation do not have the right to resort to external credits and borrowings. Before the 1998 crisis, Moscow, St. Petersburg and the Nizhny Novgorod region managed to place external foreign currency loans.

As a result of borrowing activities, public debt is formed.

Public debt is the totality of government budget deficits over a certain period of time. This is the economic essence of public debt.

From a legal point of view, the state debt of the Russian Federation is the debt obligations of the Russian Federation to individuals, legal entities, foreign states, international organizations and other subjects of international law. Internal debt is the obligations of government bodies to residents, external - to non-residents.

According to the level of management, public debt is divided into public debt of the Russian Federation, public debt of a constituent entity of the Russian Federation and municipal public debt. Russia is not responsible for the debt obligations of the constituent entities of the Russian Federation and municipalities. All assessments of the situation with government borrowing include the budget debt of the federal government, although when talking about public debt, one should include the debt of regional and municipal authorities.

Government debt arises from borrowing money and issuing debt. Debt repayment can be carried out through cash payments, exchange of a debt obligation for tax exemptions, refusal to pay, cancellation of debt, or acceptance of debt by another body. When managing public debt, agreements can be reached between creditors and the borrower on: 1) replacing debt obligations with other obligations; 2) consolidation of several previously placed debt obligations (unification); 3) changes in loan profitability; 4) increasing the term of the loan (consolidation) The state may defer or cancel the repayment of the loan.

4.3. State as a guarantor

State guarantee- a method of ensuring civil obligations, by virtue of which the guarantor (the Russian Federation or its subject) gives a written obligation to be responsible for the debtor’s fulfillment of obligations to third parties. The guarantor under a state guarantee bears subsidiary liability with the debtor for the obligation guaranteed by him.

The state as a guarantor:

A) guarantees the restoration and safety of deposits in Sberbank made before June 20, 1991 and state insurance organizations under personal insurance contracts in the period before January 1, 1992;

B) guarantees citizens an income and a fixed set of basic consumer goods and services within the framework of the system of state minimum social standards;

C) the Russian Federation can act as a guarantor for the obligations of constituent entities of the Russian Federation and municipalities;

D) state guarantees can be provided to legal entities on a competitive basis for highly effective investment projects.

4.4. State as a creditor

Borrowers of federal budget funds may include:

1) budgetary institutions. They do not have the right to receive loans from credit organizations and other individuals and legal entities, with the exception of loans from the budget and state extra-budgetary funds;

2) state and municipal unitary enterprises;

3) other legal entities;

4) executive authorities of lower budgets.

Ways to ensure the repayment of a budget loan are bank guarantees, sureties, and property pledge. The return of budget funds provided to legal entities, as well as fees for their use, are equal to payments to the budget.

Budget loan – budget funds provided to legal entities or other budgets on a repayable and reimbursable basis. A budget loan is budget funds provided to another budget on a repayable, gratuitous or reimbursable basis for a period of no more than 6 months within a financial year.

Subjects of the Russian Federation also provide budget loans.

External loans – provided to foreign states, legal entities, and international organizations. The debts of third countries in Russia are $140 billion. The Russian Federation offers them the conversion of debt into property on the territory of these countries, the use of foreign labor, and export supplies. Major debtors: Cuba, Mongolia, Vietnam, India, Iraq, Afghanistan, Ethiopia, Algeria, Angola.

Educational and methodological manual for self-preparation for practical classes (in questions and answers).
Taganrog: Southern Federal University, 2007

4. CREDIT SYSTEM

4.1. ESSENCE, FORMS AND FUNCTIONS OF CREDIT

What is a government loan?

State loan- this is a set of economic relations between the state represented by its authorities and management, on the one hand, and individuals and legal entities, on the other, in which the state acts as a borrower, lender and guarantor.

If the state assumes responsibility for repaying loans or fulfilling other obligations undertaken by individuals and legal entities, then it is guarantor.

Acting as a borrower, the state influences the size of centralized monetary funds. Credit relationships in which the state acts as a guarantor do not necessarily lead to such a change. If the debtor fulfills its obligations in a timely manner and in full, the guarantor does not bear any additional costs. But most often, government guarantees apply to unreliable borrowers and lead to the expenditure of centralized funds.

State credit is one of the types of credit, characterized by urgency, payment and repayment. Funds are raised by the state for a specific period. After a certain period of time, the borrowed amount must be repaid with interest.

State credit differs from such basic forms of credit as banking and commercial by collateral. When providing a bank or commercial loan, some kind of valuables are usually used as collateral. When borrowing funds by the state, the collateral is the entire solvency of the state, all property owned by it, the property of a given territorial unit or any of its income.

There are at least three reasons why the economic activity of the state is impossible without state credit:

1) the presence of a cash gap in budget execution, i.e., a difference in the time of receipt of income to the budget and the making of expenses;

2) state budget deficit;

3) strengthening the social orientation of the economy, increasing costs for environmental protection, which requires an increase in government spending.