Public credit is a specific area of ​​public finance. It has neither a separate financial fund nor a special governing body, and at the same time it characterizes a special form of financial relations of the state.

State loan in its economic essence, it is a set of economic relations between the state represented by administrative authorities, on the one hand, and individuals and legal entities, on the other, in which the state is a borrower, lender and guarantor.

The main classical form of state-credit relations, when the state acts borrower of funds . At the same time, with the help of government loans, free financial resources of legal entities and individuals are attracted, which are used to meet government needs.

Being creditor , the state, at the expense of budget funds, provides loans on a paid and repayable basis to legal entities and individuals.

In cases where the state assumes responsibility for repaying loans or fulfilling other obligations assumed by individuals or legal entities, it is guarantor .

There are differences between bank and government loans.

Bank loan used for lending to enterprises in order to ensure the uninterrupted process of expanded reproduction and increase its efficiency. A distinctive feature of bank lending is the productive use of borrowed capital (or for the purpose of developing social infrastructure). The use of credit resources as capital creates conditions for repaying the loan and paying interest on it by increasing the cost of additional capital.

State loan represents the receipt of budget funds at the disposal of public authorities, in fact it is their additional financial resources. These funds are usually used to cover the budget deficit. The source of repayment of government loans and interest are budget funds.

Objective need to use government credit to meet the needs of society is due to the constant contradiction between the magnitude of these needs and the state’s ability to satisfy them at the expense of budgetary funds.

The feasibility of using government credit for the formation of additional financial resources of the state and covering the budget deficit is determined by significantly less negative consequences for the state finances and monetary circulation of the country in comparison with foreign exchange methods (for example, issuing money) of balancing government revenues and expenses.

Purpose of state loan is that it is a means for the state to mobilize additional financial resources. The mobilized funds can be used both to pay off the budget deficit and to finance socio-economic programs.

State credit performs three functions:

· regulating – manifests itself in the fact that, by entering into credit relations, the state influences the state of money circulation, the level of interest rates in the money and capital market, production and employment.

· distribution – ensures the formation of centralized monetary funds of the state or their use on the principles of urgency, payment and repayment.

· control – consists of monitoring the attraction of borrowed funds and their repayment, the intended use of funds, repayment deadlines, and timely payment of interest.

State credit can be internal and external.

Internal government credit appears in the following forms:

· government loans,

· transformation of part of the population's deposits into government loans,

· borrowing funds from the national credit fund,

· treasury loans,

· guaranteed loans.

Government loans as the main form of internal government credit, they are characterized by the fact that temporarily free funds of the population, enterprises and organizations are attracted to finance public needs through the issue and sale of bonds, treasury obligations and other types of government securities.

Bond– the most common type of government securities. It symbolizes a government debt obligation and gives its owner the right to receive back the amount of debt and interest after a certain period. By selling a bond, the state undertakes to repay the amount of the debt within a certain period of time with interest or to pay interest during the entire period of use of the borrowed funds, and after this period to return the amount of the debt.

Treasury bills (bills) have the nature of a debt obligation aimed only at covering the budget deficit. Payment of income is carried out in the form of interest. Treasury bonds, as a rule, are issued for short-term loans (sometimes medium-term - treasury notes).

Closely related to government loans is the second form of government credit, the functioning of which is mediated by a system of savings institutions. Unlike the first form of state credit, when individuals and legal entities buy securities using their own temporarily available funds, savings institutions provide credit to the state using borrowed funds.

Converting part of the population's deposits into government loans, intended for the needs of the state, is carried out through the purchase of special securities (for example, treasury savings certificates) or market securities (bonds, treasury obligations), as well as through the issuance of non-bonded loans. In our country, this is now achieved through the acquisition of government securities by Oschadbank.

State use of loan funds as a form of government credit, it is characterized by the fact that state credit institutions directly (without limiting these operations to the purchase of government securities) transfer part of the credit resources to cover government expenses. This form of government credit is not economically justified and predetermines inflationary processes.

Treasury loans as a form of state credit, they express the relationship of providing financial assistance to enterprises and organizations by government authorities and management at the expense of budgetary funds on the terms of urgency, payment and repayment. In our country, the form of state credit is not yet used very actively.

Treasury loans are issued on preferential terms in terms of terms and interest rates. They are possible in the event of financial difficulties of enterprises and business organizations due to their special position in the market or the deterioration of the economic situation in the country. Treasury loans do not have a commercial purpose, but are a means of maintaining economic structures vital to the national economy.

By guaranteed for The government actually bears financial responsibility only in the event of insolvency of the payer.

International government loan represents a set of relations in which the state acts in the global financial market as a borrower or lender. Like domestic loans, they are issued on the terms of repayment, urgency and payment.

International government credit acts in the following ways: forms:

· government external loans;

· loans from international financial bodies;

· intergovernmental loans;

· bank loans from the state.

The amount of external loans received and interest on them is included in the country's public debt.

External loans are provided at the expense of budget funds or special government funds.

Recipients of funds can be central governments, republican and local authorities.

Lenders can be financial institutions and other legal entities of foreign states, individuals, international financial institutions, foreign states.

Classification of government loans carried out according to the following criteria:

1. According to legal registration:

· loans issued by subscription obligations or agreements (non-bonding);

· loans secured by the issue of securities;

2. Depending on the location:

· internal;

· external;

3. By right of issue:

· state;

· local loans;

4. By the nature of the use of securities:

· market – issued by freely circulating securities;

· non-market loans – do not allow securities to enter the market, i.e. their owners cannot resell them;

5. Depending on the installed software:

· wealthy;

· unsecured;

6. By maturity:

· short-term;

· medium-term;

· long-term;

7. By the nature of income payment:

· interest;

· winning;

· discount.

8. By the nature of repayment:

· one-time payment;

· payment in installments;

9. Depending on the state’s obligations to repay the loan:

· with the right of early repayment;

· without the right of early repayment.

Sources of repayment of government loans can be:

· income from investing borrowed funds in highly efficient projects;

· additional tax revenues;

· savings from cost reduction;

· emission of money;

· funds raised in new loans (debt refinancing).

The existence of public credit leads to the emergence of public debt and the need for a system for managing it.

State debt is the amount of debt the state owes to internal and external creditors.

The total amount of government debt consists of all issued and outstanding government debt obligations (both domestic and foreign), interest on them, including issued loan guarantees provided to local governments and individuals.

Current debt- this is the amount of debt that must be repaid in the current year, as well as the amount of interest on all issued loans that must be paid in the current period.

Capital debt- This is the total amount of debt and interest that must be paid on loans.

Structurally, public debt is divided into internal and external.

Domestic debt is a set of obligations of the state to residents.

External debt– the totality of the state’s obligations to non-residents.

Public debt servicing– this is the repayment of loans, payment of interest on them, clarification and change of repayment terms of issued loans. Loan repayment is carried out at the expense of budgetary funds or at the expense of funds received through debt refinancing.

Debt servicing expenses include: interest payments, winnings, expenses for the production, forwarding and sale of securities, holding draws, redemption draws, etc.

External debt servicing carried out in the process of implementing the state budget. Payment is made by the State Treasury.

External debt service ratio is determined by dividing all payments on external debt by the state's foreign exchange receipts. The normal service level is 25%.

Sources of repayment of external debt are:

· budget;

· gold reserves;

· funds received from the privatization of state property;

· new loans.

Servicing government internal debt carried out by the Ministry of Finance through the banking system by conducting operations on the placement of government securities, their redemption and payment of income.

The maximum amount of state internal and external debt is established by the Verkhovna Rada of Ukraine simultaneously with the approval of the State budget for the next year.

The efficiency of using government loans largely depends on the debt management system.

Public debt management- this is a set of measures carried out by the state through its authorized bodies to determine the conditions for raising funds, their placement and repayment, and ensuring the solvency of the state. Target Debt management policies – obtaining the greatest effect from debt financing and leveling macroeconomic difficulties and balance of payments problems in the future.

Stages of the Debt Management Process:

1. Raising funds - choosing forms and types of borrowing.

2. Allocation of funds - use of funds to increase production capacity.

3. Repayment of debt and payment of interest.

In order to ensure solvency, states use various methods of adjusting borrowing policies.

Debt refinancing- This is the repayment of principal and interest using funds received from the placement of new loans.

Debt restructuring is a deferment of payment of part of the debt under certain conditions.

Public debt management methods:

· conversion – provides for a change in the profitability of the loan;

· consolidation – provides for an increase in the duration of the issued loan;

· unification – involves combining several loans into one, bonds of several previously issued loans are exchanged for bonds of a new loan;

· deferment of loan repayment;

· debt cancellation.

State loan refers to the complex of economic relationships between the state on behalf of its authorities and management, on the one hand, as well as individuals and legal entities, on the other hand, in which the state is the borrower, lender and guarantor.

The state will be the guarantor when it assumes responsibility for repaying loans or fulfilling other obligations (which were assumed by individuals and legal entities).

As a borrower, the state has influence on the volume of centralized monetary funds. But not all credit relationships in which the state is a guarantor will change in this direction. If the debtor pays the required amounts on time and in full, then the guarantor (the state) does not need to spend funds in excess of what was lent. However, in most cases, government guarantees apply to unreliable borrowers and cause additional expenses from centralized funds.

State, bank and commercial loans have similarities, but they also have differences - they have different collateral. A bank or commercial loan often uses various values ​​as collateral. When government money is borrowed, the security for it will be the entire solvency of the state, all the property that is on its balance sheet.

There are several reasons for mandatory presence state loan in any state:

1) the presence of a cash gap in budget execution, that is, a difference in the time of receipt of revenues into the budget and expenditures;

2) state budget deficit;

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

Goals and objectives of state credit.

No matter what form the government loan takes, it is often voluntary. The exception was the situation when, after the Second World War, a mandatory subscription to government bonds was introduced in the USSR, which were intended to raise funds for the restoration of the national economy.

State loan used by the state to solve such problems:

• finding financial resources to finance government spending, linking income and expenses;
• regulation of macro- and microeconomic processes;
• influence on the social and monetary policy of the country.

Public credit and public debt.

State loan very related to the concept government debt. An increase in the number of loans on behalf of the state causes an increase in public debt. The public debt of the Russian Federation is the country's debt obligations to legal entities. and individuals, non-residents of the country, international organizations and other subjects of international law. The public debt is secured by all property owned by the state, which constitutes the state treasury.

Debt obligations of the Russian Federation within the category “ state loan"come in the following forms:

• Credit agreements and agreements that were concluded with credit institutions, foreign states, international organizations on behalf of the Russian Federation in favor of these creditors;
• Government debt securities that are issued on behalf of the Russian Federation;
• Agreements on the provision of state guarantees of the Russian Federation, guarantee agreements of the Russian Federation to secure obligations by third parties;
• Agreements and treaties concluded on behalf of the Russian Federation on the prolongation and restructuring of state debt obligations of past years;
• Re-registration of debt obligations of third parties into debt obligations of the Russian Federation, based on current legislation.

The maturity of debt obligations of the Russian Federation and its constituent entities should not exceed 30 years.

Introduction. 3

State credit represents the relationship of secondary distribution of the value of the gross social product and part of the national wealth. Only part of the income and funds generated at the stage of primary distribution falls into the sphere of state credit relations. Usually they are temporarily free funds of the population, enterprises and organizations.

The formation of additional financial resources of the state at the expense of free funds is one side of state credit relations. The second side is financial ties determined by the repayment and payment of funds additionally mobilized by the state. Payment of income to creditors is ensured from budget revenues. At the same time, the circle of the taxpayer does not coincide with the circle of holders of government securities.

The feasibility of using government credit to generate additional financial resources of the state and cover the budget deficit is determined by significantly less negative consequences for public finances and the country’s monetary circulation compared to monetary methods (for example, issuing money) of balancing government revenues and expenses. This is achieved by shifting demand from individuals and legal entities to government agencies without increasing aggregate demand and the amount of money in circulation.

The possibility of the existence of a state loan follows from the peculiarities of the formation and time of use of income received by individuals and legal entities. The population constantly generates temporarily free funds: primarily due to uneven receipt of income, payment of fees, bonuses, vacation pay, receipt of inheritance, etc.

Similar trends occur in the movement of funds of enterprises and organizations. Large temporary fluctuations in receipt of revenue from the sale of products and services may occur due to the length of the production cycle or the seasonality of production. Temporarily free financial resources for legal entities may arise due to the uneven implementation of large capital investments in production and the social sphere. The reserve funds of enterprises may be temporarily free. As the efficiency of social production increases, the possibilities of attracting funds from enterprises and organizations to the sphere of state credit also increase.

Relations under the line of state credit cannot be confused with a bank loan. The loan fund, which serves as the material basis for bank lending, is used to provide borrowed funds to enterprises and institutions in order to ensure the continuity and increase the efficiency of the process of expanded reproduction. Individuals can also receive loans. With a state loan, additional financial resources are formed in the hands of the political superstructure. Therefore, state credit expresses part of the financial relations of society. This circumstance does not allow free handling of the country's loan fund and the unhindered attraction of part of banking resources to finance government expenses.

State credit can be external And internal. The main share of government spending is carried out in national currency, so priority development is given to interior government loan. But the wide international division of labor, the exchange of technologies and scientific and technical ideas, the provision of financial assistance to foreign countries - all this determines the intensive development international state loan. The system of state credit relations also includes conditional state loan, when the state acts as a guarantor for loans provided to foreign borrowers, local authorities, government associations, etc.

The functioning of public credit leads to the formation of public debt. Capital government debt represents the entire amount of a government's issued and outstanding debt obligations, including accrued interest that must be paid on those obligations. Current public debt consists of expenses for the payment of income to creditors on all debt obligations of the state and for the repayment of obligations for which payment has already come due.

The state, making extensive use of its capabilities to attract additional financial resources in order to timely finance budget expenditures, is gradually accumulating debt to both domestic and foreign creditors. This leads to an increase in public debt - internal And external.

Public debt is a characteristic of the effectiveness of all completed government credit operations. Its absolute value, dynamics and rate of change reflect the state of the country’s economy and finances, the efficiency of the functioning of government structures. The state of public debt is significantly influenced by annual operations in the field of public credit: the receipt of new loans and the conditions for their provision, on the one hand, and the amount of repayments and interest paid, on the other.

The purpose of a state loan is manifested primarily in the fact that it is a means of mobilizing additional financial resources in the hands of the state. In the event of a state budget deficit, additional mobilized financial resources are used to cover the difference between budget expenditures and revenues. With a positive budget balance, funds mobilized through government loans are directly used to finance economic and social programs. This means that state credit, being a means of increasing the financial capabilities of the state, can be an important factor in accelerating the socio-economic development of the country.

Government credit is a source of increasing cash income for security holders and savings bank depositors. This is achieved through the payment of interest and winnings on government loans and deposits in savings institutions. This fully applies to work collectives. By investing in government securities, labor collectives not only organize the accumulation of funds for making large investments in production and the social sphere, but can also count on a significant increase in the funds invested in loans annually or during the repayment of loan bonds.

But when assessing the financial significance of a state loan, one should not forget that the funds mobilized by the state with its help are anticipated, i.e. taxes taken in advance. The need to pay off public debt requires finding additional resource revenues for the budget, and they can be obtained (except for new loans) only through taxes. In addition, repayment of debt obligations and payment of interest on them divert part of budget revenues from productive use and reduce the possibilities for increasing the production and intellectual potential of society.

It should be borne in mind that the provision on anticipation of budget revenues has limited effect. In a favorable financial situation, the state, with the help of credit relations, mobilizes funds for their productive use or solving certain social problems. In the case of investing in specific production facilities, each borrowed ruble will exist in the form of real production assets and will contribute to the creation of funds to repay the resulting public debt, without diverting tax payments from the population and enterprises for this purpose.

1.2. Forms of state credit in the system of credit relations

In the system of credit relations, state credit appears in the following forms:

1. government loans;

2. conversion of part of the population’s deposits into government loans;

3. borrowing funds from the national loan fund;

4. treasury loans;

5. guaranteed loans.

Government loans are characterized by the fact that temporarily free funds of individuals and legal entities are attracted to finance public needs by issuing government securities: bonds, treasury bills, etc. A bond is a security that symbolizes a government debt obligation and gives the right to its owner after a certain deadline to get back the amount of debt and interest. By selling a bond, the state undertakes to repay the amount of debt within a certain period of time with interest or pay creditors income during the entire period of use of the borrowed funds, and upon expiration of the term, return the amount of the debt.

The state sets the nominal value (nominal price) of bonds. It is indicated on the bond and expresses the amount of money provided by the bondholder to the state for temporary use. It is this amount that is paid to the owner of the bond at the time of its maturity and interest is accrued on it. However, the real yield of bonds for their holders may be higher or lower than the stated nominal interest. This is due to the fact that bonds are sold at a market price that deviates from their face value. This deviation is called course difference and depends on a number of factors. These include, in particular, the amount of income paid on the loan, the level of loan interest, the time of purchase of the bond, the degree of saturation of the stock market with government securities, the attractiveness of the conditions for issuing private securities, the state of the economic situation, the degree of public confidence in the government.

The free quotation of government bonds on the stock exchange is a mechanism for taking into account all factors that affect the exchange price of interest-bearing securities. The functioning of a full-fledged stock market, which is impossible without a high degree of liquidity of income securities, helps to overcome the negative psychological factor. The latter consists in the wary attitude of lenders towards government lending operations; it was generated by a departure from the requirements of the laws of stock market development and the state’s violation of its obligations; forced distribution of loans, sharp restrictions on the liquidity of government securities, freezing of government debt, etc.

The elimination of the well-known distrust of lenders in the credit operations of the state is facilitated by the variety of conditions for issuing loans according to terms. If the state focuses only on long-term credit operations, then this makes it difficult to involve free short-term and medium-term funds in the purchase of bonds, and also forces a potential lender to think about the advisability of investing and long-term savings.

Another type of government loans are treasury bonds, which differ from bonds in the purpose of issue, the form of payment of income and freedom of circulation. Funds from the sale of bonds are directed to the budget, extra-budgetary funds or for special purposes. Funds from the sale of treasury obligations are used only to replenish the budget. Bond income may be paid in the form of interest, winnings, or no payment at all. Treasury bills pay interest in the form of interest. Bonds can be either freely tradable or with a limited circulation. Treasury bonds have only a limited circle of circulation and sale only among the population.

Government domestic loans are classified according to several criteria. According to the right of issue, they are divided into issued:

a) the central government;

b) republican governments;

c) local authorities.

The practice of issuing government loans by the central government became widespread. The debt of republican and local authorities is, as a rule, insignificant.

Based on the holders of securities, loans can be divided into those sold only among the population (for example, the State Internal Winning Loan of 1982), among legal entities (the State Internal 5% Loan of 1990) and universal, i.e., intended for placement among individuals and legal entities.

Depending on the form of income payment, the following are distinguished:

a) interest-bearing loans;

b) winning loans;

c) interest-winning loans;

d) win-win loans;

e) interest-free (targeted) loans.

Owners of debt obligations of an interest-bearing loan receive a solid income annually by paying coupons or once upon repayment of the loan by accruing interest on the face value of the securities (without annual payments). Examples of interest-bearing debt are government treasury bonds and the 1990 5% bond. With winning loans, bondholders receive all income in the form of winnings when the bonds are repaid. Income is paid not on all bonds, but only on those that were included in winning draws. An example of a winning loan is the 1982 Government Loan. The conditions for issuing interest-winning loans provide for the payment of part of the income through coupons, and the other part in the form of winnings. Win-win loan issues ensure that the winnings fall on each bond over the life of the loan. Currently, interest-winning and no-loss loans are not issued in our country. Interest-free (targeted) loans do not provide for the payment of income to bondholders, but guarantee the receipt of the corresponding goods, the demand for which is not yet fully satisfied. An example of an interest-free government credit operation is the 1990 government target loan. Local authorities can provide targeted loans for road construction, environmental protection work, and financing of other activities in which the population of the administrative-territorial unit is interested.

Based on repayment terms, loans are divided into:

a) short-term loans - repayment period up to 1 year;

b) medium-term loans - repayment period up to 5 years;

In addition, two important new elements of credit appear here: loan currency And payment currency. When receiving a loan, both the lender and the borrower are interested in the loan currency being characterized by a high degree of stability. Therefore, as a rule, loans are provided in dollars, German marks, Japanese yen, Swiss francs and other freely convertible currencies. Loan repayment is not necessarily carried out in the same currency in which the loan was issued. For example, Russia receives loans in different currencies, but the payment currency, as a rule, remains the dollar.

The loan amount is determined either in the commercial contract or in the prospectus when issuing international bonds. The term of an international loan depends on a number of factors, which include: the purpose and scope of the loan; similar practice in providing previous loans for the same purposes; traditions; national legislation; interstate agreements.

In modern conditions of increased competition in international trade, each state strives to create conditions for increasing the competitiveness of domestic exporters. For these purposes, the state in many countries with developed market economies carries out operations to refinance transactions of industrial companies and banks involved in export lending. This happens in various forms. In some countries, special state and semi-state (mixed with the participation of private capital) banking institutions for foreign trade lending have been created, in others - banking consortia, which are faced with the task of creating favorable conditions for refinancing foreign credit operations of commercial banks in the central bank.

A typical example of a national government institution for export promotion is the Export-Import Bank of the United States (Exim Bank), which was founded back in 1934 to provide direct loans to foreign buyers of American goods. Today it primarily provides guarantees to American industrial and banking companies against commercial and political risk.

Similar institutions operate in a number of other countries, in particular, in Japan and France. Established in 1951, the Export-Import Bank of Japan, unlike the corresponding one in the United States, has broader lending capabilities: it lends to both export and import transactions, as well as foreign investment transactions of Japanese companies. Moreover, it lends primarily not to foreign importers, but to Japanese exporters.

In France, the state credit mechanism to support exports began to function back in 1946. In some countries - Belgium, Holland, Germany, Sweden - the state participates in lending for export operations through foreign trade banks created with consortia of commercial banks.

In addition to participating in lending to exporters, the state in countries with market economies pursues an active policy of insuring foreign trade loans against changes in exchange rates and political instability, which significantly increase the risk of making an international loan. For these purposes, in the UK, France, Germany, the USA and other countries, an entire system of insurance and guarantees for export operations has been developed.

An increasing role in the field of international credit is played by international and regional financial and credit institutions: the International Bank for Reconstruction and Development (World Bank), the Inter-American Development Bank, the Asian and African Development Banks, the European Development Bank. Chief among them is the World Bank with its two branches - the International Finance Corporation (IFC) and the International Development Association (IDA). All these development banks generate a significant part of their liquid resources in capital markets: both international and national. Some part is deducted from the budgets of member countries of the banks. Active operations of development banks are implemented as loans to various, primarily developing countries. A feature of IBRD lending is the so-called project approach to providing loans. This means that bank loans are given to a particular country not for vague development programs, but for specific investment projects that have a feasibility study and are recognized as appropriate by IBRD experts. At the same time, the World Bank provides loans of two types: loans A and loans B. Loans A are carried out entirely at the expense of the bank’s resources. B loans are provided by the bank as a participant in an international banking consortium created jointly with the largest commercial banks. The share of IBRD funds in the total resources of the consortium can fluctuate between 10-25%.

IBRD branches play a slightly different role in international lending. With its loans, the IFC is designed to promote the efficiency of private investment in borrowing countries. It is one of the few international organizations that can invest in shares, as well as lending without government guarantees. This allows the IFC to provide the loans needed for a given project, while at the same time ensuring that each local firm can borrow capital from other sources.

Another branch of the IBRD, IDA, provides the softest loans only to economically underdeveloped countries for a period of decades at interest rates significantly below market rates. Funds for providing loans are entirely generated from contributions from donor countries.

In modern conditions, Russia, like any modern state, acts as both an international creditor and an international debtor. This is the result of a multi-year long process of borrowing at the level of national markets of developed countries with market economies and, at the same time, lending to a number of countries. But the peculiarity of these processes was that borrowing was purely commercial in nature, and lending was primarily military-political. As a result, to date, in relation to developed countries with market economies, Russia is a net debtor. In relation to developing and some post-socialist countries, Russia acts as a net creditor.

This situation, at first glance, is easily solvable - to collect the debts of debtor countries and at the expense of this to pay off with countries with developed market economies and European banks - in reality it turns out to be a complex and intractable knot of contradictions. The debts of Russia's developing and post-socialist countries are estimated to reach $145 billion. But it is difficult to return them, since loans for the sale of weapons and purely political purposes have never before been able to create an equivalent for repaying the actual amount of the debt and paying interest. For example, of the $14.2 billion that was supposed to be paid to Russia to repay the debt, $2.1 billion, or 15%, was paid in 1993.

Russia's external public debt was inherited from the USSR. All CIS countries, except Ukraine, entrusted Russia with certain conditions for servicing their external public debt. The total total debt of all CIS countries to foreign creditors (excluding Ukraine) in 1993 amounted to about 70 billion dollars (the external debt of the USSR in 1987 was 40 billion dollars). It is extremely difficult to pay off this public debt in a relatively short time, since Russia's foreign exchange earnings from its exports have sharply decreased and the state's share of this earnings has decreased even more. In practice, Russia can annually pay its creditors no more than $2.5 billion per year, which is approximately equal to the amount of annual interest on external debt. In 1993, the Paris Club (which unites all public creditors at the international level) and the London Club (which unites private creditors, mainly transnational banks) delayed the payment of the principal part of the Russian debt for several years. But you will have to give it away. In the near future, repayment of previous debt will occur through its refinancing. This means that the amount of debt that must be repaid in a given year will have to take out a new loan equal to it and pay off old debts at its expense. As a result, due to this method of debt repayment, Russia’s external public debt will most likely remain at the 1993 level. At the same time, a number of Russian commercial banks, bypassing government legislation, placed about $20 billion in foreign bank accounts by the end of 1993, and the so-called capital flight from Russia does not stop and is unlikely to stop until the monetary crisis is overcome. system of the country, inflation is suppressed and bank interest rates will not turn from negative to positive.

The experience of other countries that experienced a similar state of their external finances less than a decade ago (for example, Mexico, etc.) indicates that without solving the problem of streamlining the country’s monetary system, repayment of external public debt, even if extended over many years, becomes very problematic.

Chapter 2. Analysis of public credit and its role in the formation of budgetary resources of the Russian Federation

2.1. Analysis of the dynamics of public internal debt of the Russian Federation

TO The key task of the Russian government in the medium term today is to ensure the progressive development of the national economy. The growth rate of national production and its sustainability are currently determined by both external factors (price levels on the external market for energy resources and the development of the world economy) and internal factors - primarily the state of the financial sector (banking system and financial markets), its ability to stimulate steady development domestic economy and counteract external influences (shocks).

N The current development of the Russian domestic debt market is taking place under specific conditions (different from those that took place during the transition period, or in 1992–2002). First of all, the national economy is experiencing an external “shock” caused by the persistence of high oil prices and associated with significant inflows of foreign currency into the country. On the one hand, the Russian monetary authorities do not feel the need for external and internal borrowing, on the other hand, economic agents feel a shortage of financial instruments circulating on the market. As a result, federal bond yields at the beginning of this stage are in sharply negative territory.

T Current economic realities, determined by the presence of a significant amount of free resources, along with the continuing shortage of financial instruments, determine high demand for government bonds. The dominant position in the government debt market now belongs to Sberbank of the Russian Federation (about 70% of the market volume). The remaining market share is occupied by Russian commercial banks, which are experiencing a shortage of instruments and liquidity, while the share of external investors is insignificant. Potentially, the Pension Fund of Russia (PFR) could become a very large investor here, but its participation in this market is administratively limited: the demand for federal bonds is at such a high level that the yield on them has decreased to the level of -5 - -10% per annum in real terms. calculus.

IN If oil prices remain relatively high in the medium term, key positions in the domestic debt market will be occupied by state-controlled structures - Sberbank of the Russian Federation and the Pension Fund of the Russian Federation. On the contrary, a sharp drop in oil prices will most likely lead to problems with the execution of the state budget - in this case, the structure of market participants may change somewhat - the share of Russian private investors and external financial institutions will increase. However, such changes will be insignificant, since the financial resources accumulated by the Pension Fund of the Russian Federation and Sberbank of the Russian Federation are so large that they make it possible to maintain the structure of the domestic debt market unchanged for two to three years, while ensuring its expansion.

IN“internal” funds – savings of the population and enterprises – will be used as the main market resources. The funds of the population accumulated in the Savings Bank of the Russian Federation and the Pension Fund of the Russian Federation represent sufficient potential for further expansion of the domestic debt market. In addition, at the moment, bank savings of enterprises and the population are not used: as of 04/01/2003, only bank balances in correspondent accounts with the Central Bank amounted to 137.5 billion rubles. (or 4.4 billion dollars - funds with zero profitability), and deposits of commercial banks in the Central Bank - 61.4 billion rubles. (or about 2 billion dollars), taking into account the fact that most of the funds were placed on such deposits in the first half of 2003 for one day at a rate of 1% per annum.

AND The excess of free financial resources along with the persistent shortage of financial instruments led to a sharp decline in the profitability of the latter. Thus, interest rates on bank deposits in the Central Bank in the first half of 2003 amounted to 1–3% per annum, and the yield of GKOs/OFZs decreased to 5–7% per annum in nominal terms (with inflation expected in 2003 at 12–15% ).

IN high oil prices on the world market and the associated increase in foreign exchange reserves of the Russian Federation, simultaneously with a shortage of circulating financial instruments, predetermine the retention of excess funds in the economy, the direct consequences of which are an imbalance between supply and demand in the federal bond market, a sharp decrease in the yield of government securities (significantly lower rates of current and expected inflation) and the emergence of a number of threats/problems from the point of view of maintaining financial stability. In particular, maintaining a negative (or sharply negative) real yield on federal bonds means an increasing potential threat for the emergence of a banking and currency crisis, a wide spread in the values ​​of interest rates operating in the economy, acceleration of inflation and, ultimately, the formation of conditions that could destabilize the national economy. financial system. Let us highlight the most significant factors influencing this situation:

The continued trend of strengthening of the real ruble exchange rate in the context of a decrease in the yield of federal bonds encourages the emergence of an imbalance in the bank's foreign exchange position - an increase in liabilities in foreign currency and their placement in Russian rubles in anticipation of receiving additional profit due to the strengthening of the real exchange rate of the ruble against foreign currency (primarily against the US dollar and the euro). In the event of a change in the trend in exchange rates that precedes an increase in federal bond yields, national commercial banks will face significant losses and a liquidity crisis, which will also trigger a banking crisis.

Negative yields on federal bonds contribute to increasing the spread of interest rates in the economy. An excess of available financial resources, on the one hand, leads to a sharp decrease in interest rates on the most liquid and reliable financial instruments (primarily from the point of view of ensuring liquidity in the banking system), but on the other hand, leaves interest rates on other instruments at least unchanged . As a result, the gap in the level of interest rates on individual financial instruments is widening, which leads to both a decrease (or decrease in growth) of bank liabilities and a slowdown in the growth of bank assets associated with investing in the real sector of the economy.

is limited, then the state supplements the system of gratuitous transfer of resources (collection of taxes, etc.) by attracting funds on a repayable basis - in the form state loan: internal and external (Fig. 1).

Rice. 1. System of sources of public finance

The modern state is at the same time debtor And creditor.

Being a powerful economic agent with enormous funds, the state simultaneously borrows and lends to other states and borrowers in foreign countries (legal entities and individuals), that is, it acts as a borrower and a lender. In real life, the state is most often a borrower. In addition, the state acts as guarantee repayment of loans in the activities of which the state is interested.

State loan- is a means of state regulation of economic development, it is important for regulating, determining the level and. and state credit is a consequence. If there is a shortage of its own revenues to cover the state budget deficit, the state has two sources of replenishing it: additional issuance of money into circulation, which generates, and the attraction of borrowed resources from the given state and foreign countries (Fig. 2).

The need for government credit is objectively inherent in the possibility of an imbalance between state income and expenditure (state budget deficit), which is covered by borrowing.

Inflation and government debt- two ways of repayment .

Rice. 2. Financial methods of paying off the state budget deficit

A small government deficit is a built-in incentive.

The natural question is: is it necessary to finance the state budget deficit at all? Indeed, in small amounts, the budget deficit stimulates economic activity and the growth of the national economy (Keynesian economic model). But a budget deficit is only useful in small, homeopathic doses. In other cases (if there is a persistent tendency towards its growth), it is necessary to regulate it. The release of money into circulation is always inflationary. If it does not correspond to real growth, then government borrowing becomes the main regulator of the state budget deficit.

State internal up tolg arises in the form of government loans from individuals (citizens) and legal entities (enterprises and organizations).

The main regulator of the state budget deficit is government borrowing (domestic and external).

Concept and forms of state credit

State credit as an economic category is a system of monetary relations arising in connection with the state’s involvement on a voluntary basis for the use of temporarily free funds of citizens and business entities. State credit as a legal category is an independent institution of financial law, which is a set of financial and legal norms governing social relations that develop in the process of the state attracting temporarily free funds of legal entities and individuals on the terms of voluntariness, repayment, urgency and compensation in order to cover the budgetary deficit and regulation of monetary circulation.

The source of repayment of government loans and interest payments on them are budget funds, where these expenses are allocated annually in a separate line. However, in the face of an increasing budget deficit, the state may resort to refinancing public debt, that is, repay old public debt by issuing new loans.

In general, government loans can be classified according to the following criteria:

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

• short-term (up to 1 year);
• medium-term (from 1 year to 5 years);
• long-term nature (from 5 to 30 years).

All debt obligations of the Russian Federation are repaid within the terms determined by the specific terms of the loan, but cannot exceed 30 years (Law of the Russian Federation of November 13, 1992 “On the State Internal Debt of the Russian Federation”);

according to the right of issue they are divided into:

• issued by the central government;
• issued by the governments of national-state and administrative-territorial entities and local governments, if so provided by law;

Based on the entities that hold securities, loans can be divided into those that can be sold:

• only among the population;
• only among legal entities;
• both among legal entities and among the population;

Based on the form of income payment, loans can be divided into:

• interest-winning, where the owners of debt obligations of an interest-bearing loan receive a solid income annually by paying coupons or once when repaying the loan by crediting interest to the accrued face value of securities without annual payments;
• winning, where the recipient receives income in the form of winnings at the time of redemption of the bonds, income is paid only on those bonds that were included in the winning draws. In addition, there are win-win loans. However, they are not currently produced in the Russian Federation;
• interest-free (targeted) loans provide for the payment of income to bondholders or guarantee the receipt of the corresponding product, the demand for which is not satisfied at the time the loan is issued.

according to placement methods they are divided into:

• voluntary;
• posted by subscription;
• forced.

Now only voluntary loans are used. Forced loans are used only in totalitarian states. Subscription loans are close to forced loans, so they are also not used.

The form of loans can be bonded or non-bonded. Bond loans involve the issue of securities. Non-bonded loans are formalized by signing agreements, contracts, as well as by making entries in debt books and issuing special obligations.

All conditions of intergovernmental loans are fixed in special agreements, which stipulate the level of interest, the currency of provision and repayment of the loan and other conditions.

External bond loans on foreign money markets are placed, as a rule, by banking consortia on behalf of the borrowing state. They charge a commission for this service.

The banking system is responsible for the sale of securities. Moreover, the Central Bank of the Russian Federation carries out the primary sale of government securities, and commercial banks carry out the secondary sale. Thus, the formation and development of the securities market takes place, playing a large role in the accumulation of non-inflationary funds by the state.

The Central Bank and its local institutions carry out operations to place debt obligations of the Russian Federation, repay them and pay out income in the form of interest on them or in another form, i.e. the Central Bank of the Russian Federation is engaged in servicing the state internal debt of Russia.

Types of government loans and borrowings

To fulfill its functions and ensure sustainability, the state attracts and also issues loans. This activity of the state is combined into a broad concept - state credit.

State loan- relationships in which the Russian Federation is either a lender, a borrower, or a guarantor. Government loans can be provided to Russian and individuals, foreign states, foreign legal entities and individuals, and international organizations.

Basically, the state does not provide, but receives loans. Government loan- transfer of funds into the ownership of the Russian Federation, which the Russian Federation undertakes to return with payment of interest on the loan amount. The loan allows you to solve the problem of temporary shortage of budget revenues.

Budget loan- a form of financing budget expenditures, which provides for the provision of funds to legal entities on a repayable and reimbursable basis. A budget loan must be distinguished from a budget loan.

Budget loan- budget funds provided to another budget on a repayable or reimbursable basis for a period of no more than six months within a financial year.

The loan is issued.

The terms of the loan agreement must be:

• repayment arising under the loan agreement is mandatory within the agreed period;
• loan security;
• interest rate.

Through credit relations, the redistribution of credit resources is ensured.

The result of government loans is the appearance. It can be internal and external.

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

Central banks purchase government securities on the secondary market and, taking them into account in their assets, reflect in their liabilities the issue of money, or more precisely, the growth of the monetary base. This is how the monetization of public internal debt occurs. This means that it is the public debt that becomes the collateral for the issued money.

Why is public debt monetized? Because it is impossible to monetize private debt. But such proposals are being made. In particular, F. Hayek put forward the theory of private money. It proposes abolishing the state's monopoly on issuing money and allowing private firms to issue their own money. It is curious that this theory was supported by M. Friedman, although it completely contradicts the quantity theory. It is easy to imagine the consequences of a private issue if we recall the experience of MMM and other similar “issuers”.

Interest on government loans acts as a macroeconomic regulator of the economy. If the state attracts too large a volume of 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 activity.

Government borrowing can only be justified if it is used effectively. For example, if a railway or highway is built with funds raised by the state, which can quickly pay for itself. But if loans are used ineffectively, the burden of repayment falls on taxpayers, not only living ones, but also subsequent generations.

Therefore, accumulating government debt is a moral problem. By increasing debt, one generation transfers its problems to another and lives off it.

Government credit is different from bank and commercial credit. When receiving a bank or commercial loan, specific assets are used as collateral: securities, goods in stock, machines and equipment. The collateral for government loans is state property.

Therefore, when announcing state bankruptcy (default) State property located abroad may be subject to seizure, but with the exception of embassy property.

The buildings of trade missions, as well as the bank accounts of all companies in which the state has a stake, may be subject to seizure.

State credit provided to legal entities and individuals has a beneficial effect on the level of production and employment. Many countries use government guarantees for loans provided by exporters to expand sales of their products.

Structure and forms of internal government credit. Classification of government securities

State internal credit consists of government loans from:

Internal government loan presented as follows forms:

• government loans by issue;
• central bank loans;
• loans from commercial banks and enterprises.

Government domestic loans classified by next signs:

• by right of issue or according to the subjects of borrowing relations, loans are divided into posted by central and local authoritiesauthorities;
• based on security holders to: sold only among the population, among legal entities and universal;
• depending on the nature or form of the income paid for: winning, interest, zero coupon;
• by maturity loans are divided into: short-term (repayment period up to 1 year), medium-term (from 1 to 5 years) and long-term (over 5 years);
• depending on the provision government obligations are divided into mortgaged and non-mortgaged;
• depending on the income determination method government bonds are divided into bonds with fixed and variable income;
• depending on duty the borrower to comply with the loan repayment terms government bonds can be obligations with the right of long-term repayment and without the right of long-term repayment;
• depending on the appeals On the open market, government debt securities are divided into marketable and non-marketable.

Government debt obligations or securities form the country’s national debt and constitute a special segment of the stock market - government securities market. Essential peculiarity government securities - a combination in them of all the properties of stock market instruments with the simultaneous characteristics inherent in a state regulatory macroeconomic instrument. Government debt securities are represented mainly by bonds. In general, on the stock market the ratio of traded shares to bonds is 1:0.9 (Fig. 3).

Rice. 3. Structure of the stock market by types of securities

Government securities are divided into groups depending on the following factors (criteria):

• issuer: central government; municipalities; state-owned enterprises; government financial corporations;
• urgency: short-term treasury bills; medium term notes; long-term bonds);
• holder: bearer And nominal;
• release method: documentary (cash form); undocumented (non-cash form);
• purpose of the issue: covering the state budget deficit of the appropriate level; financing of investment projects; financing of social programs;
• forms of income payment: winning, interest, discount;

placement method: holding auctions; open sale; individual accommodation.

Mortgage bonds are secured by certain income or property

Marketable government bonds are traded on the stock exchange

Securities issued by the government to cover the state budget deficit and finance budget expenditures are called government securities

Bond- this is an issue-grade security that secures the right of its holder to receive from the issuer of the bond within the period specified in it the nominal value and the interest fixed in it

Banks, loans, deposits

For a country, a state loan is one of the ways to attract funds for its needs. So government loans are part of the entire system of public finance. Almost every country has a need to attract additional financial resources with limited amounts of tax revenue and other income. So, in addition to gratuitous receipts of resources (such as taxes), the state also attracts funds on a repayable basis, using the form of state credit: both external and internal.

The state in these economic relations can act as a borrower, guarantor, or lender.

If the state assumes responsibility for repaying the loan or fulfilling other obligations, it becomes the guarantor. And if the debtor fulfills its obligations on time and in full, then the guarantor will not have to bear additional costs. However, government guarantees are often needed by unreliable borrowers, which means that centralized monetary funds have to bear the costs.

A state loan, like any other, is distinguished by payment, urgency and repayment. However, a state loan differs from a bank or commercial loan in the type of collateral. Bank or commercial loans are secured by some kind of valuables. When the state borrows money, the security is its entire solvency, all its property or income.

There are three reasons why it is difficult for the state to do without state credit in its economic activities:

Cash gap of the budget, that is, the time difference between the time of receipt of funds into the budget and their expenditure;

The presence of a budget deficit also leads to the need for government credit;

Increasing orientation of the economy towards the social sphere, increasing investment in environmental protection, that is, processes requiring increased government spending.

Typically, government loans are voluntary. Although, of course, there are exceptions. For example, after World War II, the population was required to subscribe to government bonds, the purpose of which was to raise funds intended to restore the national economy after the war. Forced loans, as a rule, take place in states with a totalitarian regime.

How is government credit used?

The state uses it in search of resources to finance the country's expenses, to regulate processes in macroeconomics and microeconomics, in order to influence social and monetary policy.

Two types of government credit - external and internal - have their own characteristics. The concept of external credit is closely related to the external debt of the state. But internal means the debt of the state in relation to persons within the country. Even a situation where the state did not have time to transfer salaries or pensions to social workers or vulnerable groups of the population is a state loan. State credit also includes government borrowing funds from commercial banks and issuing government debt obligations - securities with a certain maturity.

Previously, we considered situations in which the state acts as a borrower, but it can also be a lender. For example, the state can lend to local authorities, organizations, enterprises, and can also issue them loans on preferential terms. In addition, the state can provide external loans.