Public debt management - (English national debt management) -

1) a set of state measures aimed at repaying the debt; 2) a mechanism for the formation and implementation of one of the directions of the financial policy of the state associated with its activities in external and internal financial markets as a borrower or guarantor.
State debt- this is the entire amount of issued, but not repaid government loans with interest accrued on them on a certain date or for a certain period.

The public debt is divided:

• 1. Internal and external.
• 2. Main and current.

The state internal debt of the Russian Federation means the debt obligation of the Government of the Russian Federation, expressed in the currency of the country, to legal and individuals. The forms of debt obligations are loans received by the Government of the Russian Federation, state loans carried out by issuing securities on its behalf, other debt obligations guaranteed by the Government of the Russian Federation.

Public external debt is a foreign currency debt on outstanding external loans and unpaid interest on them.

Principal debt is the entire amount of the debt of the state, for which the due date for payment has not come and which cannot be presented for payment during this period.

The current state debt is the debt of the state on obligations for which the payment period has come.

World experience shows that public debt should not exceed half of the country's GDP. Significant amounts of public debt reflect the crisis state of the economy Russian Federation.

Measures that contribute to the repayment of public debt include:

• - payments to creditors;
• - repayment of external and internal loans;
• - provision of guarantees;
• - changes in the terms of issued loans;
• - determination of the conditions for the issuance and placement of new government debt obligations, etc.

The implementation of measures depends on the adoption of informed decisions in the process of public debt management, which is based on an analysis of the volume and structure of debt, an objective assessment of its current state. In this case, absolute and relative indicators are used.
Absolute indicators reflect the volume of state internal and external debt in monetary terms, the amount of expenses associated with its repayment and servicing.
The main relative indicators that significantly affect the adoption of administrative decisions and the choice of methods for managing public debt include: the percentage of the amount of debt and GDP; the share of expenditures on the repayment and servicing of public debt in the total amount of budget expenditures. To assess the state external debt, indicators of the percentage ratio of the amount of external debt and the volume of exports in monetary terms, the share of expenses on repayment and servicing of the state external debt in export earnings, characterizing the level of the debt burden for the national economy, are also used.
Public debt management is a continuous process that includes 3 stages: attraction of financial resources through the placement of securities, repayment and servicing of debt obligations.

At the first stage, the maximum size of government borrowings and guarantees for the next budget year is determined, tools are selected for attracting resources and increasing the efficiency of their use.

At the second stage, resources are attracted in external or internal financial markets by issuing and placing government securities, obtaining a loan or providing state guarantees, and then these funds are used to finance current budget spending or investment projects.

The third stage is to find sources of financial resources to pay off and service the public debt, reduce overall costs, and timely fulfill debt obligations.

Government debt is repaid by budget revenues, gold and foreign exchange reserves of the country, cash received from the sale of state property and new borrowings.
Methods can be divided into administrative and financial.
Administrative methods are based on the quick and accurate implementation of individual orders of state authorities and administration; they do not provide an assessment of the economic efficiency and results of public debt management actions.
Financial methods consist in choosing methods and forms of ensuring the repayment of public debt through the analysis of financial indicators and are aimed at maximizing the effect of attracted loans with minimal costs associated with their repayment and servicing.
The most optimal combination of administrative and financial methods is determined by internal and external economic and political factors. In conditions debt crisis when the state is experiencing difficulties in fulfilling its previously undertaken obligations to repay and service public debt, are used : refinancing, restructuring, loan conversion, loan consolidation, cancellation and write-off of public debt.

Under refinancing refers to the repayment of old government debt by issuing new loans . For example, our country used refinancing to pay off the debt on the state 3% domestic winning loan of 1966. After the expiration of this loan, the bonds were exchanged within one year for bonds of a new loan - the domestic winning loan of 1982 without paying the exchange difference. Refinancing was also used in the issuance of government treasury bills. As they were implemented, additional funds to repay loans in 1955-1956, placed among the population by subscription. Refinancing is actively used in the payment of interest and repayments on the external part of the public debt. However, an indispensable condition for the provision of new loans is the good reputation of the debtor country in the circles of the international financial market, its economic and political stability.

Under conversion usually refers to the change in the yield of loans. In order to reduce the cost of public debt management, the state most often reduces the amount of interest paid on loans. However, an increase in the yield of government securities for creditors is not ruled out. Such an operation was carried out, for example, in 1990, when the yield on bonds of a 3% winning loan was increased to 9%, and treasury bonds - from 5 to 10%.

The state is interested in obtaining loans for long periods. Extending the maturity of loans already issued can be achieved through consolidation public debt. Thus, consolidation is understood as a change in the terms of loans associated with their terms. For example, in 1938, freely tradable loans were consolidated with the exchange of old bonds for new ones, the term of which was doubled (up to 20 years). However, the reverse operation is also possible - reducing the validity period of government securities. Thus, in 1990, the term of treasury obligations was reduced from 16 to 8 years. It is possible to combine consolidation with conversion. Such an operation was carried out, for example, in 1936, when the bonds of seven state loans, placed among the population by subscription with payment by installments, were exchanged for bonds of a new loan with a lower yield and with a doubling (up to 20 years) of the term of the securities .

Unification government loans are usually carried out along with consolidation, but can be carried out outside of it. Unification of loans is the combination of several loans into one, when bonds of previously issued loans are exchanged for bonds of a new loan. Such a measure provides for a reduction in the number of types of securities circulating simultaneously, which simplifies work and reduces government spending on the state credit system. The unification of loans was carried out in 1930: simultaneously with the issuance of the Five-Year-in-Four-Year loan, bonds of industrialization loans and the strengthening of the peasant economy were exchanged for its bonds.

In exceptional cases, the government may regression bond exchange, i.e. when several previously issued bonds are equated to one new bond. For example, such an exchange was carried out in the post-war period in order to withdraw wartime loan bonds from circulation. The exchange of bonds according to a regressive ratio relieves the state of the need to pay interest and repayments in full money on bonds sold by the state for the depreciated currency of the war years. The regressive exchange of state loan bonds was carried out in 1947. Eleven loan bonds previously placed by subscription were exchanged for bonds of a new loan at a ratio of 3:1. The bonds of the freely traded loan were exchanged for new ones at a ratio of 5:1. Holders of loan bonds received certain advantages compared to persons who had cash savings, since the exchange of old money for new was carried out at a ratio of 10:1. The deferment of the repayment of a loan or all previously issued loans is carried out in conditions where the further active development of operations to issue new loans is not financially effective for the state. This happens at a time when the government has already issued too many loans and the terms of their issue were not sufficiently favorable for the state. In such cases, most of the proceeds from the sale of bonds of new loans are used to pay interest and repayments on previously issued loans. To break this vicious cycle, the government announces a deferral of loan repayments, which differs from consolidation in that the deferral not only delays repayment dates, but also stops the payment of income. During the consolidation of loans, bondholders continue to receive their income on them.

In 1957, in our country, it was decided to stop issuing loans distributed among the population by subscription, and to defer the repayment of previously issued loans for 20 years. The actual reason for this event was the impasse in the field of state credit, caused by the unpopularity among the population of the so-called mass loans placed by subscription. The government realized that this practice should be abandoned, but could not count on obtaining new loans to refinance the public debt. So I had to go to defer the repayment of loans. It was envisaged to start paying off the debt on deferred loans from 1977 and to carry it out in equal installments over 20 years. In fact, the repayment was started 3 years earlier, i.е. in 1974 and completed in 1990.

Conversion, consolidation, unification of government loans and the exchange of government bonds are usually carried out only in relation to domestic loans. With regard to postponing the repayment of obligations, this measure is also possible in relation to external debt. Postponement of repayment of external loans, as a rule, is carried out in agreement with creditors. At the same time, the delay in repayment of the debt may not entail the suspension of the payment of interest on it.

Under cancellation of the public debt is understood as a measure, as a result of which the state completely renounces obligations on issued loans (internal, external or for the entire public debt). Cancellation of government securities can be carried out for two reasons. First, the cancellation of the public debt is announced in the event of the financial insolvency of the state, i.e. his bankruptcy. Secondly, debt cancellation may be the result of new political forces coming to power, which, for certain reasons, refuse to recognize the financial obligations of the previous authorities. Thus, in January 1918, the Government of the RSFSR canceled all pre-revolutionary internal and external loans. The Soviet government did not recognize the financial obligations of the tsarist administration and the Provisional Government, which used borrowed funds mainly to prepare for war and conduct military operations, as well as to suppress the revolutionary movement (at present, the central government has recognized part of the external pre-revolutionary debt). Important is the area of ​​public debt management, associated with the definition of conditions and the issuance of new loans. When determining the conditions for issuing loans, the main of which are the level of profitability of securities for creditors, the duration of loans, the method of paying income, the state must be guided not only by the interests of achieving maximum financial efficiency of loans, but also take into account the real situation in the financial market. The success of new loans can only be ensured if the situation in the economy, the state of money circulation, the level of profitability and terms of existing loans, the benefits provided to creditors and many other factors are correctly taken into account.

Public debt management directly affects economic growth, inflation, loan interest, employment, volume of investments in the country's economy as a whole and in the real sector of the economy.

Public debt management, in a broad sense, refers to the formation of one of the directions of the state's financial policy related to its activities as a borrower, creditor and guarantor. Public debt management, as one of the areas of financial policy, is in the hands of the authorities and government. It is they who determine the total amount of the budget deficit and, consequently, the amount of loans needed to finance it, the main directions and goals of influencing money turnover, credit, production, employment and the feasibility of implementing nationwide programs to support small businesses, certain regions of the country, etc.

Chronic shortage of state and local budgets and high public debt are typical at the present stage for most industrialized countries. As a result of the government's credit expansion, other borrowers are squeezed out of the financial market, and high interest rates on loans remain. Huge public debt service costs are eating up an increasing share of tax revenues. Therefore, the reduction of budget deficits and public debt is regarded by the governments of industrialized countries as one of the most urgent tasks.

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

• 1) minimizing the cost of debt for the borrower;
• 2) prevention of overflow of the market with borrowed obligations of the state and sharp fluctuations in their exchange rate;
• 3) efficient use of mobilized funds and control over the targeted use of allocated loans;
• 4) ensuring timely repayment of loans;
• 5) maximum solution of the tasks defined by the financial policy

Public credit management is carried out by management bodies, financial and credit institutions. The operational management of public credit under the leadership of the Government of the Russian Federation is usually carried out by the Ministry of Finance of the Russian Federation or the Treasury together with the Central Bank.

External debt management is carried out in three forms:

• - financial placement - financing of investment projects and economic development; this is the most effective method placement of external debt;
• - budgetary use of financing current budget expenditures and the state budget deficit, including servicing the external debt;
• - mixed budgetary and financial placement.

In the Russian Federation, the second method of placement is used - this is the most inefficient way to use external debt.

In the field of external debt management, the priorities for the Russian Federation are:

• - optimization of the debt structure (in terms of urgency - it is necessary to attract medium and long-term loans; by types of debt - to expand the range of financial instruments used, in terms of profitability - to expand the issue of securities that provide relative savings for the budget, take into account the ratio of ruble and foreign exchange yield);
• - use of projects financed by tied loans;
• - conversion of external debt - exchange of debt for national currency(swap into national assets); redemption of debt at a discount; debt-for-export swap; exchange of debt for property; exchange of debt for debt;
• - management of external financial assets- an inventory of Russian property abroad, to try to return Russia's debts and Russian gold located abroad.

Issues of public debt management occupy one of the central places in economic policy Russia. This is due to the rapid increase in the volume of debt and the cost of its repayment and servicing.

The depth of these problems became apparent in August 1998. One of the main problems in the field of managing the state debt of the Russian Federation was the debt of the former USSR, in which, at the time of its adoption by Russia, short- and medium-term loans prevailed, and their main amount was due to be repaid in 1992-1995.

A feature of state borrowings of the USSR and later Russia was their use mainly to cover the federal budget deficit and debt servicing. Therefore, one of the main factors in the aggravation of the debt situation was the nature of the use of internal and external loans. According to the Accounts Chamber of the Russian Federation, the practice of using loans provided for the structural restructuring of the economy, the system social protection, the coal industry, for use for other purposes - covering the budget deficit, repaying and servicing the external debt of the Russian Federation. As a result, the main method of public debt management has become permanent debt refinancing, which has led to an avalanche-like increase in public debt.

Debt management should be based on the reduction of debt and the cost of its repayment and servicing. However, in the management of the public debt of the Russian Federation, there are a number of features related to the nature of its relations with creditors, current servicing and debt settlement, with a limited choice of debt settlement methods. Therefore, let us dwell on the consideration of various methods of public debt management.

Public debt management involves both current debt servicing (payment of interest on it) and repayment of the principal amount of the debt. This can be called proper debt service. If proper debt service is not performed within the stipulated time, then the borrower tends to settle the debt (improper service).

Current debt servicing involves the timely payment of interest on debt obligations: coupon payments and payment of interest on loans.

When due, the solvent borrower has the opportunity to repay the debt in the normal way, i.e. according to the conditions agreed at the time of borrowing. In the vast majority of cases, monetary repayment is expected. However, with the actual monetary repayment of the debt, two options are possible:

Repayment from proceeds from newly borrowed funds, i.e. we are talking about debt refinancing;

Repayment at the expense of the budget with a decrease in the amount of debt, i.e. debt sterilization.

In the first case, the amount of debt remains unchanged, in the second case, the level of public debt is reduced.

The term refinancing is used to refer to two situations:

First, in connection with normal (proper) debt service;

Secondly, with inadequate service.

In the first case, refinancing is the repayment of debt at the expense of financial resources from the issuance of other debt instruments of a new tranche of the same type as the previous debt obligations.

In the second case, we are talking about improper debt servicing, when the possibility of repaying debt obligations is absent or raises serious doubts. In such a situation, the borrower, by agreement with creditors, issues new debt instruments with new investment characteristics to repay tradable debt obligations. In this situation, the term "conversion" is also often used, which implies that a debt with certain parameters is replaced by a debt with fundamentally different parameters. For example, with an increase in the term of the loan, the security increases, as well as the status of securities, or the debt can be converted into another type of financial asset.

Based on the foregoing, it is the first situation that should be understood as refinancing, and the second should be attributed to cases of debt settlement.

In Russian economic practice, debt sterilization is commonly understood as a reduction in the size of public debt due to normal repayment. In world practice, this term has a slightly different meaning. The term "sterilization" in the Western sense indicates the fact that the reduction of any macroeconomic parameter

carried out by increasing the size of the money supply. Debt sterilization, therefore, means reducing the public debt by increasing the money supply in circulation with possible negative consequences (inflation growth, etc.). Therefore, the term sterilization is not applicable to normal repayment from a theoretical point of view.

In world practice, there is a broader term denoting the normal repayment of debt without attracting new borrowed resources, which can be literally translated as debt repayment.

The choice between normal repayment through debt refinancing and normal repayment in the form of sterilization depends on a number of factors. In particular, it is more efficient to sterilize debt when there is a stable budget surplus. Debt sterilization can have negative consequences:

Rising inflation due to an increase in the money supply in circulation;

Under certain conditions, price increases;

Reducing the level of real incomes of the population by reducing the funding of social programs.

Despite the noted unfavorable trends, all public borrowers seek to reduce their public debt under favorable conditions. At the same time, the state is developing a set of measures to prevent these negative consequences. These measures include changing industrial and tax policies, currency regulation, etc. Programs to prevent the negative consequences of debt sterilization are developed based on domestic macroeconomic trends, as well as taking into account the state and prospects for the development of the global financial market. Based on an assessment of the current situation, the optimal time points for debt sterilization are determined.

If there are difficulties in servicing the debt, a situation with improper debt service may arise.

Improper debt servicing means delay in paying interest or principal on a debt. If the debt is not properly serviced, a default may occur, which contains a number of negative consequences. Default refers to the borrower's refusal to fulfill its obligations. Technologically, default is declared not by the borrower, but by its creditors. However, in fact, the borrower himself declares his default, refusing to fulfill his obligations.

The default may be total or partial. Full default means that the borrower defaults on all debt instruments. Partial default is a condition in which a borrower defaults on one or more instruments.

There is also a technical default, in which there is a failure to fulfill any debt obligation for 10 banking days. After this period, the term "technical" will be eliminated if the debtor does not take steps to settle the debt.

If it is impossible to properly service the debt, the borrower has two options for getting out of this situation:

Refuse to fulfill its obligations unilaterally;

Develop mutually acceptable debt settlement options with creditors.

In the first option, two situations are possible: the announcement of self-release from obligations, or the cancellation of the debt, or the recognition of one's insolvency. Cancellation of the debt leads to the isolation of the debtor state. Recognition of one's insolvency may be accompanied by temporary or permanent failure to fulfill obligations.

In the event of difficulties with debt servicing, the borrower has only one effective way out of this situation - debt settlement together with creditors.

One of the debtor's first problems is the division of obligations in terms of their status. Different debt instruments are characterized by varying degrees of rigidity of obligations in terms of their service. to debt obligations the highest degree rigidity include loans from the IMF and the World Bank, as well as Eurobonds. They are subject to priority execution in comparison with other obligations and are not subject to settlement. Violation of obligations under this group of instruments leads to a cross-default. In other words, it makes no sense to fulfill obligations under any other instruments if the obligations under the above-mentioned ones are not fulfilled.

Thus, there is a two-tier system for servicing debt obligations: all debts are divided into priority serviceable and subject to settlement.

In world practice, there are three main (basic) methods of debt settlement: restructuring, conversion and write-off. IN

In recent years, these methods in their pure form, as a rule, have not been

apply. Every debt settlement agreement is built on a combination of two or three methods. As for Russia, the most acceptable methods for it are debt restructuring and conversion. Debt cancellation is not possible for Russia because it does not fall under the definition of the poorest country. This method of debt settlement is applicable only to this category of countries.

Debt restructuring is the termination of debt obligations constituting state or municipal debt, based on an agreement, with the replacement of these debt obligations with other debt obligations providing for other conditions for servicing and repaying obligations.

The restructuring of public debt involves such a change in the parameters of debt that would significantly increase the ability of the borrower to fulfill its obligations both by reducing the severity of this debt and by increasing the rigidity of obligations. The restructuring also aims to minimize creditor losses and expand opportunities economic development debtor.

The purpose of the restructuring is to increase the likelihood that the borrower will meet its debt obligations. This is achieved in the following ways:

A change in the status of the borrower's obligations may lead to more severe consequences in case of default;

Strengthening the material security of obligations, including through the creation of fundamentally new and revision of existing guarantees and guarantees;

The setting by the creditor of conditions, the fulfillment of which will lead to the expansion of sources of debt servicing, since such conditions usually take the form of economic reform programs.

The effectiveness of debt restructuring turned out to be very high, as a result of which the use of this form of debt settlement is used not only in cases of difficulties in debt servicing, but also in order to optimize public debt, in a favorable situation on the world market.

Debt conversion broadly refers to any exchange of old debt for a new asset, including the exchange of old debt for new debt and the replacement of debt with property. In a narrow sense, debt conversion refers to the exchange of debt for property (swap).

Since the 80s To settle the debt, the "swap" transaction is widely used - the exchange of debt for various assets. When it is converted into the national currency, a preferential rate is set for the lender, provided that the borrowing country redeems its obligations at a higher price than they are traded on the market, that is, with a smaller discount. Each participant in the transaction wins. The state saves the investor with the help of a preferential exchange rate and, in doing so, reduces the nominal amount of the debt and interest. The lender is restructuring its investment portfolio. Such schemes require firm agreements. So that inflation does not devalue the debt converted into national currency, the debtor's program is carefully coordinated. In turn, the creditor agrees to restrictions on the repatriation of capital, refusing possible arbitrage transactions using the preferential exchange rate provided to him. In Russia, the operation "swap" - the exchange of debt for cash was carried out to settle non-guaranteed debt under certain trade contracts.

A "swap" deal in the form of a debt-for-export swap is attractive to Russia if the target is not energy carriers and raw materials, but engineering, science-intensive and high-tech products. In addition to paying off the state debt, this will increase the competitiveness of the domestic industry, increase employment and production load, tax revenues to the budget, and help to gain a foothold in traditional markets and conquer new ones.

"Swap" in the form of an exchange of debt for shares (property) is used in international practice in two versions:

1. The creditor sells public debt at a discount in the debtor's currency and buys blocks of securities of the borrowing country with the proceeds;

2. the debt is directly exchanged for shares of enterprises owned by the state (in whole or in part).

Debt conversion is most often used in the settlement of external debts, and foreign investors become owners of the shares of enterprises. However, this method contains a number of disadvantages: the state loses a significant amount of property; in the event of an unfavorable economic situation, investors may leave the country.

With regard to Russia, conversion operations are of particular interest. Our country faces the problem of reducing public debt. In addition, the actual problem remains the activation investment activity in the country. However, in the Russian context, there are some limitations to the application of this method of debt settlement.

First of all, it should be noted the insufficiently high value of shares that can be exchanged for public debt. This is due to the completion of large-scale privatization, as well as the insufficient level of development stock market and its low capitalization. In addition, there is no reliable legal support for property relations that could potentially become the subject of debt swap transactions, for example, land plots and other real estate. And, finally, the idea of ​​exchanging public debt for property is not popular in the mass consciousness. To use this form of debt settlement effectively in Russia, these limitations must be overcome.

The need to concentrate in a single center the work on managing foreign debts and state assets is becoming more and more obvious, as is done in a number of European countries.

More on the topic of Public Debt Management Methods:

1. 3.2 GOVERNMENT SECURITIES AS A TOOL FOR MANAGING PUBLIC DEBT
2. 2.8. State and municipal credit. Public debt management
3. Management of public credit and public debt.
4. 62. Public debt. Methods of public debt management.
5. 66. Methods of managing public domestic debt
6. State and municipal credit. Management of the public debt of the Russian Federation

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Management is inherent in all spheres of human activity, including financial. Management is understood as a conscious and purposeful impact on the object of management with the help of a set of techniques and methods to achieve a certain result. Management is based on knowledge of the objective patterns of development of nature and society. At the same time, the state, represented by relevant structures, as well as legislative acts, has a great influence on management.

An important area of ​​management activity is public debt management.

The government debt of the Russian Federation is managed by the Government of the Russian Federation or the Ministry of Finance of the Russian Federation authorized by it.

The management of the public debt of a constituent entity of the Russian Federation is carried out by the highest executive body of state power of a constituent entity of the Russian Federation or the financial body of a constituent entity of the Russian Federation in accordance with the law of the constituent entity of the Russian Federation.

Municipal debt management is carried out by the executive and administrative body of the municipality (local administration) in accordance with the charter of the municipality.

There are five stages of development Russian market domestic debt:

Stage 1 - associated with the transition of the Russian monetary authorities from direct financing of the federal budget deficit by the Central Bank of the Russian Federation to the creation of a market for federal bonds.

Stage 2 - due to the emergence of resource constraints for the further development of the domestic debt market and its opening to external investors.

Stage 3 - is determined by the systemic financial crisis.

Stage 4 - characterized by a gradual overcoming of the crisis.

Stage 5 - presents modern development domestic debt market 25. С.2.

In the process of managing the public debt of the Russian Federation, the following general tasks are solved:

keeping the amount of domestic public debt at a level that ensures the preservation of the economic security of the country, the fulfillment by the authorities of their obligations without causing significant damage to the financing of socio-economic development programs;

minimizing the cost of debt by extending the term of borrowing and reducing the yield on government securities, moving to other markets and shifting attention to other groups of investors;

maintaining the stability and predictability of the public debt market;

achievement of effective and targeted use of funds borrowed by the state and borrowings guaranteed by it;

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

coordination of actions of federal bodies, bodies of subjects of the Russian Federation and local self-government in the debt market of the country.

Public debt management is strategic and operational. Perspective issues of the development of public debt are within the competence of the Federal Assembly, the President of the Russian Federation and the Government of the Russian Federation, legislative (representative) and executive authorities of the constituent entities of the Russian Federation. Executive bodies prepare draft federal and regional laws (the Federal Assembly and the President of the Russian Federation, representative bodies and heads of administrations of constituent entities of the Russian Federation also have a legislative initiative), the Federal Assembly of the Russian Federation and the legislative bodies of constituent entities of the Russian Federation adopt them, and the President of the Russian Federation and heads of regional administrations reject or sign them.

In particular, every year in the law on the federal budget, the Federal Assembly and the President of the Russian Federation establish the maximum volumes of the state internal and external debts; sources of domestic financing of the budget deficit, including income from the issuance of government securities.

Operational management of the public debt is carried out by the Government of the Russian Federation and its special body - the Ministry of Finance of the Russian Federation, as well as central bank of the Russian Federation and Vnesheconombank as agents of the Ministry of Finance of the Russian Federation. These bodies determine the general conditions for the issuance of individual loans, the procedure for issuing and circulating debt obligations, the time for issuing the next loan and the conditions for its operation, organize the primary placement and secondary market for government securities, organize and carry out the payment of income and the repayment of debt obligations, organize and carry out the issuance of government securities. (budgetary) loans and state guarantees, carry out control actions and other measures for the operational management of public debt 40. С.416-418.

It is necessary to distinguish between the stages of management. It is possible to single out at least the following five enlarged stages, at each of which specific tasks are solved.

At the first stage, the process of substantiating the maximum volumes of the state internal debt, the maximum volumes of the state internal borrowings, the maximum volumes of the provision of state guarantees is underway, as well as the programs of the state internal borrowings are being formed.

At the second stage of government debt management, a program for issuing government securities is formed, and specific parameters of forthcoming borrowings are determined in terms of maturity, level of probable profitability, income payment procedure, restrictions on owners, placement procedure and other conditions that make each borrowing original and attractive to resident investors and non-residents.

At the third stage, the placement of bonds and the regulation of quotations for government debt obligations in the secondary market for government debt are carried out. The impact on government bond quotes makes it possible to regulate the budgetary efficiency of ongoing borrowings and the amount of current (internal and external) debt.

The fourth stage - anti-crisis management - is associated with the implementation of measures, the need for which is determined by the presence of problem debts or crisis debt situations. If the government is unable to service and repay its debts, then it enters into negotiations with creditors to revise the schedule of payments and the maturity of debts. As a result of negotiations, the parties may come to an agreement on deferred payments, debt restructuring, partial or complete debt cancellation, early redemption of obligations, novation, and the like.

Fifth stage - execution of original or adjusted payment schedules for servicing and repayment of state internal debts 40. P.417-418.

Public debt management is based on the following principles:

unconditionality - ensuring the accurate and timely fulfillment of the state's obligations to investors and creditors without imposing additional conditions;

unity of accounting - accounting in the process of public debt management of all types of securities issued federal authorities authorities, authorities of subjects of the federation and local governments;

the unity of the debt policy - ensuring a unified approach in the policy of public debt management on the part of the federal center in relation to the subjects of the federation and municipalities;

consistency - ensuring the maximum possible harmonization of the interests of creditors and the borrowing state;

risk reduction implementation of all necessary actions to reduce both the risks of the creditor and the risks of the investor;

optimality - the creation of such a structure of government loans so that the fulfillment of obligations on them is associated with minimal risk, and also has the least negative impact on the country's economy;

publicity - the provision of reliable, timely and complete information about the parameters of loans to all interested users.

In conditions of impossibility for the state for any reason to ensure the repayment of loans and interest payments on them, limited methods of its management can be used: cancellation of the state debt, write-off of debt obligations, restructuring, refinancing, consolidation, deferment of repayment of loans, innovation, unification, conversion, securitization, redemption.

Cancellation of public debt is the refusal of the state from all obligations on previously issued loans. There are two main reasons for debt cancellation: the coming to power of new political forces and the financial insolvency of the state. The use of this method is associated with a number of negative consequences for the debtor country, among which the main ones are distinguished: loss of confidence in the debtor country; limiting opportunities for further borrowing in international financial markets; probability of volume reduction foreign trade; growing instability of the domestic market, the outflow of financial capital from the country.

The cancellation of debt obligations is understood as their termination and, accordingly, a decrease in the volume of public debt, if there are grounds specified by law. The application of this method is typical for countries with low income and at the same time high debt.

Compared to debt cancellation, the effects of write-off on the debtor country are considered to be more favorable, as access to new financial resources is maintained. If neither cancellation nor cancellation of the debt can be considered as the best option, the parties resort to restructuring.

Restructuring is the revision of the debt service payment schedule, the creation of a new and more acceptable debt repayment schedule by extending grace period interest payments and an extension of the principal repayment period. Restructuring can help restore the state's ability to service debts by deferring payments, and, accordingly, reducing the amount of payments and freeing up financial resources.

Debt refinancing - attraction by the state of the debtor of new loans to pay off the old debt (and interest on it) on existing loans. Often, additional financial resources are provided by the same creditors for whose debt servicing the loans are intended. This process is similar to a spiral, accompanied by an endless build-up of debt and payments on it. At the same time, the opportunities for economic development are shrinking. Most of the use of this method is motivated by political reasons. There are three ways to refinance public debt:

1. replacement of obligations (with the consent of their holders) with expired maturity dates for new obligations, equivalent in amount to the sums to be repaid;

2. early replacement of some obligations for others with longer maturities;

3. placement (sale) of new bonds and redemption of expired bonds at the expense of proceeds.

The state is interested in obtaining loans for long periods. An increase in the duration of loans already issued can be achieved through the consolidation of public debt. Thus, consolidation is understood as a change in the terms of loans associated with their terms.

Deferral of repayment of loans is a consolidation while the state refuses to pay income on loans.

Novation - an agreement between the borrower and creditors to replace the obligation under the specified financial loan with another obligation.

Unification of loans is the combination of several loans into one, when bonds of previously issued loans are exchanged for bonds of a new loan. The unification of government loans is usually carried out together with consolidation, but can be carried out without it. Such a measure provides for a reduction in the number of types of securities circulating simultaneously, which simplifies work and reduces government spending on the state credit system.

The conversion of public debt is a change in the initial conditions of government loans and a change in their profitability. The conversion can be forced when the lender is obliged to exchange the bonds of the old loan for bonds of a new one with a reduced interest rate; voluntary, when the creditor has the right to agree to new conditions or to receive the amount given in debt to the state back. The term "conversion" covers the mechanisms that ensure the conversion of debt into new, improving financial position borrower (either now or in the future). The conversion may include the transfer of debt obligations into ownership, shares, investments, commodity deliveries, debt obligations of third countries, resources for development purposes, etc. The use of conversion schemes reduces the total debt and helps attract foreign direct investment.

Securitization is another important market-based debt management tool. When using this method, new debt is issued in the form of bonds that are exchanged for old debt or are subject to sale on the open market. In the process of securitization, there is a reduction in the total volume of external debt, a decrease in interest payments and an increase in the maturity of the debt.

In some cases, when the value of debt in the secondary market is significantly lower than its face value, debtors resort to debt buyback, which reduces the total amount of debt by market conditions.

The above methods of public debt management are based on the negotiation process. They refer to market methods of public debt management and are widely used by developed countries and international financial organizations.

Thus, public debt management should be understood as a set of measures to regulate its volume and structure, determine the conditions and implement new borrowings, regulate the government borrowing market, implement anti-crisis management of problem debts, service and repay debt, determine conditions and provide state guarantees, control over the efficient use of borrowed funds. In order to manage the state internal debt, the Government has the right to apply various methods, incl. cancellation of public debt, write-off of debt obligations, restructuring, refinancing, consolidation, deferment of repayment of loans, novation, unification, conversion, securitization, redemption.

The goal of debt management is to find the optimal balance between the state's needs for additional financial resources and the costs of attracting, servicing and repaying them. In addition, the goal of public debt management is to develop an economically justified relationship between the state's needs for additional financial resources and the costs of attracting them, maintaining the volume of debt at an economically safe level.

Therefore, the public debt management system should be focused on serving strategic investment projects, and the state should act as a coordinator and guarantor of productive investments within the framework of the developed strategy. economic growth.

External public debt management is a set of government measures regulated by the law on the use of debt relations aimed at repaying debt obligations and creating favorable socio-economic conditions for the development of the country, one of the directions of the country's financial and budgetary policy associated with the activities of the state in external financial markets in as an economic entity-borrower and guarantor. It provides for the attraction of financial resources through the placement of securities or other sources, the repayment and servicing of debt obligations.

The most important measures for managing external public debt include setting limits on the volume of public external debt; sources of domestic financing of the budget deficit, including receipts from the issue of government securities; the cost of servicing the external public debt; upper limits of state external guarantees. Excessive growth of external public debt poses a threat to the economic security of the country and the stability of the budget system.

Information about the debt obligations of the Russian Federation is entered into the State Debt Book of the Federation within three days from the moment the obligation arises. The composition, procedure and deadlines for submitting information are established by the Government of the Russian Federation. Information on the volume of its debt obligations (including guarantees) for all state borrowings, the date of borrowing, forms of securing obligations, fulfillment of obligations in full or in part is entered into the state debt book of the subject of the Federation. The state municipal debt book includes information on the amount of debt obligations of municipalities (including guarantees).

The public debt policy and ceiling are determined by the legislature, and the executive branch manages it operationally.

The mechanism for regulating public debt in market conditions is united by the concept of "restructuring", i.e., based on an agreement, the termination of debt obligations that constitute public debt, with their replacement with debt obligations that provide for other terms of service and repayment. Restructuring does not remove the debt problem, but only postpones it to a later date. Consequently, the burden of repayment falls on the next generations, the total amount of payments is further increased due to additional accrued interest.

In the course of the ongoing restructuring of debt obligations, a limited set of methods for its implementation is used: refinancing, conversion, consolidation, unification, cancellation of public debt.

Refinancing is the repayment of old debt (and interest on it) by issuing a new loan, assuming new obligations. There are three ways to refinance public debt:

1. Replacement of obligations (with the consent of their holders) with expired maturity dates for new ones, equivalent in amount to the redeemable ones; early replacement of some obligations for others with longer maturities; placement (sale) of new bonds and redemption of expired bonds at the expense of proceeds.

2. Redemption of the debt. In cases where debtor governments may have significant financial reserves, the borrower can be allowed to buy its own debts on its own, thus reducing the overall amount of public debt. However, world practice has a negative attitude towards early redemption debts. This is due to the fact that it benefits, firstly, the worst borrowers, whose debts are traded at the largest discount, and, secondly, the principle of equality of creditors is violated.

3. Debt securitization - the restructuring of government domestic debt into new market debt money market instruments, including loan capital. Among the main types of securities circulating on international financial markets, there are two groups: foreign bonds issued by non-residents on the domestic market of a foreign state, and Eurobonds - medium and long-term obligations in eurocurrencies issued on the European market among foreign investors.

By the beginning of the 1990s. in international practice, a fairly effective system of restructuring external debt has developed, proposed for the settlement of debt obligations developing countries US Secretary of the Treasury N. Brady, - "Brady's plan." At that time, the securities markets of developing countries were characterized by very low liquidity - 25-40% of the face value. As a result of negotiations between debtors and creditors in 1990-1994. Brady bonds were issued for a total amount of about $ 100 billion. They are government bonds issued in exchange for public debt to commercial banks. In international practice, they use the following types Brady bonds: parity (with reduced interest); discount (with a reduced principal amount of the debt); stepwise (with lower initial rates); debt conversion (new loans), new debt; interest; capitalized.

Administrative methods include conversion, consolidation, unification, deferral of repayment, novation, debt cancellation.

Conversion is a change in the yield of loans in the interests of the debtor by lowering the interest rate, using a different method of repaying the debt in order to reduce the borrower's costs for repaying and servicing the public debt. The most common type of it is an exchange for new debt obligations. Technically, such operations do not lead to a change in the structure of existing liabilities and to the receipt of new loans.

Consolidation is a change in the term of already placed loans in the direction of increase or decrease. The prolongation of loans is aimed at facilitating debt repayment and involves increasing the maturity of issued loans by transferring current liabilities and short term loans in the long term. As a rule, it is compulsory and is carried out by adding interest coupons to bonds of old loans, the validity of which is being extended, or by replacing old loan bonds with new loan bonds. Often consolidation (usually prolongation) is combined with conversion.

Unification of loans is the combination of several loans into one, when bonds of previously issued loans are exchanged for bonds of a new loan. It can be carried out with or without consolidation and conversion.

Deferral of loan repayment consists in the fact that, as in the case of consolidation, the maturity of the loan is unilaterally postponed and, in addition, the payment of income is terminated.

Novation - an agreement between the borrower state and creditors to replace obligations under the same loan agreement.

Cancellation of the public debt - the refusal of the state from all obligations. This is a non-market measure for solving the debt problem of the state. This form of public debt management is used when power changes or when the government declares itself bankrupt.

These forms of public debt management apply to both domestic and foreign debt.

External debt management at the stage of attracting external loans in Russia is carried out by setting the maximum amount of external debt and state guarantees in the law on the budget for the corresponding financial year.

External debt management is carried out in three forms:

Financial placement - financing of investment projects and economic development (this is the most effective way to place external debt);

Budget use - financing of current budget expenditures and the state budget deficit, including external debt service;

Mixed budget and financial placement.

External debt repayment management provides for the use of various sources of its repayment: budgetary funds, gold and foreign exchange reserves, new borrowings, and the conversion of debt into shares of enterprises.

The public debt management system should have two modes of operation:

Management in the normal mode of the reproductive process;

Crisis management in the context of an escalating budget deficit, a decline in production, and a reduction in the possibilities of attracting new borrowings.

The dividing line between these regimes lies in the plane of assessing the key components of government borrowing: the accumulation of public debt, the system of payments, and trends in new borrowing.

Public debt is a complex economic and financial formation, a special financial mechanism that requires the use of a system of methods for its regulation. The key ones include:

Stabilization instruments in public debt, debt dynamics management;

Reducing the state external debt;

Restructuring of the country's external debt;

Reducing the cost of servicing public debt.

The main method of public debt management is optimization

government loans. This approach goes beyond the concept of "method of regulation", representing practically a program for optimizing borrowing, within the framework of which internal and external loans are maneuvered.

The optimization approach concerns both the formation of debt and its service, including the following measures: ensuring the equivalence of changes in current debts and future taxes; maintaining a balance in issuing activities and collecting taxes with the process of increasing debt and the amount of its service; implementation of a debt stabilization policy linked to the investment process; carrying out measures to transform the debt growth policy into a restrictive policy stabilizing debt growth.

Bibliography

1. Alekhin, E. V. State and municipal finance: textbook / E. V. Alekhin. - Penza, 2010. - 350 p.

2. Kangro, M. V. State and municipal finance: textbook. allowance / M. V. Kangro. - Ulyanovsk: UlGTU, 2010. - 152 p.

3. Polyak, G. B. State and municipal finance: textbook. allowance / G. B. Polyak. - 3rd ed., revised. and additional - M.: UNITI-DANA, 2008. - 375 p.

4. Troshin, A. N. Finance and credit: textbook / A. N. Troshin, T. Yu. Mazurina, V. I. Fomkina. - M.: INFRA-M, 2009. - 408 p.

General concept state (public) debt The Russian Federation, its composition, management principles, service procedures, the program of state guarantees and the maximum amount of borrowings are formulated and legally fixed in the RF BC.

Under public debt(government credit) refers to the debt obligations of the Russian Federation to individuals and legal entities of the Russian Federation, constituent entities of the Russian Federation, municipalities, foreign states, international financial organizations, other subjects of international law, foreign individuals and legal entities that have arisen as a result of state borrowings of the Russian Federation, as well as debt obligations under state guarantees provided by the Russian Federation, and debt obligations arising as a result of the adoption of legislative acts of the Russian Federation on the attribution to state debt of debt obligations of third parties (Article 97 of the RF BC).

Public debt is divided into: capital debt - all debt obligations at the beginning of the year and current debt - forthcoming payments, the maturity of which occurs in the analyzed year.

Depending on the borrower, public debt is divided into public debt of the Russian Federation, state debt of a constituent entity of the Russian Federation And municipal debt.

The structure of the state debt of the Russian Federation, the state debt of a constituent entity of the Russian Federation, municipal debt, the types and urgency of the corresponding debt obligations are presented in Art. 98, 99, 100 BK RF.

Distinguish state interior And external duty.

The state debt is provided with all the property constituting the state treasury of the corresponding level of public authority.

State or municipal debt these are obligations arising from state or municipal borrowings, guarantees for obligations of third parties, other obligations in accordance with the types of debt obligations established by the RF Budget Code, assumed by the Russian Federation, a constituent entity of the Russian Federation or a municipality.

Under public domestic debt refers to obligations arising in the currency of the Russian Federation, as well as obligations of the constituent entities of the Russian Federation and municipalities to the Russian Federation, arising in foreign currency as part of the use of targeted foreign loans (borrowings).

Guaranteed savings of citizens in the currency of the Russian Federation are also public internal debt.

The period of state guarantees is determined by the period of fulfillment of the obligations for which the guarantee is provided.

Under public external debt refers to obligations arising in foreign currency, except for obligations of constituent entities of the Russian Federation and municipalities to the Russian Federation arising in foreign currency as part of the use of targeted foreign loans (borrowings).

When adopting the budget for the next financial year, :

The upper limit of the state external debt of the Russian Federation;

The upper limit of external debt to the Russian Federation;

The limit of providing guarantees to third parties.

The maximum amount of state external and internal borrowings is determined during the development of the draft budget for the next financial year and planning period and is approved in the form of a federal law.

The widespread use of government loans and credits entails a rapid increase in government debt, which necessitates the organization public debt management systems(Article 101 of the RF BC).

Public debt management is understood as a set of government actions related to the study of the situation on the loan capital market, the issuance of new loans and the development of conditions for issuance, the payment of interest on previously issued loans, the conversion and consolidation of loans, and the determination of the bond rate for money market, with carrying out activities to determine interest rates on government loans.

The supreme body for managing public credit - public debt in the Russian Federation is the Federal Assembly, which sets the maximum amount of both raising funds to finance the budget deficit, and lending at the expense of the budget.

Vnesheconombank is a specialized bank servicing external and internal foreign currency debt.

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

1. Keeping the amount of internal and external public debt at a level that ensures the preservation of the economic security of the country;

2. Minimizing the cost of debt by extending the term of borrowing and reducing the yield on government securities;

3. Fulfillment of financial obligations to investors;

4. Maintaining the stability of the public debt market;

5. Ensuring timely repayment of the state loan and payment of interest on it;

6. Effective use collected funds and control over their use.

The most acceptable is the timely receipt of income and repayment of the loan, the calculation of the principal amount of the debt and% on it. However, in the context of a significant increase in public debt and the budget deficit, the government is forced to resort to various methods of debt management.

These include:

Changing the terms of a loan in the direction of increasing its terms is called consolidation public debt. Consolidation of loans, as a rule, is carried out simultaneously with their unification, i.e. Consolidation of several loans into one loan. Target unification- reducing the number of simultaneously circulating securities, which reduces the state's debt service costs.

This operation results in consolidated(or funded) duty.

Under postponement loan repayment is understood as the postponement of the repayment date to a later date, and differs from consolidation in that in this case, not only the loan repayment terms are postponed, but the payment of income is stopped.

Conversion- change in the yield of the loan (decrease) - in order to reduce the cost of managing public debt or increase the yield for creditors.

To settle with the bondholders of the old loan, new loans are issued. This method of repaying old government loans is called refinancing and is related to conversion and consolidation.

Bond exchange by regression ratio- the process when several previously issued bonds are equated to one new bond. This method relieves the state of the need to perform calculations on bonds placed earlier.

innovation- replacement, by agreement of the parties, of the original debt obligations with new ones with the establishment of other conditions for servicing the debt and the terms of its repayment.

Cancellation public debt (default)- refusal of the state to repay previously issued obligations.

Conversion, consolidation, unification government loans and exchange bonds are carried out only in relation to internal loans.

Postponement, cancellation are usually used to control external debt.

In accordance with the legislation of the Russian Federation, it is not allowed to change the terms of a government loan put into circulation, including the terms of repayment, the amount of interest payments and the term of circulation.

The RF BC (Article 105) introduces the concept of “ debt restructuring» - termination of debt obligations constituting state or municipal debt, with the replacement of these debt obligations with other debt obligations providing for other conditions for servicing and repaying obligations.

Restructuring can be carried out simultaneously with a partial write-off of the principal amount.

The main task of managing Russia's public debt is to change the debt strategy and move from a course of deferred payments to a course of debt reduction.

In industrialized countries, there are government structures for managing public debt. In the USA - the Public Debt Bureau within the Federal Treasury, in Italy - the Expert Council on External Debt, in the Netherlands - the Agency of the Ministry of Finance, in Sweden - the National Debt Office within the Treasury.

Control questions:

1. What is the essence of public credit as an instrument of economic regulation.

2. Give the classification of the state loan

3. Name the functions of the state loan

4. On what grounds government loans are classified;

5. Indicate the forms and methods of managing public internal and external debt

6. What is meant by public internal and external debt management

7. Influence of the state internal and external debt on the economic security of the state