What does servicing public debt mean? National debt

Refinancing- repayment of old government debt by issuing new loans.

Conversion- a change in the profitability of the loan, for example, a decrease or increase in the interest rate of income paid by the state to its creditors.

Consolidation- increasing the validity period of already issued loans.

Unification- combining several loans into one.

Deferment of loan repayment is carried out in conditions where further active development of operations to issue new loans is not effective for the state.

Debt cancellation- refusal of the state from debt obligations.

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

13. Public debt: essence, types, forms of management.

National debt– these are issued and not repaid obligations of government bodies.

Classification of debt according to various criteria:

1)Depending on the extent of coverage of the totality of obligations:

Principal debt (the entire amount of government debt that is not due and cannot be presented for payment during a given period)

Current debt (state debt for obligations for which payment has become due)

2) according to the form of obligations:

Loan raised on behalf of the Russian Federation

State securities of the Russian Federation

Budget loan of the Russian Federation - state guarantee of the Russian Federation

3) depending on the borrowing market, type of lender and borrowing currency:

Domestic (debt in Russian currency)

External (debt in foreign currency)

4) by type of borrower:- debt of the Russian Federation - debt of the constituent entities of the Russian Federation - municipal debt

5) according to urgency:- short-term (less than 1 year)

Medium-term (from 1 to 5 years)

Long-term (from 5 to 30 years inclusive)

The existence of public debt also implies the need to manage it. Public debt management refers to the totality of actions of the state represented by its authorized bodies to regulate the size, structure and cost of servicing public debt.

The growth of public debt entails many negative consequences:

1.the existence of external debt implies the transfer of part of the product created within the country abroad

2. entails a decrease in the standard of living of the population

3. increasing tax rates, as a means of paying off government internal debt, can undermine the effects of economic incentives for production development

Sources of repayment of government debt : state budget revenues and reserve fund funds.

Supreme authority for public debt management - Federal Assembly. It establishes the most important parameters within the framework of the federal law on the federal budget public debt: maximum amounts of internal and external public debt; maximum volume of annual external borrowings; expenses for servicing public debt in the current year

The process is of particular importance public debt management– a set of measures by the state to accept, regulate and repay financial borrowings. It is carried out at the level of the Russian Federation - by the Government of the Russian Federation, in the constituent entities - by executive authorities, in municipal associations - by local government bodies.

Methods of public debt management :

1) restructuring - repayment of debt obligations = simultaneous borrowing in the same amount of other debt obligations with the establishment of other conditions for servicing government debt (interest payment, debt amount, repayment period);

2) obtaining a technical loan - the lender provides a new loan used to pay off old debt;

3) extension of the loan agreement - extension of the term of the loan agreement;

4) consolidation - combining various debt obligations and replacing them with another debt obligation;

5) convention – maintaining the level of profitability of debt obligations;

6) determination of the maximum amount of annual borrowings.

Introduction

3 Public debt management

Chapter 2. Public debt of the Russian Federation and its impact on the functioning of the economy

1 Current state of external public debt of the Russian Federation

2 Current state of the internal public debt of the Russian Federation

Conclusion

References

Appendix A

Appendix B

Appendix D

Introduction
Most countries in the world, when carrying out economic transformations, turn to external and internal sources of financing. Rational use of loans helps accelerate economic development and solve socio-economic problems. However, the lack of a coherent state policy to attract and use both external and internal loans leads to the formation of public debt, which becomes a serious obstacle to economic transformation.
The problem of government loans is one of the most pressing problems in the Russian economy.
The size of public debt is important; one of the main issues is determining the level of influence of public debt on the functioning of the country's economy.
Public debt can have a positive and negative impact on the socio-economic processes of the country. Thus, under certain conditions, debt has a positive effect on economic growth. At the same time, it is necessary to precisely determine these conditions, which requires an adequate policy for managing public debt.
The unfavorable dynamics of public debt, caused by the huge costs of servicing it, forced many economists to engage in in-depth research and search for solutions to the problem that has arisen in the financial system of our country. Indeed, the outstanding public debt is one of the obstacles to the normal economic development of the country.
The purpose of the course work is to study the impact of public debt on the economy of the Russian Federation.
The purpose of the work defines the following tasks:
Reveal the essence of public debt and the reasons for its occurrence.
Consider the forms and types of public debt.
Consider public debt management.
Analyze the current state of the external and internal public debt of the Russian Federation and its impact on the economy.
Chapter 1. Economic content of public debt
1 The essence of public debt and the reasons for its occurrence
Public debt is understood as the result of financial borrowings by the state carried out to cover the budget deficit. The public debt is equal to the sum of the deficits of previous years, taking into account the deduction of budget surpluses.
The public debt of the Russian Federation includes debt obligations of the Russian Federation to individuals and legal entities, constituent entities of the Russian Federation, foreign states, international financial organizations, other subjects of international law, foreign individuals and legal entities arising as a result of government 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 of debt obligations of third parties to public debt.
According to current legislation, state and national debt should be distinguished. The latter concept is broader and includes the debt not only of the Government of the Russian Federation, but also of the governing bodies of the republics that are part of the Russian Federation and local authorities.
The state debt of the Russian Federation is fully secured by all federally owned property that makes up the state treasury. Despite the fact that the state's credit relations are provided by its treasury, the repayment of debt obligations and their servicing are carried out at the expense of federal budget revenues. The Budget Code of the Russian Federation instructs federal government bodies to use all powers to generate federal budget revenues in order to repay debt obligations and service the public debt of the Russian Federation.
Public debt is a direct consequence of the state's credit policy. Its composition depends on the forms of public credit that are used to attract temporarily free funds at the disposal of public authorities. According to Article 98 of the Budget Code of the Russian Federation, the volume of public debt of the Russian Federation includes only the amount of the principal debt on loans, the nominal amount of debt on government securities and the volume of obligations under guarantees issued by Russia. The payment of interest and non-interest income on government borrowings does not form part of the public debt, since according to the Budget Code of the Russian Federation they are an independent form of federal budget expenditures.
Public debt arises when government expenses begin to exceed its revenues, i.e., a budget deficit is formed which is covered by government borrowing.
The causes of public debt are:
emergency circumstances (wars, terrorist attacks, major natural disasters), when reserve funds are insufficient and the government has to resort to additional borrowing;
economic downturns that are caused by automatically achieved economic instability. That is, in an economic recession, national income decreases, which leads to a decrease in tax revenues and a budget deficit arises, which is repaid by government loans;
crisis phenomena in the economy - ineffectiveness of economic infrastructure, financial and credit relations, monetary, banking and fiscal policies. That is, in this case there is a need for structural restructuring of the economy. In such cases, urgent economic measures are required to stabilize the economy, which require large amounts of money;
large government investments in economic development. In this case, the budget deficit reflects active state regulation of the economy, the desire to ensure progressive changes in its structure;
socio-economic policy of the state. The main reason for large budget deficits is a decrease in tax revenues without adjusting government spending, as well as unsatisfactory organization of tax collection and payments (high costs of organizing tax collection, tax evasion);
social changes. For example, an increase in the proportion of elderly people in the population structure entails an increase in government spending on social security and health care.
2 Forms and types of public debt
In accordance with the legislation of the Russian Federation, the composition
government debt include:
credit agreements and contracts concluded on behalf of the Russian Federation, as a borrower, with credit organizations, foreign states and international financial organizations;
government loans carried out by issuing securities on behalf of the Russian Federation;
treaties and agreements on the receipt by the Russian Federation of budget loans and budget credits from budgets of other levels of the budget system of the Russian Federation;
agreements on the provision of state guarantees by the Russian Federation;
agreements and agreements concluded on behalf of the Russian Federation on the restructuring of debt obligations of the Russian Federation of previous years.
Types of public debt.
Depending on the duration and volume of obligations, public debt is divided into:
Capital public debt is the entire amount of the government's issued and outstanding debt obligations, including accrued interest that must be paid on those obligations.
Current public debt is the government's expenses to pay income to creditors and repay obligations that have come due.
Depending on the borrowing market and the currency of the obligations arising, public debt is divided into:
external public debt is loans raised 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 guarantor of loan repayment by other borrowers, expressed in foreign currency.
The internal debt of the Russian Federation is 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 loan repayment by other borrowers, expressed in the currency of the Russian Federation.
The volume of external public debt includes:
the nominal amount of debt on government securities of the Russian Federation, the obligations for which are expressed in foreign currency;
the volume of principal debt on loans received by the Russian Federation and the obligations for which are expressed in foreign currency, including targeted foreign borrowings raised under state guarantees of the Russian Federation;
the volume of obligations under state guarantees of the Russian Federation, expressed in foreign currency.
The volume of domestic public debt includes:
the nominal amount of debt on government securities of the Russian Federation, the obligations for which are expressed in the currency of the Russian Federation;
the volume of principal debt on loans received by the Russian Federation and the obligations for which are expressed in the currency of the Russian Federation;
the volume of principal debt on budget loans received by the Russian Federation;
the volume of obligations under government guarantees expressed in the currency of the Russian Federation;
the volume of other (except for those indicated) debt obligations of the Russian Federation, payment of which in the currency of the Russian Federation is provided for by federal laws before the entry into force of this Code.
In some cases, an additional criterion for distinguishing public debt into external and internal may be the subject composition. The provision of credit funds to the state by residents indicates the formation of internal debt; borrowing funds from non-residents leads to the formation of external debt.
In terms of terms, government obligations can be:
short-term (up to 1 year);
medium-term (from 1 year to 5 years);
long-term (from 5 to 30 years).
Debt obligations are repaid within periods that are determined by the specific terms of the loan and cannot exceed 30 years. Changing the terms of a government loan issued for circulation, including the terms of payment and the amount of interest payments, the circulation period, is not allowed.
public debt national economy
1.3 Public debt management
The process of managing public debt is of particular importance for the implementation of effective financial policy in the field of public borrowing. Public debt management is understood as a set of financial measures of the state to use debt relations aimed at repaying debt obligations and creating favorable socio-economic conditions for the country’s development; It is also one of the areas of the country’s fiscal policy, associated with the activities of the state in external and internal financial markets as a borrower and guarantor. Management involves attracting financial resources by placing securities or other sources, repaying and servicing debt obligations.
The ideal way to service and repay public debt is to repay it and interest on it in a timely manner. However, the state's intentions do not always coincide with real possibilities. Some unforeseen circumstances arise due to economic, social or political difficulties. There is a need to defer interest payments or pay the principal amount, change the terms of the loan, and sometimes completely refuse payments. A clear sign of a debt crisis is a serious violation of the payment schedule. The state is forced to resort to various ways to regulate debt.
Activities that contribute to the repayment of public debt include:
repayment of external and internal loans;
providing guarantees;
changes in the terms of issued loans;
determining the conditions for issuing and placing new government debt, etc.
The implementation of these activities depends on making informed decisions in the process of managing public debt, which is based on an analysis of the volume and structure of the debt, an objective assessment of its current state. In this case, absolute and relative indicators are used.
Absolute indicators reflect the volume of government internal and external debt in monetary terms, the amount of expenses associated with its repayment and servicing.
The main relative indicators that significantly influence administrative decision-making and the choice of methods for managing public debt include:
percentage ratio of debt to GDP;
the share of expenses for repayment and servicing of public debt in the total amount of budget expenditures.
Public debt management is a continuous process that includes 3 stages:
at the first stage, the maximum amounts of government borrowing and guarantees for the next budget year are determined, tools for attracting resources and increasing the efficiency of their use are selected.
at the second stage, resources are attracted in external or internal financial markets by issuing and placing government securities, obtaining a loan or providing government guarantees, and then these funds are used to finance current budget expenditures or investment projects.
the third stage is to search for sources of financial resources to repay and service public debt, reduce overall costs, and timely fulfill debt obligations.
Methods of managing public debt can be divided into administrative and financial.
Administrative methods are based on the quick and precise implementation of individual orders of public authorities and management; they do not provide for an assessment of the economic efficiency and results of actions to manage public debt.
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.
In a debt crisis, when the state is experiencing difficulties in fulfilling previously assumed obligations to repay and service public debt, the following tools are used:
refinancing - issuing new loans to cover previously issued debt obligations. There are three ways to refinance government debt:
)replacement of expired obligations with new ones, equivalent in amount to those being repaid;
)early replacement of some obligations with others with longer repayment periods;
)placement (sale) of new bonds and, using the proceeds, repayment of expired bonds.
loan conversion - the use of various mechanisms to ensure the replacement of public debt with other types of obligations that are less burdensome for the country's economy. The most common types of conversion are the exchange of debt for shares, the exchange of debt for goods, the repurchase of debt by the borrower on special terms, the conversion of debt into debt obligations of third countries, and others;
consolidation of loans - changing the validity period of previously issued loans;
Cancellation - waiver of all obligations under previously issued loans. But the use of this method leads to irreparable damage to the state’s reputation as a borrower;
debt restructuring - repayment of debt obligations while simultaneously borrowing (assuming other debt obligations).
Thus, public debt management directly affects economic growth, inflation, interest rates, employment, and the volume of investments in the country’s economy as a whole and in the real sector of the economy.
Chapter 2. Debt of the Russian Federation
1 Current state of the external debt of the Russian Federation
In recent years, thanks to the favorable conditions on the world commodity markets, as well as competent government policies in the monetary and fiscal spheres, the debt burden of the Russian Federation has decreased significantly. If previously debt payments tied up the entire economy of the country and were an unbearable burden for it, now, thanks to a flexible fiscal policy, they are not so burdensome; the government can afford to make early debt payments and spend on other sectors of the economy.
In absolute terms, the external public debt of the Russian Federation is one of the lowest in Europe. And in terms of relative indicators, it is one of the lowest in the world, amounting to only 2.5% of GDP. But such a favorable situation was not always observed. Thus, after the collapse of the USSR, the external debt of the Russian Federation steadily increased and reached its maximum immediately after the 1998 crisis, it reached 129 billion US dollars, which amounted to 146.4% of the country’s GDP. After this, starting in 2000, its rapid decline began, thanks to competent government policies and rising energy prices.
As of January 1, 2012, external public debt amounted to 35 billion 801.4 million dollars. USA, which is 10.4% less than at the beginning of last year. As of January 1, 2011, external public debt amounted to 39 billion 956.9 million US dollars.
The state of external public debt from 2000 to 2012 is presented in Table 1 (Appendix A).
But according to the federal law “On the federal budget for 2012 and for the planning period of 2013 and 2014,” the government will annually increase the amount of public debt to combat the budget deficit. Thus, by the end of 2012 it is planned to collect external loans of 7 billion US dollars, in 2013 they will increase to 8.3 billion US dollars, and in 2014 they will increase to 14.1 billion US dollars. According to the government, the growth of external debt will be within the “danger zone”, the debt burden should remain moderate and the borrowing policy reasonable, which will ultimately create conditions for growth in the private sector, ensure the investment attractiveness of the national economy, and preserve the country’s most important competitive advantages. However, the deputy chairman of the Public Council under the Ministry of Finance, Yevsey Gurvich, fears for the speed of growth of external debt. Especially if the level of budget deficit becomes chronic. “Then the debt problem will worsen,” says Gurvich. And this, according to him, will weaken macroeconomic stability, interest rates will begin to rise, debt servicing costs will increase, and economic growth will slow down. The main government budget expenditures for which loans are required are, according to Gurvich, related to the military weapons program, expenses for the Olympics in Sochi and the APEC summit in Vladivostok.
The dynamics of external debt growth from 2012 to 2014 is shown in Figure 1 (Appendix A)
Today, the external debt of the Russian Federation consists of:
debts to the Paris Club;
debts to countries that are not members of the Paris Club;
debts to the CMEA countries (Council for Mutual Economic Assistance);
debts of international financial organizations;
commercial debt of the USSR;
market loans (Eurobonds);
providing guarantees to the Russian Federation in foreign currency.
Part of Russia’s internal debt, issued in foreign currency bonds of the Ministry of Finance (OVVZ), also circulates on the world market. They are often included in the volume of Russia's external debt, especially in studies by foreign economists.
The structure of external debt as of January 1, 2012 is presented in Table 2 (Appendix B)
2.2 The current state of the internal debt of the Russian Federation
The rapid repayment of external public debt in recent years is directly related to the increase in internal debt. Since the main source of repayment of external loans is internal government borrowing. Internal loans are less dangerous for the country's economy than external ones, since there is no leakage of goods and services abroad when repaying the internal debt. Therefore, today the bulk of the public debt of the Russian Federation is made up of internal loans - 84% of the total debt. So, as of January 1, 2012, domestic public debt amounted to 4.19 trillion. rub. which is 8% of the country's GDP. As of January 1, 2011, this figure was equal to 2.94 trillion. rub. Thus, the volume of domestic public debt increased by 1.25 trillion over the year. rub., or by 42.5%. Of the total amount, debt in government securities amounted to 3.55 trillion rubles. (an increase of 44% over the year), the volume of government guarantees is 0.64 trillion rubles. (35% increase).
The state of domestic public debt in the period from 2000 to 2012 is shown in Table 3 (Appendix B)
Domestic debt has been growing rapidly for the third year in a row due to the budget deficit, which is covered mainly by domestic borrowings. In 2009 it increased by 40%, in 2010 - also by 40%, in 2011 - by 42.5%. As a result, over the past three years, the total amount of domestic debt has almost tripled - from 1.5 trillion. rub. at the beginning of 2009 to 4.19 trillion. rub. at the beginning of 2012.
The Government of the Russian Federation has developed a new policy in the field of internal public debt for 2012-2014, aimed at:
ensuring a balanced federal budget while maintaining the high degree of debt sustainability achieved in recent years;
development of the national government securities market;
active use of the instrument for issuing state guarantees of the Russian Federation.
The key objectives in the field of government domestic borrowing will be to increase the liquidity of the market part of government domestic debt expressed in government securities and maintain profitability in the government securities market. The program of government domestic borrowings of the Russian Federation for 2012 -2014 was developed taking into account the possible demand for government securities from various categories of investors and provides for a significant positive balance of borrowings in the domestic market.
According to the federal law “On the federal budget for 2012 and for the planning period of 2013 and 2014,” domestic debt will continue to grow and by the end of 2014 it will increase 2.2 times. By the end of 2012 it should amount to 6.33 trillion. rubles, in 2013 7.87 trillion. rub., 2014 9.22 trillion. rub. which amounts to 14.5% of the country's GDP. The constantly growing domestic debt puts significant pressure on the Russian stock market, reducing the investment attractiveness of the country. However, if energy prices rise, borrowing plans may be reduced. This happened in 2011, during a budget surplus, the Ministry of Finance borrowed 300 billion rubles. less than expected.
The dynamics of growth of domestic public debt from 2012 to 2014 is presented in Figure 2 (Appendix B).
The current internal debt of the Russian Federation consists of:
government savings bonds with a fixed interest rate (GSO-FPS);
government savings bonds with constant interest rate (GSO-PPS);
federal loan bonds with debt amortization (OFZ-AD);
federal loan bonds with constant income (OFZ-PD);
bonds of domestic bonded loans of the Russian Federation (OVOZ);
provision of guarantees of the Russian Federation in Russian currency.
The structure of domestic debt as of January 1, 2012 is presented in Table 4 (Appendix B).
3 The impact of the public debt of the Russian Federation on the national economy
Significant amounts of public debt have a significant impact on the country's economy. Among the problems of modern budget policy, the problem of public debt occupies a special place. It is one of the main problems of the Russian economy, having a direct impact both on the rate of economic growth of the country as a whole, and on the directions of financial and budget policy.
The impact of large public debt on the state of the economy is characterized by the following results:
interest payments on public debt require corresponding budget expenditures and cannot be reduced. The high level of such expenses affects the limitation of financing of other items of expenditure, primarily social ones;
Tax rates are raised to service the public debt. Only when the amount of taxes collected exceeds 20% of GDP is the government able to service its debts. This indicator coincides with the share of tax revenues in Russian gross income;
There is an increase in interest rates in the country. The state, forced to refinance a significant amount of debt, acts as a large borrower in the financial market, creating competition between issuers, which leads to an increase in interest rates on the loan;
it is possible to shift the debt burden onto future generations. It is very important for what purposes government loans were used. If they were spent on current consumption, instead of going on investments and modernization of production, the income from which would make it possible to pay off debts in the future, then the increase in debt and interest on it will lead to a decrease in growth rates and limit consumption in the future. In other words, if an increase in public debt is not accompanied by a corresponding increase in investment, then this leads to the fact that debt payments are shifted to the next generation, reducing the consumption of future taxpayers;
repayment of external debt leads to a drain of financial resources from the country, which reduces consumption and investment in the national economy;
income inequality is created, since the largest part of government obligations is concentrated among the wealthiest part of the population. As a result, the repayment of internal debt leads to the fact that funds received from the least protected segments of the population are transferred to the more affluent. As a result, whoever owns the bonds becomes even richer.
Russia's modern solvency reserves include: a positive balance of the current balance of payments, foreign investments, gold and foreign exchange reserves and debts of foreign countries to our country. There has been no improvement in virtually any of these positions over the past few years. Investments are growing, but extremely slowly. Debts are returned to us reluctantly (15-20% of what was planned). Russia's solvency, at least in the medium term, can only be ensured through the federal budget, which will remain the only available source of funds for repaying and servicing the debt.
Today, Russia's total debt is 178.8 billion US dollars, of which 16% are external loans, and 84% are internal. This predominance of internal debt over external debt is a consequence of deliberate government policy. Since domestic debt is a relationship between citizens of a given country, there is no direct loss of goods and services when it is repaid. External debt is repaid by selling goods to other countries. In order to pay off its external debt, a country must reduce imports and increase exports of goods, while the proceeds from exports are used not for development purposes, but for debt repayment, which slows down the rate of growth and thereby reduces living standards. And as long as external debt continues to exist in Russia, our economy will not be able to fully develop due to constant leaks of funds abroad.
Conclusion
Currently, budget deficits have become a common occurrence for the state budget of most countries. Recently, the federal budget of the Russian Federation has also become deficit. The budget deficit may be a consequence of unfavorable economic conditions or the result of a deliberately pursued budget policy.
There are various ways to finance a budget deficit. If it is carried out through the issue of money, then this leads to an increase in the amount of money in circulation, rising prices and inflation. Covering the deficit by borrowing from the private sector leads to a reduction in private investment through the issuance of government securities.
The budget deficit is inextricably linked with the concept of public debt, which, depending on the sources of the loan, can be internal and external. Significant government debt negatively affects the economy: it leads to increased stratification of society, negatively affects the rate of economic growth, and the costs of servicing government debt increase the budget deficit. External public debt is repaid using export earnings, which can also negatively affect the pace of economic development.
The most important legislatively established measures for managing public debt include establishing maximum volumes of public internal and external debt, limits on external borrowing; sources of internal financing of the budget deficit, including proceeds from the issue of government securities; maximum amount of external borrowings; expenses for servicing government internal and external debt; upper limits of state internal and external guarantees.
The current economic state of the Russian Federation is characterized by a deficit budget. The main share of sources of financing the budget deficit comes from domestic financing. As a result, the Reserve Fund, which is used as one of the main sources of financing the federal budget deficit, is greatly depleted.
In addition, the amount of public debt, both internal and external, is constantly increasing. In the future, a further increase in debt, especially domestic debt, is expected.
Based on all this, we can conclude that these phenomena have an adverse impact on the development of the country as a whole. Therefore, the government needs to develop and implement special programs both to reduce the budget deficit and to reduce internal and external debt. Only taking effective measures in these directions will contribute to the socio-economic development of Russia.
List of used literature
1. Budget Code of the Russian Federation dated July 31, 1998 No. 145-FZ (as amended on June 27, 2011).
Federal Law “On the Federal Budget for 2012 and for the planning period of 2013 and 2014” dated November 30. 2011 No. 371 -FZ.
Anisimov A.S. Russian government debt. M.: Economics, 2000. 350 p.
Alekhin B.I. Government debt. M.: Unity-Dana, 2007. 336 p.
Borisov S. M. External debts of Russia. Money and Credit, 2010. No. 2. 24 - 29 p.
Babich A.M., Pavlova L.N. State and municipal finance: Textbook for universities. M.: UNITY, 2002. 687 p.
Braginskaya L.S. Government debt. Analysis of the management system and assessment of its effectiveness. M.: University Book, 2007. 10-55 p.
Vavilov Yu.Ya. National debt: A textbook for universities. Ed. 3rd, revised and additional M.: Perspective, 2008. 256 p.
Voronin Yu., Kabashkin, V. Public debt management. Economist. 2006. - No. 1. pp. 58 - 67.
Vorozhtsov P. O. On the principles of Russian policy in the field of public debt management Securities market. - 2005. - No. 18.
Danilov Yu.A. Government debt markets: global trends and Russian practice. M.: MAKS Press, 2008. 432 p.
Dadashev A.Z., Chernik D.G. Financial system of Russia: Textbook. allowance. M.: INFRA-M, 2006. 248 p.
Kozikova E.N. State external debt. Functioning in the economy of the borrowing country. M.: MAKS Press, 2004. 210 p.
Matskulyak I.D. State and municipal finances. M.RAGS, 2007. 640 p.
Shabalin A. Dynamics of state and corporate debt. The Economist, 2010. No. 3. 50-57s.
16.<#"justify">Appendix A

11. Public debt of the Russian Federation, costs of servicing the public debt of the Russian Federation

· The volume of public debt from the beginning of 2009 to the end of 2011 will increase by 1.7 times due to the growth of internal debt, the volume of which will increase by 2 times.

· With an increase in the volume of government borrowing, federal budget expenditures on servicing public debt in 2011 are increasing by 1.7 times compared to 2008 and will amount to 308.1 billion rubles.

· An increase in interest expenses increases the non-oil and gas deficit of the federal budget, which necessitates an increase in the size of the oil and gas transfer.

11.1. According to the bill, the indicators of the public debt of the Russian Federation (hereinafter - public debt) and their dynamics in 2009 - 2011 correspond to the Main directions of budget and tax policy for 2009 and for the planning period of 2010 and 2011, providing for a reduction in the relative size of public external debt, the development of national the government securities market, ensuring a balanced federal budget while maintaining the achieved debt sustainability.

The dynamics of the public debt of the Russian Federation in 2008–2011 are presented in the following table.


	fact. executive 2007	deviation	deviation	Growth from 2011 to 2009, %
Government debt of the Russian Federation, billion rubles.

State internal debt, billion rubles.

State external debt, billion rubles.

An analysis of the dynamics shows that the volume of public debt will tend to grow and will increase from the beginning of 2009 to the end of 2011 from 2,801.4 billion rubles to 4,848.4 billion rubles, or by 2,047 billion rubles (in 1 .7 times), relative to GDP will increase from 6.4% in 2009 to 7.2% at the end of 2011.

The indicators of the volume of public debt for 2009 and 2010, presented in the materials for the bill, are less than similar previously predicted indicators, which indicates a less significant increase in domestic debt than predicted.

The dynamics of the volume and structure of public debt of the Russian Federation in 2008 – 2011 are presented in the following diagram.

In the structure of public debt, the share of domestic debt will increase from 64.4% in 2009 to 76.4% in 2011, which corresponds to the main directions of budget and tax policy, aimed, among other things, at developing the government securities market and ensuring a balanced federal budget

11.2. Expenses for servicing public debt (interest expenses) in accordance with the bill will tend to grow and will increase in 2011 compared to 2008 by 128.25 billion rubles, or 1.7 times, compared to 2009 will increase by 1.6 times, and will amount to 308.1 billion rubles. The share of interest expenses in total expenses will increase from 2.2% in 2009 to 2.7% in 2011; relative to GDP, interest expenses will increase from 0.4% in 2009 to 0.5% in 2011.

An increase in interest expenses, in turn, increases the non-oil and gas deficit of the federal budget, which necessitates an increase in the size of the oil and gas transfer.

The increase in interest expenses will be due to the increase in expenses for servicing domestic public debt.

The dynamics of expenses for servicing the public debt of the Russian Federation in 2008 – 2011 are presented in the following diagram.

Enlarge image

11.3. The upper limit of the state internal debt of the Russian Federation as of January 1, 2010 is set in the bill in the amount of 2,119.7 billion rubles, or 4.1% of GDP, will increase in the planning period and at the beginning of 2012 will amount to 3,703.2 billion . rubles, or 5.5% of GDP, which will exceed the figure at the beginning of 2008 by 2.8 times, at the beginning of 2009 – by 2 times.

In the structure of government internal debt, the share of government securities increases from 92% to 95%.

The volume of government internal debt, expressed in government securities, according to the bill, will amount to 1,950.3 billion rubles as of January 1, 2010, which is more by 269 billion rubles, or 16%, than the figure at the beginning of 2009 (1,681.3 billion rubles), given in the materials to Federal Law No. 198-FZ of July 24, 2007 (when amendments were made to Federal Law No. 198-FZ, the debt structure was not presented).

During 2010 - 2011, this debt will increase 1.8 times and by the end of 2011 will amount to 3,518.4 billion rubles, or 95% of the domestic debt.

The dynamics of the structure of government internal debt is presented in the following diagram.

Enlarge image

In accordance with the main directions of budget and tax policy for 2009 and for the planning period of 2010 and 2011, government securities are planned to be placed at par in the following volumes: in 2009 - OFZ in the amount of 410 billion rubles and GSO - 125.8 billion. rubles; in 2020 - OFZ - 629 billion rubles and GSO - 199.1 billion rubles, in 2011 - OFZ - 823 billion rubles, GSO - 225.6 billion rubles.

As a result of such placement, the share of market debt will change due to an increase in the volume of placement of GSO (the volume of placement in 2011 is 1.8 times more than in 2009), which are non-marketable securities, since almost the entire volume of GSO is intended for the placement of pension savings.

11.4. Expenses for servicing the state internal debt (given in the explanatory note to the bill) in 2009 - 2011 will tend to increase, amounting to 129.3 billion rubles in 2009, increasing by 1.85 times and reaching 239.4 billion rubles in 2011, relative to GDP from 0.3% to 0.4%.

The dynamics of the volume of public internal debt and the costs of servicing it are shown in the following diagram.

Enlarge image

The share of expenses for servicing public internal debt in total interest expenses will increase from 65.3% to 77.7%.

11.5. The upper limit of the state external debt of the Russian Federation as of January 1, 2010 is set in the bill in the amount of 41.4 billion US dollars, or 27.8 billion euros (2% of GDP), in the planning period it will be reduced and will be at the beginning of 2012 40.9 billion US dollars, or 29.2 billion euros (1.7% of GDP).

The absolute size of government external debt in ruble equivalent will increase mainly due to changes in the ratio of the ruble to the US dollar and will amount to 997.2 billion rubles at the beginning of 2009, and 1,145.2 billion rubles at the beginning of 2012, that is, an increase of 148 billion rubles, or 14.8%.

In connection with the reduction of government external borrowings, the structure of government external debt will undergo changes, the share of government securities denominated in foreign currency and government guarantees will increase, and the share of debt on loans from foreign governments and microfinance organizations will decrease

The dynamics of the structure of government external debt is presented in the following diagram.

Enlarge image

11.6. Expenses for servicing the state external debt (presented in the explanatory note to the bill) are provided for by the bill in 2009 in the amount of 68.7 billion rubles (2.78 billion US dollars), or 0.1% of GDP, in 2010 they will increase slightly by 0.7% and will amount to 69.2 billion rubles (2.66 billion US dollars), in 2011 it will decrease to 68.7 billion rubles (2.5 billion US dollars).

In 2009 - 2011, the share of expenses for servicing public external debt in the total volume of interest expenses will decrease from 34.7% in 2009 to 22.3% in 2011; relative to GDP, these expenses will be at the level of 0.1% of GDP.

Interest payments on loans received by the Russian Federation from foreign governments in 2009 will amount to 3.7 billion rubles (150.5 million US dollars), which is 1.4 billion rubles, or 27%, less than in 2008 (5.1 billion rubles). In 2010–2011, these expenses will decrease and amount to 3.8 billion rubles (147.3 million US dollars) and 3.6 billion rubles (132.2 million US dollars), respectively.

Interest payments on MFO loans in 2009 will amount to 6.3 billion rubles (256.5 million US dollars), which is 1.8 times less than in 2008 (11.4 billion rubles). In 2010, these payments will increase by 9.5% and amount to 6.9 billion rubles (266.3 million US dollars), in 2011 they will decrease by 6.5% and amount to 6.45 billion rubles (236.2 million US dollars).

Interest payments on government securities denominated in foreign currency will amount to 58.6 billion rubles (2.37 billion US dollars) in 2009, which is 9.6% less than in 2008, and in 2010 will decrease by 0.2% and will amount to 58.5 billion rubles (2.2 billion US dollars), in 2011 they will amount to 58.6 billion rubles (2.15 billion US dollars).

The projected Libor rates used in the calculations of interest expenses of the federal budget for 2009–2011 are lower than the rates applied in the calculations of the federal budget for 2008–2010, and are one of the main factors in reducing the cost of servicing public external debt. In 2009, the difference in rates was 3.12% (rate reduction level - 40%), in 2010 - 2.918% (rate reduction level - 33%). The difference in the Ewribor rate in 2009 was 0.583% (rate reduction level - 9%), in 2010 - 1.083% (rate reduction level - 14%).

In accordance with the Procedure for planning budgetary allocations of the federal budget for 2009 and for the planning period of 2010 and 2011, approved by order of the Ministry of Finance of Russia dated April 17, 2008 No. 47n, the formation of the volume of budgetary allocations for servicing the public debt of the Russian Federation is carried out using a planned method in accordance with federal laws and regulations, as well as in accordance with treaties (agreements) defining the conditions for attracting and circulating government debt obligations of the Russian Federation. At the same time, departmental methodological documents of the Russian Ministry of Finance do not provide for the reflection of the specifics of calculating individual elements of general indicators for the public debt of the Russian Federation, which are not contained in contracts and agreements, which makes it difficult to assess the reliability of calculations.

In particular, in 2009 - 2011, repayment and servicing of more than 70% of public external debt will be carried out according to “conditional” schedules and in the form of conversion operations (debt in exchange for goods). The “conditional” schedules lead to different estimates of interest expense. For this reason, in particular, the accrual of interest on debt to South Korea in 2009 is provided for in the calculations of the Russian Ministry of Finance in the amount of 64.3 million US dollars, and in the calculations of the Accounts Chamber - 40.7 million US dollars, i.e. the difference will be 23.6 million US dollars.

11.7. The consolidated external debt of the Russian Federation (including external debt of the public sector, taking into account corporate debt and external debt of the private sector), according to the Bank of Russia, in 2007 increased by 152.9 billion US dollars, or by 49.2%, and by 1 January 2008 amounted to 463.5 billion US dollars, or 35.9% of GDP; in the first quarter of 2008, it increased by 13.6 billion US dollars and amounted to 477.1 billion US dollars as of April 1, 2008, or 28 % of GDP (as of April 1, 2008). At the same time, the volumes of international reserves of the Russian Federation are comparable to the volume of consolidated external debt, so as of January 1, 2008 they amounted to 477.89 billion US dollars, as of April 1, 2008 - 511.8 billion US dollars.

Enlarge image

The external debt of the private sector and banks is growing at a faster rate (in 2006 - 163.7%, in 2007 - 157%).

Relative to GDP, the volume of the country's consolidated external debt is at an acceptable level in accordance with accepted international standards (limit value - 60%) and amounted to 35.9% of GDP as of January 1, 2008.

The ratio of the volume of consolidated external debt as of January 1, 2008 to the volume of exports of goods and services for 2007 is 117.5%, which is an acceptable level.

The continuation of this trend increases the dependence of the economy of the domestic banking and corporate sectors of the country on external conditions and creates conditions for increasing the vulnerability of the country's economic and financial situation.

According to the Accounts Chamber, taking into account the risks existing in global financial markets, the Government of the Russian Federation needs to take measures to prevent the build-up of the consolidated external debt of the Russian Federation, develop mechanisms for internal lending to economic sectors and replace external borrowings with internal ones.

Servicing of the state internal debt of the Russian Federation is carried out by the Bank of Russia and its institutions through operations for the placement of debt obligations of the Russian Federation, their repayment and the payment of income in the form of interest on them or in another form.
The performance by the Bank of Russia of the functions of the general agent of the Government of the Russian Federation for the placement of debt obligations, their repayment and the payment of income in the form of interest on them is carried out on the basis of special agreements concluded with the federal executive body authorized by the Government of the Russian Federation to perform the functions of an issuer of government securities.
The Bank of Russia performs the functions of a general agent for servicing government internal debt free of charge.
Payment for the services of agents for placement and servicing of public debt is carried out at the expense of federal budget funds allocated for servicing public debt.
Servicing of the state internal debt of a constituent entity of the Russian Federation and municipal debt is carried out in accordance with federal laws, laws of a constituent entity of the Russian Federation and legal acts of local governments.
Information on debt obligations is entered by authorized bodies into the State Debt Book of the Russian Federation, the state debt book of a constituent entity of the Russian Federation or the municipal debt book within a period not exceeding 3 days from the moment the obligation arises.
Information entered into the municipal debt book is subject to mandatory transfer to the body maintaining the state debt book of the corresponding subject of the Russian Federation, then this information is transferred to the body maintaining the State Debt Book of the Russian Federation in the manner and within the time limits established by this body. The State Debt Book of the Russian Federation contains information about the volume of debt obligations of the Russian Federation, the date of occurrence of obligations, forms of securing obligations, the fulfillment of these obligations in whole or in part, and other information.
The state debt book of a constituent entity of the Russian Federation includes information on the volume of debt obligations of a constituent entity of the Russian Federation for all state borrowings of a constituent entity of the Russian Federation, the date of borrowing, forms of securing obligations, the fulfillment of these obligations in whole or in part, as well as other information, the composition of which is established by the executive authority of the constituent entity RF.
The municipal debt book contains information about the volume of debt obligations of municipalities, the date of borrowing, forms of securing obligations, the fulfillment of these obligations in whole or in part, as well as other information, the composition of which is established by the representative body of local government.

DEBT SERVICE

(debt service) Payments made in accordance with a debt contract. Debt servicing includes timely payment of interest and principal payments. If the debt is long-term, its servicing largely consists of interest payments. With short-term debt, the vast majority of debt service payments are principal payments. If an individual, firm or country has difficulty servicing its debt, the more short-term its debts are, the worse its problem. Thus, debt servicing problems can be significantly alleviated if creditors agree to convert short-term debts into long-term ones.

Economy. Explanatory dictionary. - M.: "INFRA-M", Publishing House "Ves Mir". J. Black. General editor: Doctor of Economics Osadchaya I.M.. 2000 .

Economic dictionary. 2000 .

See what “DEBT SERVICE” is in other dictionaries:

Debt service payments to repay a loan, usually monthly Service of government debt Debt service ratio ... Wikipedia

Payment of principal and interest to the creditor by the debtor in accordance with the terms of the loan. Dictionary of business terms. Akademik.ru. 2001 ... Dictionary of business terms

Payment of interest plus return to creditors of the principal part of the debt, that is, repayment of debt for a certain reporting period.. Terminological dictionary of banking and financial terms. 2011… Financial Dictionary

Debt servicing- (debt service, debt servicing) the process of payments by the borrower to repay the principal debt and interest on it ... Economic and mathematical dictionary

debt service- The process of a borrower making payments of principal and interest. Topics: economics EN debt servicedebt servicing… Technical Translator's Guide

DEBT SERVICE- payment of principal and interest on it. The part of the proceeds from the export of goods and services, expressed as a percentage, allocated for servicing external debt is called the O.d. norm. Increasing the norm of O.d. indicates deterioration... Foreign economic explanatory dictionary

DEBT SERVICE Great Accounting Dictionary

DEBT SERVICE- timely, in accordance with the agreed schedule, repayment by the debtor of the principal debt and interest to the creditor... Large economic dictionary

Debt servicing- DEBT SERVICING. Regular payments to repay the principal debt, payment of accrued interest and administrative fees... Dictionary-reference book on economics

Debt servicing- Payment of interest plus return to creditors of the principal part of the debt, that is, repayment of debt... Investment Dictionary

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Organization of the activities of the central bank, Akopov V.S.. The textbook covers key issues of the structure of the organization of activities and functions of central banks. A theoretical justification is given for the functions performed by central banks and...

11. Public debt of the Russian Federation, costs of servicing the public debt of the Russian Federation

Main conclusions of the subsection

· Volume government debt of the Russian Federation(hereinafter referred to as public debt) in 2012 will be 13,2 % GDP will increase in the planning period and at the end of 2014 will be 15.7% of GDP.

· The increase in public debt will occur mainly due to the growth of public internal debt from 6,330.9 billion rubles (10.8% of GDP) in 2012 to 9,221.8 billion rubles (12.7% of GDP) in 2014, the volume of which will exceed the legally approved figure for 2011 (4,732.3 billion rubles) in 1.9 times.

· State domestic debt under government guarantees in 2014 will increase compared to 2011 in 2 times and will amount to 1.9 trillion rubles; state external debt under government guarantees - V 3.4 times and will amount to US$18.5 billion(581.5 billion rubles).

· Public debt servicing costs will increase from 350.7 billion rubles (0.7% of GDP) in 2011 to 579.2 billion rubles (0.8% of GDP) in 2014, or 1.7 times. The volume of these expenses will significantly exceed the budget allocations allocated in 2014 for housing and communal services, environmental protection, culture, cinematography, physical culture and sports, the media in general (273.3 billion rubles), education (499.5 billion rubles), healthcare (461.8 billion rubles), interbudgetary transfers (494.7 billion rubles)

· The volume of total external debt of the Russian Federation as of July 1, 2011 amounted to 538.6 billion US dollars (28.3% of GDP), and exceeded by 14.1 billion US dollars the volume of international reserves of the Russian Federation.

· The values of the external indicator amounted to 28% according to the Bank of Russia in the first quarter of 2011, What 3 percentage points higher, than the threshold value (25 %)

11.1. In accordance with the Main Directions of the Debt Policy of the Russian Federation for 2012–2014, reviewed by the Government of the Russian Federation on August 11, 2011 (hereinafter referred to as the debt policy for 2012–2014), state policy in the field of public debt of the Russian Federation will be aimed at ensuring financing of the federal deficit budget by attracting resources on the Russian and international capital markets on favorable terms, developing the national market for government securities, creating conditions for corporate borrowing.

In 2012–2014, it is planned to attract significant borrowings from the domestic financial market.

For 2012–2014, the total attraction funds from the placement of government securities of the Russian Federation denominated in the currency of the Russian Federation, in the amount 5,492.9 billion rubles.

The government debt of the Russian Federation will increase from 7,743.0 billion rubles (13.2% of GDP) in 2012 to 11,388.9 billion rubles (15.7% of GDP) in 2014. At the same time share of government internal debt in the total volume of public debt in 2012–2014 will be 81,8 %, 81,8 %, 81 % respectively, share of public external debt will increase from 18,2 % in 2012 to 19 % in 2014.

The dynamics of the volume and structure of public debt of the Russian Federation in 2009 – 2014 (at the end of the year) are presented in the following table.

(billion rubles)

	2009 report	2010 report	2011 estimate	2012 project	2013 project	2014 project
Government debt of the Russian Federation						11 388,9

% to previous year
% compared to 2011
including:
Government internal debt

% to previous year
% compared to 2011
*Government external debt)**

% to previous year
% compared to 2011

*) calculation at the US dollar exchange rate as of December of the corresponding year

An analysis of the dynamics of the volume and structure of public debt shows that volume of public debt will increase in 2012–2014 by almost 2 times. The increase in public debt will occur mainly due to growth of government internal debt, the volume of which will increase 2 times in 2014 compared to 2011, or with 8.5% of GDP to 12.7% of GDP.

The dynamics of the volume and structure of public debt of the Russian Federation in 2008 – 2014 are presented in the following diagram.

Increased volumes of borrowing and, accordingly, an increase in the volume of public debt in the planning period will increase the burden on the federal budget, however, according to most indicators calculated in accordance with international methods, fiscal stability will remain.

The main indicators used in world practice characterizing the degree of debt sustainability, in relation to the Russian Federation in 2009–2014, are given in the following table.

Indicator name	Criterion (indicative values)	Threshold value (budget position)
Government debt of the Russian Federation, % of GDP
Share of public internal debt in the total volume of public debt of the Russian Federation, %
Share of expenditures on servicing public debt in total federal budget expenditures, %
Ratio of the annual amount of payments for repayment and servicing of public debt to federal budget revenues, %
Ratio of public debt of the Russian Federation to federal budget revenues, %
Ratio of the state external debt of the Russian Federation to the annual volume of exports of goods and services, %
Ratio of the annual amount of payments for repayment and servicing of public external debt to the annual volume of exports of goods and services, %

In the debt policy for 2012–2014, to assess the debt sustainability of the Russian Federation from the point of view of the budgetary position, lower threshold values are proposed for a number of indicators than is accepted in world practice.

Thus, according to the indicator characterizing the ratio of the public debt of the Russian Federation to federal budget revenues, the threshold value is 100%, while the indicated indicator in 2012 will be 65.7%, in 2013 - 75.7%, in 2014 - 80, 8%. If the growth trend of this indicator continues, it is possible that the threshold value will be reached outside the 2012–2014 budget cycle, which indicates a possible risk of insufficient federal budget revenues to repay the public debt of the Russian Federation.

In connection with the increase in budgetary allocations of the federal budget for the fulfillment of expenditure obligations for servicing and repaying debt in 2012 - 2014, the ratio of the annual amount of payments for repayment and servicing of public debt to federal budget revenues will exceed the limit value (10%) by 0.5, 0.3 and 2.3 percentage points respectively.

In accordance with the debt policy for 2012–2014, maintaining a moderate debt burden is a strategic objective. According to the Accounts Chamber, it is advisable to develop a debt risk management system to ensure long-term debt sustainability.

11.2. government domestic debt ceiling of the Russian Federation (hereinafter referred to as internal debt) as of January 1, 2013 is provided in the amount 6,330.9 billion rubles, which is 1,775.9 billion rubles, or 39%, higher than as of January 1, 2012 (estimate – 4,555.0 billion rubles). For 2012 - 2014 internal public debt will increase 2 times.

The dynamics of the volume and structure of public internal debt (at the end of the year) are presented in the following table.

						2014 to 2011
billion rubles	structure, %	billion rubles	structure, %	billion rubles	structure, %	billion rubles	structure, %	billion rubles	structure, %
Government internal debt, total
including:

state guarantees
other debt

An analysis of the dynamics of the volume and structure of public internal debt shows that the growth of public internal debt is mainly due to an increase in debt government securities, the nominal value of which is indicated in the currency of the Russian Federation. Share the said debt will increase from 78.5% in 2012 to 79,4 % in 2014.

The volume of domestic debt expressed in government securities in 2012 will be 4,967.6 billion rubles, which is 35.9% more than in 2011. During 2012–2014, this debt will double and by the end of 2014 it will be 7,320.8 billion rubles.

In accordance with the Main Directions of the Debt Policy of the Russian Federation for 2012–2014, in addition to the issue of OFZ and GSO, it is planned to issue Eurobonds in rubles.

The bill provides for an increase in the state internal debt under state guarantees by more than 2 times in 2012–2014, its share in the total volume of public internal debt will be 21,4 %, 21,4 %, 20,6 % respectively.

In accordance with paragraph 4 of Article 15 of the bill, the upper limits of the state internal debt of the Russian Federation under state guarantees of the Russian Federation are established: as of January 1, 2013 - 1,356.0 billion rubles, as of January 1, 2014 – 1,684.4 billion rubles, as of January 1, 2015 – 1,901.0 billion rubles. This growth is due to the active use of the mechanism of state support for the Russian economy in the form of state guarantees.

The draft programs for the provision of state guarantees of the Russian Federation in the currency of the Russian Federation for 2012 and for the planning period of 2013 and 2014 provide for the provision of guarantees totaling 1,139.3 billion rubles, including: in 2012 - 589.5 billion rubles, in 2013 - 331.5 billion rubles, in 2014 – 218.3 billion rubles.

In 2012 - 2014, it is planned to provide the specified state guarantees of the Russian Federation: for insurance obligations of military risks, risks of hijacking and other similar risks of liability of air carriers to third parties; on the obligations of organizations of the military-industrial complex for the implementation of the state defense order; “mortgage” state guarantees of the Russian Federation (); guarantees for bonded loans and legal entities selected in the manner established by the Government of the Russian Federation for the implementation of investment projects; under the guarantees of GC Olimpstroy; for loans raised for the construction of a main oil pipeline.

It should be noted that the actual implementation of the program of state guarantees of the Russian Federation in the currency of the Russian Federation amounted to 39.5% in 2009, and 55.6% in 2010. In the first half of 2011, these guarantees were not provided.

The volume of guarantees provided forms the contingent liabilities of the state, which are included in the total volume of public debt of the Russian Federation. In this regard, the Main Directions of the Debt Policy of the Russian Federation for 2011–2013 determined that, along with the provision of free state guarantees, the establishment of paid state guarantee support is justified. It is possible to provide guarantees to cover the share of risks in the conditions of sharing the risks of the state with private capital. In the Main Directions of the Debt Policy of the Russian Federation for 2012 - 2014, these approaches were not developed. However, it was noted that “intensive methods of applying state guarantees have exhausted themselves, and the debt accumulated under them requires the use of improved approaches to providing state guarantee support.”

The Accounts Chamber supports the need to improve methods of providing state support in the form of providing state guarantees in the currency of the Russian Federation and foreign currency for projects implemented on the principle of “public-private partnership”, and considers it appropriate to introduce methods based on risk assessment.

11.3. In accordance with Article 1 of the bill ceiling on public external debt of the Russian Federation (hereinafter referred to as external debt) as of January 1, 2013 is provided in the amount 48,4 billion US dollars, or 34.6 billion euros, which is 8.0 billion US dollars, or 19.8%, more than as of January 1, 2012 (estimated 40.4 billion US dollars).

The dynamics of the volume and structure of external debt (at the end of the year) are presented in the following table.

	2010 report	2011 estimate	2012 project	2013 project	2014 project
billion US dollars	structure,%	billion US dollars	structure,%	billion US dollars	structure, %	billion US dollars	structure, %	billion US dollars	structure, %
Government external debt, total
including:
loans from foreign states, loans from microfinance organizations, other subjects of international law, foreign legal entities in foreign currency
government securities of the Russian Federation denominated in foreign currency
guarantees of the Russian Federation in foreign currency

An analysis of the dynamics of the volume and structure of public external debt shows that the volume of public external debt in dollar equivalent in 2012 - 2014 will increase compared to 2011 (expected performance) in 1.7 times and will be as of January 1, 2015 US$69.0 billion.

The increase in external debt is due to borrowing on external financial markets through the placement of government securities (Eurobonds), as well as an increase in the volume of guarantees provided in foreign currency.

Share of debt on government securities, denominated in foreign currency, in the total volume of public external debt in 2012–2014 will decrease from 72,1 % to 67,3 %, or by 4.8 percentage points.

In 2012–2014, an increase in 3.4 times state external debt under state guarantees of the Russian Federation in foreign currency compared to 2011, which is associated with an increase in the volume of provision of these state guarantees within the framework of the state guarantee programs of the Russian Federation in foreign currency for 2012 - 2014.

Clause 6 of Article 16 of the bill establishes the upper limits of the state external debt of the Russian Federation under the specified guarantees: as of January 1, 2013 – 8.3 billion US dollars, as of January 1, 2014 – 14.1 billion US dollars, as of January 1, 2015 – US$18.5 billion. As of January 1, 2011, the debt amounted to $0.9 billion, or 7.8% of the approved limit.

Share debt under guarantees of the Russian Federation in foreign currency in total external debt will increase from 17.2% in 2012 to 26,8 % in 2014, or by 9.6 percentage points.

The draft programs of state guarantees of the Russian Federation in foreign currency for 2012 and for the planning period of 2013 and 2014 (Appendices 38 and 39 to the bill) provide for the provision of guarantees in the total amount US$14.9 billion: in 2012 – 4.5 billion US dollars, in 2013 – 5.8 billion US dollars and in 2014 – 4.6 billion US dollars, including:

to support the export of industrial products in 2012 and 2014, 3.0 billion US dollars each, in 2013 – 3.5 billion US dollars;

for the implementation of investment projects in 2012 and 2013, 1.0 billion US dollars annually, in 2014 no guarantees are provided;

for projects implemented with the participation of microfinance organizations, in 2012 - 0.5 billion US dollars, in 2013 - 1.3 billion US dollars, in 2014 - 1.6 billion US dollars.

At the same time, the actual provision of state guarantees to support the export of industrial products (goods, works, services) amounted to 14.1% in 2009, and 5% in 2010.

The bill provides for significant decline in 2012 – 2014 share of debt on loans from foreign governments and microfinance organizations: from 10.7% to 5.9%, or by 4.8 percentage points, which is due to the financing in 2012–2014 of joint projects with microfinance organizations on terms of co-financing from the federal budget.

In 2012 - 2014, the Government of the Russian Federation must repay the debt under intergovernmental agreements with Germany (final repayment period - 2013) and Turkey (2012). The calculation of debt on loans from foreign governments as of January 1, 2012, 2013 and 2014 fully takes into account the write-off of debt repaid in cash.

At the same time, the projected upper limits on the state external debt of the Russian Federation over the entire three-year period do not take into account the reduction in debt repaid in commodity form. The Ministry of Finance of Russia plans to write off debt after creditors confirm the facts of its write-off. Therefore, despite the planned financing of commodity supplies, which will make it possible to pay off individual intergovernmental agreements in years, debt is predicted to remain in a number of countries.

Currently, there is unsettled debt with Malta, Bosnia and Herzegovina, the Czech Republic, Romania, and the DPRK.

11.4. Federal budget expenditures on servicing public debt Russian Federation (interest expenses) for 2012 are provided in the amount 388.4 billion rubles, what's on 37.7 billion rubles, or 10.7% more than in 2011. In 2014, these expenses will be 579.2 billion rubles and will exceed the legally established figure for 2011 almost 1.7 times.

The dynamics of public debt servicing expenses (interest expenses) in 2009–2014 are shown in the following table.

(billion rubles)

	2009 report	2010 report	2011 Law (as amended)	2012 project	2013 project	2014 project
Interest expenses

% to previous year
% compared to 2011
share of interest expenses in federal budget expenses, %
domestic debt servicing costs
% to previous year
% compared to 2011
share in interest expenses, %

external debt servicing costs
% to previous year
% compared to 2011

share in interest expenses, %

An analysis of the dynamics of interest expenses shows that, compared with the previous year, federal budget expenses for servicing public debt in 2012 will increase by 10.7%, in 2013 - by 24.2%, in 2014 - by 20%.

The share of expenditures on servicing public debt in total federal budget expenditures will increase from 3.1% in 2012 to 4% in 2014, or by 0.9 percentage points.

The dynamics of expenses for servicing the public debt of the Russian Federation in absolute terms and as a percentage of GDP in 2009–2014 are shown in the following diagram.

For 2012–2014, the total volume of budgetary allocations allocated for servicing public debt will be 1,449.9 billion rubles.

The increase in interest expenses is primarily due to an increase in the volumes of government borrowings of the Russian Federation planned to finance the federal budget deficit in the domestic and foreign markets and a corresponding increase in the absolute size of the government debt of the Russian Federation.

Public debt servicing costs will increase from 350.7 billion rubles(0.7% of GDP) in 2011 to 579.2 billion rubles(0.8% of GDP) in 2014, or 1.7 times. The volume of these expenses will significantly exceed the budget allocations allocated in 2014 for housing and communal services, environmental protection, culture, cinematography, physical culture and sports, the media in general (273.3 billion rubles), education (499.5 billion rubles), healthcare (461.8 billion rubles), interbudgetary transfers (494.7 billion rubles)

11.4.1. In accordance with the bill, government spending on servicing state internal debt compared to 2011 in 2012 will increase by 42.8 billion rubles, or 15.8%, and amount to 314.1 billion rubles, in 2013 - by 124.5 billion rubles, or 45.9%, in 2014 compared to 2011 will increase 1.8 times and will amount to 479.4 billion rubles. The share of expenses for servicing public internal debt in total interest expenses will increase from 80,9 % in 2012 to 82,8 % in 2014.

The increase in expenses for servicing government internal debt is due tonot only by the increase in the volume of public internal debt in 2012 - 2014, butand an increase in the planned yield on government securities.

The calculation of expenses for servicing public internal debt in 2012 - 2014 was made based on the planned yield on short-term securities of 4.5% - 5.5%, medium-term - 6% - 7.5%, long-term - 7.5% - 8.5 %.

The main volume of budgetary allocations for servicing public domestic debt in 2012–2014 is provided for federal loan bonds with debt amortization (OFZ-AD) and federal loan bonds with constant coupon income (OFZ-PD). In 2012, 61.6 billion rubles were provided for servicing OFZ-AD, in 2013 - 58.2 billion rubles, in 2014 - 57.2 billion rubles, for servicing OFZ-PD - in 2012 - 200, 5 billion rubles, in 2013 – 281.5 billion rubles, in 2014 – 371.1 billion rubles.

The projected issue of government securities denominated in the currency of the Russian Federation in 2012 will amount to 1,843.7 billion rubles, in 2013 - 1,839.6 billion rubles, in 2014 - 1,919.4 billion rubles at par value .

11.4.2. According to the bill expenses for servicing government external debt in 2012 compared to 2011 will decrease by 5.1 billion rubles, or on 6,4 %, and will amount to 74.3 billion rubles, in 2014 - will increase by 1.3 times and will amount to 99.8 billion rubles.

The increase in these expenses is primarily due to an increase in borrowing volumes (issue and placement of Eurobonds of the Russian Federation on international financial markets) to 7.0 billion US dollars annually in 2012–2014. In addition, it is expected that floating interest rates on servicing loans from foreign countries and microfinance organizations will increase in 2012–2014 against the level of interest rates in effect on September 1, 2011: for the US dollar by 1.1 percentage points, 2.3 percentage points, 3 .5 percentage points respectively; for the euro by 1.4 percentage points, 2.0 percentage points, 2.4 percentage points, respectively.

Interest payments on government securities, the nominal value of which is expressed in foreign currency, in 2012 will amount to 71.7 billion rubles (2.5 billion US dollars), in 2013 - 83.3 billion rubles (2.8 billion . US dollars), in 2014 – 95.8 billion rubles (3.1 billion US dollars). These payments are calculated based on coupon income rates in 2012 – 6 %, in 2013 - 6,33 % and in 2014 - 6 % .

Interest payments on loans received by the Russian Federation from foreign governments and microfinance organizations will increase and will amount to 2.6 billion rubles (91.6 million US dollars) in 2012, 3.2 billion rubles (110. 1 million US dollars), 2014 – 4.0 billion rubles (130.5 million US dollars), respectively.

Expenses for servicing securities denominated in foreign currency account for more than 95% of the total interest expenses, which is reflected in the following table.

(billion rubles)

	2012 project	2013 project	2014 project
Interest expenses on servicing government external debt
including:
Securities denominated in foreign currency

Loans from foreign states, including targeted foreign loans (borrowings), microfinance organizations, other subjects of international law, foreign legal entities
share in interest expenses on external debt, %

The Accounts Chamber's calculations of the volume of expenses for servicing the state external debt of the Russian Federation, taking into account the information provided on the levels of interest rates, cross rates and other information, generally coincide with the indicators contained in the bill.

11.5. Total external debt of the Russian Federation(hereinafter referred to as total external debt), according to the Bank of Russia, as of July 1, 2011 amounted to 538.6 billion US dollars (28.3% of GDP).

The dynamics of total external debt in 2007–2011 are shown in the following table.

(billion US dollars)

	01.01.08	01.01.09	01.01. 10	01.01.11	04/01/11	07/01/11
Total external debt of the Russian Federation

Monetary authorities

Other sectors
For reference: international reserves of the Russian Federation

An analysis of the dynamics of total external debt shows that the total external debt of the Russian Federation increased for the first half of 2011 by 49.6 billion US dollars, or 10.2%, and amounted to 538.6 billion rubles.

At the same time external government debt increased in 2010 by 3.2 billion US dollars, or 10.2%, in the first half of 2011 - by 0.6 billion US dollars, or 1.7%, which is due to government external borrowings of the Russian Federation in external financial markets.

External debt of monetary authorities in 2010 decreased by 2.5 billion US dollars, or 17.1%, but in the first half of 2011 increased by 0.7 billion rubles, or 5.8%.

External debt of banks for 2010 increased by 17.0 billion US dollars, or 13.4%, for the first half of 2011 - by 14.8 billion US dollars, or 10.3%.

External debt non-financial sector of the economy(other sectors) increased in 2010 by 4.1 billion US dollars, or 1.4%, in the first half of 2011 - by 33.5 billion US dollars, or 11.2%.

Thus, growth of the total external debt of the Russian Federation in 2010 and the first half of 2011 mainly due to the growth of external debt of the banking and non-financial (other) sectors of the economy.

Volume of total external debt as of July 1, 2011 exceeded the volume of international reserves of the Russian Federation by 14.1 billion US dollars, or on 2,7 %, excluding the total amount of funds Reserve Fund and National Welfare Fund– on 133,3 billion US dollars, or on 32,9 %, respectively.

Total external debt relative to GDP in 2010 decreased by 3.1 percentage points, to 33% of GDP, for the first half of 2011 - by 4.7 percentage points, up to 28.3% of GDP.

External debt of the public sector in an expanded definition (includes external debt of corporations where the share of government and monetary authorities in capital is 50 percent or more) increased in 2010 by 18.3 billion US dollars, or by 10.1 %, for the first quarter of 2011 - by 4.0 billion US dollars, or 2%, the external debt of the private sector increased by 3.5 billion US dollars, or 1.2%, and by 16.6 billion. US dollars, or 5.7%, respectively.

About 60% of the total external debt is the external debt of the private sector.

The dynamics of total external debt by type of property is shown in the following diagram:

Significant borrowing by corporate structures with a large share of state participation in the authorized capital creates risks of corporate borrowing in the public and private sectors of the economy associated with the potential possibility of the state refinancing obligations on these borrowings, as was the case in 2009.

Currently, most debt indicators are in accordance with international standards. at an acceptable level.

The ratio of total external debt to GDP in 2010 was 33 % , in the first half of 2011 – decreased to 28,3 %, which is below the threshold suggested by the International Monetary Fund for analytical purposes (50%).

At the same time, despite the low level of this indicator, it is necessary to take into account the risks associated with the high degree of volatility of the national currency, due to the significant dependence of the Russian economy on foreign economic conditions, which, in the context of worsening crisis phenomena in the global economy, can lead to exceeding the threshold values of the ratio of the total volume external debt to GDP.

External indicator values debt sustainability “payments on total external debt to the volume of exports of goods and services” according to the Bank of Russia in the first quarter of 2011, amounted to 28%, What 3 percentage points higher, than the threshold value (25 %) , defined by the International Monetary Fund for analytical purposes.

The ratio of the volume of total external debt and exports of goods and services in 2010 was 110%, in the first quarter of 2011 - 109%, which is below the threshold value (150 - 200%).

According to the Accounts Chamber, in order to monitor the total external debt and assess possible risks associated with the growth of the total external debt, it is necessary to establish a mechanism for operational influence on the borrowing policy of the corporate sector, including the procedure for state corporations to make decisions on borrowing in foreign currency.

The Main Directions of the Debt Policy of the Russian Federation for 2012–2014 notes that “the burden of the debt burden falling on the corporate sector dictates the need for increased attention from financial authorities to the area of corporate borrowing.”

In order to improve the system for monitoring external borrowings of the corporate sector and create a mechanism for operational influence on the borrowing policy of Russian corporations with a large share of state participation, amendments were adopted to the Federal Law of January 12, 1996 No. 7-FZ “On Non-Profit Organizations”. In accordance with this law, decisions on borrowings made in foreign currency are made by state corporations in the manner established by the Government of the Russian Federation.

According to the Accounts Chamber, in order to monitor the total external debt and assess possible risks associated with the growth of this debt, it is necessary to establish a mechanism for operational influence on the borrowing policy of the corporate sector, including the procedure for state corporations to make decisions on borrowing in foreign currency.