external loans
international loans loans received from foreign lenders or provided to foreign borrowers. V.z. can be provided in monetary form for the purchase of certain goods (export credits), for the purchase of goods in the creditor country ( financial loans), to settle the balance of payments and maintain exchange rates (foreign currency loans) and for other purposes. V.z. are issued for a specific period with the borrower's obligation to return the funds with interest (sometimes without interest). By terms, loans are divided into short-term (1-2 years), medium-term (5-7 years), long-term (15-20 years or more). The level of the interest rate depends on the term for which the loan is granted, inflation rates and other factors and is formed on the world capital market. Loans developing countries under the line of "official development assistance" are provided on preferential terms (for a period of up to 50 years with a low interest rate of 0.5-2% per annum and a relatively long grace period up to 15 years). One of the forms of V.z. issuing bonds, including state banks and their placement on the world capital market. V.z. issued by private firms and banks and government banking institutions, as well as international financial institutions. Short term loans provided by firms (company loans) and deposit banks (bank loans), as well as other short-term lending banks. Medium-term and especially long-term loans by financial institutions for long-term lending (investment companies and trusts, banking houses, insurance companies, etc.). Large long-term financial institutions issue credits and loans for various terms, including loans as assistance to developing countries on favorable terms. In the US and Japan, such loans are provided by export-import banks. Other countries also have public financial institutions providing V.z. Important role insurance plays a role in the development of external credit, while in most countries export credit insurance is mainly carried out government organizations(in the US and Japan by Export-Import Banks, in the UK by the Guarantee Department export credit). In the Russian Federation, the Russian Export-Import Bank was created for lending to foreign trade. Private and public V.z. and loans are forms of export of loan capital and not only serve as a source of profit for creditor countries, but also stimulate their export. At a time when an increasingly important role in foreign trade machinery and equipment play, export lending has become one of the main types of non-price competition. Major international financial institutions International Monetary Fund (IMF), issuing foreign currency loans, and the International Bank for Reconstruction and Development (IBRD, World Bank) with its affiliates the International Development Association (MAP) and the International financial corporation(IFC). The IBRD generally lends to developing countries to finance specific projects, mainly in the area Agriculture and infrastructure. MAP provides the same kind of loans at more favorable terms. Regional financial institutions also play a significant role in international lending. For example, in the European Union (EU) there is the European Monetary Cooperation Fund, which provides member countries with loans to regulate the balance of payments and maintain exchange rates, and the European investment bank, which lends to measures to promote the development of backward areas and the modernization of individual industries, as well as the European Development Fund, which carries out concessional lending developing countries associated with the European Economic Community (EEC). The provision of significant amounts of loans and credits to developing countries, including in the form of development assistance, although played a role in addressing their economic problems, eventually led to their gigantic foreign debt, which is a heavy burden on the economy, is now one of the main factors holding back economic growth. Developing countries themselves play a certain role in external lending, especially in mutual lending. In the context of the rapid growth of oil prices and revenues from it, members of the Organization of the Petroleum Exporting Countries (OPEC) actively participated in foreign economic lending, especially Arab countries. Financial institutions have been set up to mutual lending and in the economic groupings of developing countries. There are also the Asian Development Bank, the African Development Bank, the Inter-American Development Bank, etc.The Budget Code of the Russian Federation (Article 89) defines government borrowings of the Russian Federation as loans raised from individuals and legal entities, foreign states, international financial organizations, for which there are debentures RF as a borrower or guarantor of repayment of loans by other borrowers.
State debt. As a result of borrowing activities, a state debt is formed - debt obligations of the Government of the Russian Federation to individuals and legal entities, foreign states, international organizations and other subjects of international law (Budget Code, Art. 97). Accordingly, state and national debt are distinguished.
The national debt is a broader concept and includes the debt not only of the Government of the Russian Federation, but also of the lower levels of government that are part of the state.
All property constituting the state treasury serves as security for the state debt of Russia.
Debentures Russian Federation may exist in the following forms (Budget Code, Art. 98):
1) credit agreements and contracts concluded on behalf of the Russian Federation with credit institutions, foreign states and international financial organizations, in favor of these creditors;
2) state valuable papers issued on behalf of the Russian Federation;
3) contracts for the provision state guarantees Russian Federation, surety agreements of the Russian Federation to ensure the fulfillment of obligations by third parties;
4) re-registration of debt obligations of third parties into the state debt of the Russian Federation on the basis of adopted federal laws;
5) agreements and contracts, including international ones, concluded on behalf of the Russian Federation, on the prolongation and restructuring of the debt obligations of the Russian Federation of previous years.
AT Budget Code The Russian Federation (Article 98) specifically stipulates that changing the terms of a state loan put into circulation, including the terms of payment and the amount of interest payments, the maturity period, is not allowed.
Public debt consists of the debt of past years and newly arisen debt. The Russian Federation is not responsible for the debt obligations of the national-territorial entities of the Russian Federation, if they were not guaranteed by the Government of the Russian Federation. The form of debt obligations of the national-state and administrative-territorial entities of the Russian Federation and the conditions for their issue are determined independently on the ground.
Internal and external loans. As already noted, depending on the location, loans are divided into internal and external, differing in the types of loan instruments, terms of placement, composition of creditors, loan currency.
Lenders for internal loans are mainly individuals and legal entities that are residents of this state, although a certain part of them can be acquired and foreign investors. Domestic loans usually issued in national currency. To raise funds, securities are issued that are in demand on the national stock market. Various tax incentives are used to further encourage investors.
The Budget Code of the Russian Federation (Article 89) defines state domestic borrowings as loans attracted from individuals and legal entities, foreign states, international financial organizations in the currency of the Russian Federation, for which debt obligations of the Russian Federation arise as a borrower or guarantor of repayment of loans by other borrowers, denominated in foreign currency RF.
External loans are placed on foreign stock markets in the currencies of other states. When placing such loans, the specific interests of investors in the country of placement are taken into account.
The Budget Code of the Russian Federation (Article 89) defines the state external borrowings Russian Federation as loans attracted from individuals and legal entities, foreign states, international financial organizations in foreign currency, for which debt obligations of the Russian Federation arise as a borrower or a guarantor of repayment of loans by other borrowers, denominated in foreign currency.
Borrowed funds of the Russian Federation are mobilized mainly in two ways:
1) placement of debt securities;
2) obtaining loans from specialized financial and credit institutions.
The procedure for issuing and placing the first is regulated federal law“On the Features of the Issue and Circulation of State and Municipal Securities” dated July 29, 1998 (No. 136-FZ), according to which securities issued on behalf of the Russian Federation are recognized as federal government securities.
Obligations of the Russian Federation, a constituent entity of the Russian Federation, resulting from the issue of securities and components domestic debt must be expressed in the currency of the Russian Federation and payable in the currency of the Russian Federation. Foreign currency, conditional monetary units and precious metals may be specified in the General Conditions for the Issue and Circulation of Government Securities, as well as in the details of certificates as an appropriate clause, on the basis of which the amount of payment for these government securities is determined.
Obligations of the Russian Federation and a subject of the Russian Federation arising from the issue of government securities and constituting the external debt of the Russian Federation and a subject of the Federation must be expressed in foreign currency and payable in foreign currency.
Since the mid-90s, the borrowing activity of the Central Government of the Russian Federation in the securities market has rapidly intensified, which is explained by the refusal to use loans. Central Bank RF to cover the budget deficit. At the same time, high-yield securities are issued to raise funds. As a result, more and more federal budget used to cover debt service costs. In 1997, these expenditures increased significantly, amounting to 28% of all federal budget expenditures against 16% in 1996. The rapid increase in expenditures related to servicing the public debt indicates that the growth of the RF public debt has become a self-generating process.
In the Russian Federation operates one system accounting and registration of state borrowings of the Russian Federation. To do this, the Ministry of Finance must maintain state books of internal and external debt RF. Information on borrowings of a subject of the Russian Federation or a municipality is entered, respectively, in the debt book of the subject or the municipal debt book
is a form of obtaining a loan by the state from external creditors.
Depending on the purpose of use, an external loan is classified into the following types:
- export loan (for the purchase of certain products);
- financial loan (for the purchase of goods in the creditor country);
- foreign currency loan (for the purpose of settling the balance of payments).
By maturity, external loans are classified into:
- short-term (approximately issued up to 2 years);
- medium term (provided to the state for 5-7 years);
- long-term (issued to the country for 20 years or more).
An external loan provides for the return of money with interest. In some cases, the creditor country does not require the payment of interest. The interest rate depends on the following factors:
- inflation rates;
- the term for which the loan is issued.
One form of external loan is the issue of bonds, especially by state banking institutions, which are placed on the world capital market. In addition to the term "bond", other designations such as "certificate", "treasury" or "loan" are also used. Each state uses its own terminology for its securities. Governments have several advantages over other stocks and assets:
- are characterized by the highest relative level of reliability for invested funds;
- have a minimal risk of loss of fixed capital and profit on it;
- have preferential prices compared to other types of securities.
Features of issuing external loans
External loans to developing countries are provided through the "Official Development Assistance Line". They provide special concessions:
- the term for which this loan is provided is up to 50 years;
- low interest rate- usually 0.5 - 2% per annum.
An external loan for 1-2 years is usually issued by private companies (company loans) and deposit banking institutions (), as well as other short-term lending banks. A loan for more than 5 years is provided by financial institutions that specialize in long-term lending (for example, insurance companies, banking houses, investment trusts and firms, international organizations).
In the United States and Japan, large external long-term loans are provided by export-import banking institutions.
The main international financial and credit organizations that provide loans to developing states to finance certain projects (in most cases in the field of infrastructure and agriculture):
- international bank reconstruction and development (issues foreign exchange loans);
- International Development Association.
Regional financial institutions also play a significant role in international lending. For example, in the EU there are:
- European Monetary Cooperation (issues loans to member states for the settlement of the balance of payments);
- European (credits measures to promote the development of backward regions, the modernization of their individual industries);
- European Development Fund.
Cons of an external loan for European countries
The provision of significant amounts of credit to developing European states in the form of development aid has, of course, played a part in solving their important economic problems. But, as experts note, the loans eventually led to the formation of a gigantic foreign debt. The latter is today one of the main factors that hold back the economic growth of developing European countries.
External
A certain role in external lending is played by the developing states themselves. In the context of the rapid growth in the cost of "black gold" and income from it, active participation in foreign economic lending was observed on the part of OPEC members, especially the Arab countries.
In the economic groupings of the developing countries, financial organizations were created for mutual lending. Also function for issuing external loans and financial institutions such as:
- Asian;
- Inter-American Development Bank;
- African Development Bank.
In the Russian Federation, the Russian Export-Import Bank was created to provide foreign loans.
Insurance and foreign loans
Insurance plays an extremely important role in external lending. Export credit insurance is mainly carried out in most countries by government organizations. For example, in the UK, this operation is carried out by the Export Credit Guarantee Department, in the United States and Japan, by export-import banking institutions.
Private and state external loans are forms of export of credit capital, serve as a source of profit for creditor countries, and stimulate their export well.
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24. Public debt. Internal and external loans.
Budget code RF (Article 89) defines RF government borrowings as loans, attracted from individuals and legal entities, foreign states, international financial organizations, for which there are debentures RF as a borrower or guarantor of repayment of loans by other borrowers.
State debt. As a result of borrowing, state debt - debt obligations of the Government of the Russian Federation to individuals and legal entities, foreign states, international organizations and other subjects of international law (Budget Code, Art. 97). Accordingly, state and national debt are distinguished.
National debt - a broader concept and includes the debt not only of the Government of the Russian Federation, but also of the management bodies of the lower levels that are part of the state.
All property constituting the state treasury serves as security for the state debt of Russia.
Debt obligations of the Russian Federation may exist in the following forms (Budget Code, Art. 98):
1) credit agreements and contracts concluded on behalf of the Russian Federation with credit institutions, foreign states and international financial organizations, in favor of these creditors;
2) government securities issued on behalf of the Russian Federation;
3) agreements on the provision of state guarantees of the Russian Federation, agreements on the guarantee of the Russian Federation to ensure the fulfillment of obligations by third parties;
4) re-registration of debt obligations of third parties into the state debt of the Russian Federation on the basis of adopted federal laws;
5) agreements and contracts, including international ones, concluded on behalf of the Russian Federation, on the prolongation and restructuring of the debt obligations of the Russian Federation of previous years.
The Budget Code of the Russian Federation (Article 98) specifically stipulates that changing the terms of a state loan issued into circulation, including the terms of payment and the amount of interest payments, the maturity period, is not allowed.
State debt consists of debts of previous years and newly arisen debts. The Russian Federation is not responsible for the debt obligations of the national-territorial entities of the Russian Federation, if they were not guaranteed by the Government of the Russian Federation. The form of debt obligations of the national-state and administrative-territorial entities of the Russian Federation and the conditions for their issue are determined independently on the ground.
Internal and external loans. As already noted, depending on the location, loans are divided into internal and external, differing in the types of loan instruments, terms of placement, composition of creditors, loan currency.
Lenders on domestic loans predominantly are individuals and legal entities that are residents of this state, although a certain part of them can also be acquired by foreign investors. Domestic loans are usually issued in local currency. To raise funds, securities are issued that are in demand on the national stock market. Various tax incentives are used to further encourage investors.
The Budget Code of the Russian Federation (Article 89) defines state domestic borrowings as loans attracted from individuals and legal entities, foreign states, international financial organizations in the currency of the Russian Federation, for which debt obligations of the Russian Federation arise as a borrower or guarantor of repayment of loans by other borrowers, denominated in foreign currency RF.
External loans placed on foreign stock markets in the currency of other states. When placing such loans, the specific interests of investors in the country of placement are taken into account.
The Budget Code of the Russian Federation (Article 89) defines state external borrowings of the Russian Federation as loans attracted from individuals and legal entities, foreign states, international financial organizations in foreign currency, for which debt obligations of the Russian Federation arise as a borrower or a guarantor of repayment of loans by other borrowers, denominated in foreign currency.
Borrowed funds of the Russian Federation are mobilized mainly in two ways:
1) placement of debt securities;
2) obtaining loans from specialized financial and credit institutions.
1. Public debt of the Russian Federation represents debt obligations of the Russian Federation to individuals and legal entities, foreign states, international organizations and other subjects of international law. This debt is secured by all federally owned property constituting the state treasury.
The state debt of the Russian Federation includes liabilities in the following forms:
1) credit agreements and contracts concluded on behalf of the Russian Federation with credit institutions, foreign states, international financial organizations, in favor of these creditors;
2) government securities issued on behalf of the Russian Federation;
3) agreements on the provision of state guarantees by the Russian Federation, agreements on the surety of the Russian Federation to secure obligations by third parties;
4) re-registration of debt obligations of third parties into the state debt of the Russian Federation on the basis of adopted federal laws;
5) agreements and contracts, including international ones, concluded on behalf of the Russian Federation, on the prolongation and restructuring of debt obligations of previous years.
The debt obligations of the Russian Federation are divided into short-term (up to one year), medium-term (from one year to five years) and long-term (from five to 30 years). They are repaid within the terms determined by the specific terms of the loan, and cannot exceed 30 years.
Changing the terms of a state loan put into circulation, including the terms of payment, the amount of interest payments and the term of circulation, is not allowed.
2. Public debt of a subject of the Russian Federation- is a set of debt obligations of the subject of the Russian Federation. It is provided with all the property owned by the subject of the Russian Federation, constituting its treasury. Debt obligations of the subject of the Russian Federation exist in the following forms: see above, only on behalf of the subject.
The debt obligations of a constituent entity of the Russian Federation are repaid within the terms determined by the terms of borrowing and cannot exceed 30 years. The forms and types of government securities issued on behalf of the constituent entities of the Russian Federation, the conditions for their issuance and circulation are determined by the relevant state authorities of the constituent entities of the Russian Federation.
3.Municipal dol d consists of a set of debt obligations of the municipality. It is provided by all municipal property constituting the municipal treasury. The debt obligations of the municipality exist in the following forms:
credit agreements and contracts concluded by the municipality;
loans of the municipality, carried out by issuing securities on behalf of the municipality;
contracts for the provision of municipal guarantees, contracts of guarantee of the municipality to ensure the fulfillment of obligations by third parties;
debt obligations of legal entities re-registered into municipal debt on the basis of legal acts of local governments.
Debt management. To conduct an effective financial policy in the field of state and municipal borrowing, the process of managing state and municipal debt is of particular importance; the government manages the state debt of the Russian Federation. The state debt of the constituent entity of the Russian Federation is managed by the executive body of the constituent entity of the Russian Federation. Municipal debt is managed by the local government commissioner. The Russian Federation shall not be liable for the debt obligations of the constituent entities of the Russian Federation and municipalities, if these obligations were not guaranteed by the Russian Federation. Subjects of the Russian Federation and municipalities are not liable for the debt obligations of the Russian Federation, as well as for the debt obligations of each other, if these obligations were not guaranteed by them. During the financial crisis, there is a need restructuring, those. repayment of debt obligations with the simultaneous implementation of borrowings or the assumption of other debt obligations in the amount of other debt obligations with the establishment of other terms of service and repayment periods. Debt restructuring can be carried out with a partial write-off or a reduction in the amount of the principal debt.
In order to regulate the amount of public debt, its maximum volumes are established. The maximum volumes of the state internal and external debt for the next financial year are approved by the federal law on the federal budget, with a breakdown of the debt by form of securing obligations. The law of the subject of the Russian Federation on the budget, the legal act of the local government on local budget the upper limit of the debt of the subject of the Russian Federation, municipal debt is established. The maximum amount of public debt of a constituent entity of the Russian Federation, municipal debt cannot exceed the amount of revenues of the corresponding budget, excluding financial assistance from the budgets of other levels budget system RF.
Issue of state and municipal securities is carried out on the basis of a federal law, a law of a constituent entity of the Russian Federation, or a decision of a local government body on the approval of the following indicators:
1) the maximum amount of the relevant state or municipal debt;
2) volume limit borrowed money sent by the Russian Federation, a constituent entity of the Russian Federation or municipality in the current financial year to finance the budget deficit of the corresponding level; this indicator should not exceed: for a constituent entity of the Russian Federation - 30% of the volume of budget revenues of a constituent entity of the Russian Federation for the current financial year, excluding financial assistance from the federal budget and attracted and current fiscal year borrowed money; for a municipality - 15% of local budget revenues, excluding financial assistance from the federal budget and the budget of a constituent entity of the Russian Federation, as well as excluding borrowed funds attracted in the current financial year. When calculating the maximum amount of borrowed funds, funds attracted and fully used in current year to repay or restructure debt;
3) the cost of servicing the state and municipal debt in the current year. The maximum volume of these expenditures should not exceed 15% of the expenditures of the relevant budget.
All expenses for the repayment of obligations of the state debt of the constituent entities of the Russian Federation, municipal debt are accounted for in the expenditure side of the budgets of the constituent entities of the Russian Federation, local budgets as expenses for the repayment of state or municipal debt.
The procedure for servicing the state and municipal debt. The costs of placement and redemption of the debt obligations of the Russian Federation are made at the expense of the federal budget. The public internal debt of the Russian Federation is serviced, as a rule, by the Bank of Russia and its institutions through operations for the placement of debt obligations of the Russian Federation, their repayment and payment of income in the form of interest on them or in another form.
The performance by the Bank of Russia, another specialized financial institution of the functions of the general agent of the Government of the Russian Federation for the placement of debt obligations of the Russian Federation, their repayment and payment of income in the form of interest on them is carried out on the basis of special agreements concluded with the issuer of government securities. The state internal debt of a constituent entity of the Russian Federation, municipal debt are serviced in accordance with federal laws, laws of constituent entities of the Russian Federation and legal acts of local governments.
The amount of the state debt of the Russian Federation:
As of January 1, 2005, Russia's state external debt, including obligations of the former USSR, fell to $110.5 billion from $119.7 billion as of January 1, 2004, the RF Ministry of Finance said in a statement.
At the same time, when converted into euros, the volume of Russia's external debt for 2004 also decreased - to 81.1 billion euros as of January 1, 2005 from 95.7 billion euros as of January 1, 2004.
Including the debt of the Russian Federation to the countries - members of the Paris Club of creditors decreased as of January 1, 2005 to $43.1 billion (31.7 billion euros) compared with $47.7 billion (38.2 billion euros) by 1 January 2004. Meanwhile, the debt to countries not included in the Paris Club fell as of January 1, 2005 to $6.6 billion (4.9 billion euros) compared with $7 billion (5.6 billion euros) at the beginning of 2004 .
Today you can hear a lot in the media that Russia often acts as a creditor for other countries. This practice credit relations is not at all rare - countries quite often take from each other cash in debt to cover the expenditure item in its budget.
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This is how the concept of a state loan appeared. It is important to remember, however, that domestic public borrowing can also occur in modern world. Let's consider them in more detail.
What is it
A state loan is a form of raising money for a specified period in the state budget. Among other types of loans, a special place is occupied by loans in which one of the parties to the credit relationship is the state.
In most cases, the state is assigned the status of a debtor, which, with the help of loans, attracts new investments for the full performance of its own functions.
The lender in such a situation can be individuals and legal entities, as well as investors from other countries and foreign states themselves. Quite rarely, the state can act as a guarantor if other borrowers ask for it, or in the status of a creditor.
Nuances:
- A government loan can be considered an element of the general financial system. Today it is very difficult to find a state that does not need additional investment;
- If there is not enough income from tax collection and other revenues to ensure the expenditure part of the state budget, then, in order to cover its deficit, it is necessary to attract money on the terms of their return.
This method of lending can be used to cover the budget deficit along with emission, and this lending can be considered one of the main ones today.
After the term of the loan ends, the state is obliged to pay the funds in accordance with loan agreement along with interest. The total amount of debt and interest that is not paid forms the total public debt.
If we compare such a loan with a bank or commercial loan, which is provided to meet the needs of an economic entity state loan, the following differences can be found:
- In most cases, it is allocated in order to cover the deficit;
- As material support property that belongs to the country and is engaged in the formation of its treasury can act. Respectively, this species lending is more reliable for the lender;
- The target nature of this loan is less stringent than that of a commercial product;
- The source of debt payment is other loans and taxes, and not the funds that were received as a result of economic activity;
- These types of loans can lead to a decrease in the money that is in circulation.
Kinds
Such loans have several types, respectively, their classification depends on some features.
According to the place of issue, one can distinguish:
- External loans. In this case, the lenders are different states;
- municipal loans. Subjects of the Russian Federation act as debtors. Such loans can be issued in different currencies, and any entity can act as a creditor;
- Domestic loans. They are characterized by execution and settlement exclusively in the national currency.
There are also the following forms of implementation - according to the deadline for fulfilling obligations:
- medium-term;
- Long-term;
- Short term.
Also, such loans can be:
- non-bond;
- Win-win. Here all bonds can win during the maturity of obligations;
- With interest;
- No interest;
- Warranty;
- Intergovernmental;
- "Shortened" - with a similar type, the loan amount less than the amount collateral under the contract.
Securities and domestic government loans
These documents are usually submitted in the following formats:
- For internal use;
- Bonds of the state savings loan;
- State obligations of a short-term nature;
- Federal bonds;
- State obligations providing for long term cooperation;
- Zero-coupon bonds of the Central Bank;
- For an internal state foreign currency loan;
- Eurobonds;
- External.
As for the conditions for issuing Eurobonds, they can be seen in the following table:
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Bills and bonds
Typically, bonds are debt repayment obligations with structured terms and interest that accrue for the use of the loan. Bonds are of two types - targeted and impersonal. Targeted bonds are intended to be invested in a specific project, while depersonalized bonds are needed in order to cover the budget deficit.
At any time, bondholders can recover their funds by reselling credit obligations outsiders.
A bill of exchange is, by definition, a treasury bill. In other words, these are liabilities that can cover the deficit of the municipal or state budget by accruing interest on income. Usually bills have annual term validity and it is quite rare to see a bill of exchange, the validity of which is 5 years.
Emission
State loans can be classified by issue into local and state. For types of loans where the debtor is the state, this process is carried out central administration, and all money according to obligations should be used in the state budget. With frequent borrowings, the emission is carried out by local organizations, respectively, the money goes to the budget of the subject of the Russian Federation.
The issue of such loans is carried out in the following forms:
- Cashless;
- Cash.
Under debt repayment rules, an issue may be characterized by the right to payment before maturity, or even without it.
According to the method of issue, government loans are divided into:
- By subscription;
- Forced order;
- Voluntary.
Market and non-market
The type of credit under consideration may be non-market or market, and this depends on the freedom of circulation. The use of market loans implies that the securities can be resold after they are put into circulation. In those countries where the industry is well developed, their share is about 70% of the amount of public debt.
Non-market government loans are issued in stock instruments that do not enter the Central Bank market for the second time.
An investor in such a situation will be able to sell them to those from whom he bought, that is, to the state. This type of securities is not valuable in the stock markets. These types are issued by the issuer in order to attract small creditors among the Russian population.
Unsecured and collateral
State credit can be issued on the terms collateral or without it. State income, or some part of the property, can act as such security. This form of lending is the standard way of lending that has been adopted in the current funding system.
Unsecured loans are not characterized by the provision of collateral, and they can be issued by a state that has a high authority, which guarantees timely payments according to the obligations taken.
Payouts
At the present time, payments can take the following forms:
- Discount;
- win-win;
- Interest;
- winning;
- Interest-free.
At the same time, income from loans can be characterized by the presence of a mixed character - in other words, it can be interest-winning, or, for example, interest-discount, etc. The rate can have a floating status when calculating interest, it can also be fixed. It tends to change depending on the situation in the financing market.
Public debt management
This is a set of measures that are taken by the state and the Central Bank of the Russian Federation, which is sent to pay off the debt.
These activities should include:
- Payments to creditors;
- Loan payments of any type;
- Changing the terms of lending to more attractive ones;
- Issue of new loans;
- Providing guarantees.
As such a measure, refinancing can only be considered when earmarked funds lacks. In order for the result of the activities carried out to have an effect, decisions must be made in a balanced way, and they must also be structured.
