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Methods of managing state and municipal debt. Ways and methods of public debt management Principles of public debt management of the Russian Federation

Exists a large number of methods of solving the problem of public debt. These include both budget-export and financial-technical ones. Budget-export methods are long-term and link the solution of the problem, for example, external debt, with an increase in the country's trade balance, as well as an increase in GDP and the state budget.

Technical methods are short-term, and allow solving the problem by improving the terms of borrowing, reducing the total amount of debt, changing the time structure of payments.

Rodionova V.M. identifies the following main financial and technical methods of public debt management: consolidation, conversion, exchange of bonds according to a regressive ratio, deferral of repayment and cancellation of loans.

A conversion is usually understood as a change in the yield of loans. In order to reduce the cost of public debt management, the state most often reduces the amount of interest paid on loans. However, an increase in the yield of government securities for creditors is not ruled out.

Unification of government loans is usually carried out together with consolidation. Unification of loans is the combination of several loans into one, when bonds of previously issued loans are exchanged for bonds of a new loan. In exceptional cases, the government may exchange bonds on a regressive basis, that is, equating several previously issued bonds to one new bond.

The deferment of the repayment of a loan or all previously issued loans is carried out in conditions where the further development of operations for the issuance of new loans is not financially effective for the state. Deferral not only delays the repayment of loans, but also stops the payment of income.

Under the cancellation of public debt is understood as a measure in which the state completely renounces obligations on issued loans. Cancellation of government securities can be carried out for two reasons: in the event of the financial insolvency of the state, i.e. his bankruptcy; due to the coming to power of new political forces, which, for certain reasons, refuse to recognize the financial obligations of the previous authorities.

In addition, debt refinancing is singled out as a method of attracting borrowings. Refinancing of public debt is the placement of new government loans to pay off debt already issued. For example, Russia used refinancing to pay off debt on the state 3% winning domestic loan of 1966. After the expiration of this loan, the bonds were exchanged within one year for bonds of a new loan - the winning domestic loan of 1982 without paying the exchange rate difference.

The minimum price of borrowed funds in the market is determined by the refinancing rate. The refinancing rate is the interest rate at which borrowing to service domestic debt occurs. Thus, the state credit regulates the market of interbank credits.

Currently, when developing options for optimizing Russia's external debt, attention is mainly focused on technical means of solving the problem: debt restructuring, the conversion of a part of debt obligations into property assets in Russia. Less traditional methods are also offered - payment of compensation, repayment of debt in national currency, re-registration of accounts payable for settlements of receivables.

Under debt restructuring, in accordance with Art. 105 of the Budget Code of the Russian Federation, is understood as "repayment of debt obligations with the simultaneous implementation of borrowings (assuming other debt obligations) in the volume of redeemable debt obligations with the establishment of other conditions for servicing debt obligations and their maturity." To a certain extent, this term is synonymous with loan consolidation.

The main restructuring schemes include: debt cancellation, that is, cancellation of previous loans; debt redemption; debt securitization.

Currently, the theoretical direction devoted to the problem of the "debt overhang" is actively developing, which consists in the fact that the number of obligations already taken by the state inspires creditors with concerns about the country's solvency.

The solvency of the borrowing country should be understood as the ability of the state to fulfill its debt obligations. But only at the expense of resources that make up part of the country's total income (potential transfer), which the government can attract for debt payments without significant damage to the state and citizens. The potential transfer is determined solely by the country's desire to service its own obligations, which depends on the costs of default and political considerations. At the same time, the debt overhang problem arises if the expected discounted flow of future transfers is less than the total debt of the country.

The presence of a "debt overhang" can negatively affect the motivation of the borrowing country to repay debts. In this case, partial debt relief appears to be a preferred strategy for lenders compared to providing additional loans in the hope of their future repayment.

Table 1.1.

External Debt Thresholds and Russia's Position

Currently, debt relief is practiced mainly in relation to the poorest countries with "critical" debt levels. The corresponding criteria are presented in Table 1.1. Debt cancellation is considered justified if three of the last four indicators exceed the critical level.

AT general case a country whose debts are written off automatically loses not only a significant part of its political independence, but also for a long time is deprived of access to the international capital market as an independent borrower. Since Russia is not one of the poorest countries, it is hardly worth hoping for debt relief from external creditors.

Some debtor countries have significant amounts of gold and foreign exchange reserves in their assets or can quickly increase them by stimulating export industries. At the same time, the debts of these states are traded at a large discount on the market, which indicates investors' fears about the solvency of borrowers. In such a situation, it would be possible to allow the borrower to independently redeem their own debts in the secondary securities market.

However, under standard loan conditions, the debtor is not entitled to early redemption of its debts for two reasons. Firstly, the principle of the primacy of creditors is violated, that is, their right to preferential receipt of any free funds of a debtor who is in arrears. Second, there are the phenomena of "moral hazard" and "reverse selection" when the worst borrowers, whose debts are traded at the largest discount, actually win.

If the buyout decision is made with the consent of creditors, then such problems can be resolved, for example, by setting maximum buyout volumes.

The mechanism of early redemption of sovereign debt is limited not only by the position of creditors, but also by the amount of foreign exchange reserves available to the country. This limitation can be overcome with the help of securitization, the basic idea of which is that the debtor country issues new debt in the form of bonds, which are either directly exchanged for old debt or sold. In the event of a sale, the funds received are used to buy back old obligations. Recently, securitization of bank debts, that is, the exchange of obligations to creditor banks for bonds, has become most widespread.

If the new securities are traded on the market at a smaller discount, such a transaction will reduce the total amount of debt.

Such a restructuring scheme can be implemented on a voluntary basis only if new obligations are recognized as priority in relation to old debts. Otherwise, the expected payments on the old debt are equivalent to payments on the new debt, which will trade at the same discount as the existing one. There is no reduction in the tax burden.

The main financial mechanism of the conversion scheme is the liquidation of a part of external debt claims by their exchange (swap) into national assets. The scheme is based on the principle of "unpaired exchange": the nominal debt is copied at a special redemption rate, which is guided by the secondary market quotes of the corresponding debt claims.

The advantage of large-scale conversion operations is that, along with debt relief, they can contribute to the inflow of foreign direct investment in the development of priority export and import-substituting industries, privatization, reform of the financial sector, as well as slow down the outflow of capital from the country and stimulate its return.

The following swaps are possible:

- “debt for cash”: repurchase of debt at a discount on non-guaranteed commercial debt;
- "debt for export": this scheme is more attractive, allows you to maintain competitive domestic production, helps to increase their exports to already traditional markets and the development of new markets;
- "debt for taxes": when implementing this scheme, it is necessary to establish legislative tax incentives for investors holding Russia's external debt, so that investors can pay tax by offsetting Russian external debt obligations in a proportion in which a large amount of tax would be repaid by a smaller amount of external debt obligations. Permission for such a conversion should only be granted for new investments in priority sectors of the economy;
- "debt into bonds": as an example, we can cite agreements on debt restructuring to the London Club of Creditors;
- “debt for property”: within the framework of privatization, the use of a scheme for exchanging debt obligations for shares of privatized enterprises. Such a swap makes it possible to solve two problems at the same time - to reduce the state debt and ensure the inflow of capital into the real sector of the economy.
- "debt for debt": a swap of external liabilities (for example, Soviet debts to the Paris Club) into financial assets (Russia's debts of third countries). We are talking about a kind of political offsetting, a concession of the right to claim.

The current model of borrowing by the Government of the Russian Federation in the financial market (both external and internal) is based on the rejection of such a method of public debt management as refinancing. The Government of the Russian Federation has so far refused to issue short-term government securities, since there is no certainty that the revenue part of the federal budget and the financial condition of the country will make it possible to pay off all current debt at any time.

Until 2003, the Russian government used purely inflationary methods to cover the state budget deficit and service the state debt by borrowing funds from the Central Bank. This was sharply opposed by the IMF, which played a major role in the transition to the use of non-emission methods of covering the deficit through internal and external loans.

The optimization of domestic debt can be carried out through either inflationary domestic financing and devaluation of the national currency, or debt restructuring.

When choosing in favor of inflation, additional budget expenditures arise to compensate salaries, pensions, benefits, higher energy prices, etc., as well as to service foreign exchange debt.

Domestic debt restructuring, especially if it is of a confiscatory nature, can have the following consequences:

undermining investor confidence in government obligations in national currency. In this case, the state is completely and permanently deprived of internal funding;

the reference point for the formation of interest rates in the national economy disappears;

there is a motivation to invest in foreign currency, which creates tension in the foreign exchange market.

These processes, as a rule, are quite lengthy and the restoration of confidence in the state as a first-class borrower is a procedure that requires significant costs from the state. Yes, after the collapse Soviet Union and the depreciation of the savings of the population, made in the Savings Bank before June 20, 1991, took five years, with the state fulfilling its obligations in full and high interest rates. Before the Government was able to attract the population to the public debt market and attract about 30 billion rubles to finance the budget deficit. (over 5.5 billion dollars).

If we consider the issue of money as the main instrument of debt policy, then it should be noted that in the static aspect, the issue of debt and inflation are interchangeable: for a given budget deficit, an increase in borrowing reduces the issue of money, and vice versa. In dynamics, the relationship between the emission of debt and the emission of money supply reflects the complementarity of inflation and public debt. Thus, the increase in the expansion of GKOs in 2000-2001. allowed to postpone inflation, but led to an inflationary surge in 2002-2003 as a result of the debt crisis.

If the state cannot make additional borrowings to ensure payments on the underlying debt, then the amount of money emission is determined by the current budget deficit, and not by the target setting to reduce the debt burden. Russia found itself in a similar situation after the August crisis. If the authorities can resort to additional borrowing in the external market, then the optimal size of the issue in each period should depend on the long-term target setting for reducing debt obligations. In this case, it is important not only to ensure minimum dimensions issue of money, but also take into account the restriction on new borrowing arising from a long-term goal. In general, with an optimal debt management policy, an increase in borrowing can be accompanied by inflationary financing of the budget deficit.

Obviously, in a situation of a debt crisis, inflationary financing of the deficit is necessary, on the one hand, to ensure payments on the underlying debt, and on the other hand, to achieve the target setting for a certain level of debt burden. At the same time, in order to prevent an increase in inflation, it is necessary to determine the boundary of economically safe inflation and set the maximum allowable increase in the monetary base.

In addition, there are certain reserves for reducing the total amount of public debt and payments on it in the area of reducing the outflow of capital from Russia. Taking into account the fact that, according to various estimates, 10-25 billion dollars were exported from Russia annually, it is clear that Russia, in principle, would be able to service its external and internal obligations.

At present, loan capital is exported from Russia mainly in the form of bank loans, trade credits and advances. cash foreign currency, etc. and entrepreneurial capital - in the form of direct and portfolio investments. At the same time, along with the classical incentives for the export of capital (development of foreign markets, access to foreign sources of raw materials, obtaining higher profits abroad, etc.), the motives characteristic of the so-called “flight” of capital are very strong.

Theoretically, any excess of capital exports over imports can be interpreted as a "flight" of capital due to the limited opportunities for investing these funds in the domestic economy.

The flight of capital from Russia occurs both legally and illegally. Legal capital flight includes portfolio investment, accumulation of foreign currency in cash, capital transfers from emigrants and other transfers reflected in the item “Other assets” in the balance of payments. Illegal capital flight is carried out in such ways as non-receipt of export earnings on time, non-repayment of import advances on time, non-equivalent barter, smuggling exports and others, reflected in the article “Net errors and omissions”.

The emerging theory of "capital flight" indicates that it narrows the country's potential tax base, is often accompanied by an increase in external debt and the cosmopolitanization of a significant part of the national capital.

The export of capital from Russia is one of the reasons for the significant decline in domestic investment. The result of this situation is high stakes bank loans, far exceeding the rate of inflation, even taking into account possible banking risks.

The negative impact of the export of capital on the state of Russia's balance of payments and the size of its gold and foreign exchange reserves is also obvious. The volume of Russia's official gold and foreign exchange reserves continues to be slightly larger than the value calculated according to the internationally accepted criterion for the sufficiency of these reserves (three-month imports of goods and services). Maximum size of these reserves in mid-2003 amounted to about 40 billion dollars.

As a result, Russia is forced to resort to all new loans to finance the balance of payments deficit, delinquency in payments for servicing the state external debt and postponing these payments.

Stopping capital outflows for Russia would help restore investor and creditor confidence and increase the domestic savings needed by the Russian economy. There are two main ways to solve this problem: 1) strengthening administrative control over financial flows, supplemented by tightening legislation; 2) implementation of systemic institutional changes that create a favorable investment climate.

Within the framework of the first direction, measures are possible against the use of standard schemes for the illegal export of capital: underestimation of export prices and non-return of foreign exchange earnings; conclusion of fictitious import contracts with advance payment and inflated prices; corruption at customs; settlements through offshore zones.

Implementation of measures of the second direction: balance of the budget; improvement of the tax system and tax administration; ensuring reliable operation of the banking system; protecting the rights of creditors and investors; "transparency" of financial statements of all enterprises and organizations; the fight against crime and corruption, a sharp improvement in the work of the prosecutor's office and the judiciary; strict observance of federal laws throughout the country, the cessation of arbitrariness on the part of regional and local authorities and the restriction of their privileges.

Effective management of public liabilities does not yet play a key role in the system of public finances. Recent events show that it is impossible to prevent the emergence of crisis situations by tightening fiscal policy alone. In 2003, the government succeeded in significantly reducing public spending, ensuring the primary surplus of the federal budget. However, it proved unable to avoid an avalanche-like increase in domestic debt service spending. The inability of the state to fulfill its obligations was the main reason for the change in the exchange rate regime, the banking crisis, and the threat of macroeconomic destabilization.

The expansion of domestic and foreign debt was an inevitable consequence of the abandonment of the inflationary policy and the aggravation of the crisis in the tax system. The extremely negative consequences of this expansion could have been avoided by pursuing a more effective policy of managing state obligations. The rapid growth of borrowing volumes, the critical cost of servicing them in recent years, and, as a result, Russia's inability to fulfill its obligations have shown the urgency of the task of building an optimal debt management strategy.

At present, the Ministry of Finance, which is in charge of public debt management, is forced to concentrate on solving operational tasks, mainly related to the distribution of available financial resources. For this reason, the borrowing policy pursued by the Ministry of Finance is more subject to current needs, not adequately providing for the solution of strategic tasks for managing the state's obligations.

The division of public debt into external and internal is largely artificial. With further liberalization of the movement of capital, such a distinction becomes meaningless. A simplified approach to the monetary structure, with an emphasis on only two currencies: the ruble and the dollar, is also unjustified, while other currencies, including the German mark, the Japanese yen and the Italian lira, are currently used in extremely limited volumes. It is necessary to move to the management of the multicomponent currency structure of the public debt, taking into account both direct and cross-currency risks.

At present, the main task is to change the currency structure of the public debt in order to minimize the cost of servicing and hedge currency risks. At the same time, emphasis should be placed on a more adequate reflection in the management of obligations of the structure of foreign exchange receipts to the state budget.

In order to minimize the cost of servicing debt, it is important to ensure flexible management of the structure of interest payments. It is necessary to replace current payments at a fixed and floating rate, taking into account the most attractive currency. Interest rate swaps should become the main instrument for implementing such transactions.

The public debt management system should provide for all current debt repayment and service payments. It is necessary to constantly harmonize the payment schedule with the receipts from the Ministry of Finance intended to pay off obligations. Cash flow management should minimize the risks arising from the lack of liquidity. The operational management of the flow of payments and receipts should minimize the risk of non-payment and non-financial risk.

The functions of public debt management should also include maintaining the market for internal and external government obligations. This could be a direct task of the body responsible for public debt management. Unlike the Central Bank, which dealt only with the GKO market, such a function would cover all markets for government obligations (including the external debt market), using the available liquid funds more efficiently.

In addition to traditional operations in public debt management, more attention should be paid to modern financial engineering techniques. Derivatives, interest rate and currency swaps, futures and options contracts, convertible bonds, puttable bonds, squeaks, etc. should be included in the practice. The use of derivative instruments will effectively reduce not only the current, but also the prospective cost of debt, ensuring control over the level of risk. By the way, the exchange of GKOs for Eurobonds, which took place in July 1998, was, in fact, the first attempt to use one of the key instruments of financial engineering - the conversion of one obligation into another. It is recalled that as a result of this fairly large-scale operation by Russian standards, bonds totaling 27.5 billion rubles. (4.4 billion dollars at the current exchange rate). Were exchanged for two issues of Eurobonds with a length of 7 and 20 years for a total amount of USD 6.4 billion, including those placed for cash in the amount of 500 million dollars

By the way, derivative instruments are used in risk management by almost all financial institutions. In the context of the globalization of financial flows, the system of government obligations management faces tasks that are no less difficult in terms of risk management and financial engineering. To effectively perform functions with saving the cost of debt servicing and minimizing risk, the public liability management system should be fully based on modern scientific achievements and the financial engineering tools available in the world practice.

In conclusion of this paragraph, it should be emphasized that in terms of optimizing external debt, it is restructuring, according to most economists, that is the best tool, since it allows you to adjust the ratio of debt payments to exports - the current liquidity of the country.

Domestic debt management may involve inflationary financing, but within acceptable limits. In addition, it is advisable to build a system of internal borrowing, providing for the theoretical and practical possibility of repaying new loans in the absence of the possibility of refinancing.

The most widely used methods of managing external debt obligations are restructuring and conversion. Basic schemes restructuring are buyback, debt securitization, use of Brady bonds, debt write-off.

Debt redemption. In cases where debtor governments may have significant financial reserves, the borrower can be allowed to buy its own debts on its own, which will allow it to reduce the total amount of public debt. However, world practice has a negative attitude towards early redemption of debts, since, firstly, the worst borrowers win, whose debts are traded at the largest discount, and secondly, the principle of equality of creditors is violated.

In April 2002, Russia signed a package agreement with Germany, according to which, for a debt to the former GDR in the amount of 6.4 billion transferable rubles. 500 million dollars were paid, including 350 million dollars. in 2002, 75 million dollars. - in 2003 and before February 1, 2004 - the remaining 75 million dollars. Of the 3.6 billion dollars. Russian debt of the Czech Republic through the mediation of RAO "UES" was purchased at a significant discount of 2.5 billion dollars. The remaining 1.1 billion dollars. were restructured for the period up to 2020. A significant part of this amount will be repaid through commodity deliveries.

Debt securitization - re-registration of public debt into new market debt money market instruments, including loan capital. Among the main types of securities circulating on international financial markets, there are two groups:

? foreign bonds issued by non-residents in the domestic market of a foreign state;
? eurobonds - medium and long-term obligations in eurocurrencies issued on the European market among foreign investors.

Recently, it has become widespread securitization of bank debts, those. exchange of liabilities to creditor banks for bonds. If the new securities are traded on the market at a smaller discount, such a transaction will reduce the total amount of debt. This restructuring scheme is implemented on a voluntary basis if new obligations are recognized as priority in relation to old debts. Otherwise, the expected payments on the old debt will be equivalent to payments on the new debt, which will trade at the same discount as the existing one.

By the beginning of the 1990s. In international practice, a fairly effective system of external debt restructuring has developed, proposed for the settlement of debt obligations of developing countries by US Secretary of the Treasury N. Brady (“plan

Brady"), At that time, the securities markets of developing countries were characterized by very low liquidity - 25-40% of the face value. As a result of negotiations between debtors and creditors in 1990-1994. was carried out brady bond issue for a total amount of about 100 billion dollars. They are government bonds issued in exchange for government debt to commercial banks. In international practice, the following types of Brady bonds: parity (with reduced interest); discount (with a reduced principal amount of the debt); stepwise (with lower initial rates); debt conversion, new debt; interest; capitalized.

External debt restructuring may be accompanied by partial write-off (abbreviation) the principal amount. In some cases, partial debt relief is a preferred strategy for lenders over making additional loans in the hope of future repayment. It is worth remembering that in the 1990s in settling the debt obligations of the USSR to the Paris and London clubs, Russia managed to achieve the cancellation of part of the debts.

It must be borne in mind that it is almost impossible to restructure the entire debt. In this case, resort to conversions.

The main financial mechanism of the conversion scheme is to liquidate part of external debt claims by exchanging them (swap) for other types of liabilities, primarily for national assets. The scheme is based on the “unpaired swap” principle: nominal debt is swapped at a special redemption rate, which is oriented to the secondary market quotes of the respective debt claims.

Various forms of conversion operations (swap operations) to creditors (countries, international financial organizations, foreign commercial banks) are possible: "debt for cash»: debt buyback at a discount on non-guaranteed commercial debt;

"debt for export": export finished products allows, in addition to reducing the debt burden as such, to maintain competitive domestic production, promotes the development of new markets. The Russian leadership is most active in finding ways to repay its foreign debt with commodity deliveries, including military equipment and weapons;

"tax debt". This requires the legislative establishment of tax incentives for investors holding the external debt of the debtor country;

"debt into bonds". This scheme was implemented by Russia as part of the repayment of a debt to the London Club by issuing Eurobonds. In addition to saving maintenance costs, issuing Eurobonds mitigates the effect of crowding out private investment;

"debt on property". To reduce the debt burden, the exchange of debt obligations for shares of privatized enterprises is used. The mechanism is as follows: a foreign company buys external debt (part of the debt) on the secondary market and then presents it to the central bank of the debtor country; the central bank pays for the repurchased debt in national currency; a foreign company directs the funds received to finance investments in the debtor country;

"debt for debt" represents in essence a swap of external liabilities into financial assets, i.e. debts to the debtor country. It is a kind of political mutual settlement. For example, in connection with the emerging rapprochement between North and South Korea, a scheme for offsetting part of the debt of 4.5 billion dollars may be implemented for Russia. North Korea for the debt of South Korea.

In conclusion, it is worth mentioning such an unconventional method of solving the problem of external debt as commodity exchange transactions "debts for nature". Their essence is that the World Bank or an interested group of environmentalists buys from the creditor at a significantly reduced cost (or receives it free of charge) part of the external debt that the country is unable to pay. This amount is then transferred to the borrower's central bank and converted into local currency or securities denominated in local currency. The funds thus obtained are used to carry out environmental protection activities in the debtor country, and part of the external debt is written off.

To pay off part of the external debt can be used transfer of part of the national quota to reduce greenhouse gas emissions into the atmosphere. In accordance with the Kyoto Protocol by 2008-2012. industrialized countries are obliged to reduce emissions of greenhouse gases into the atmosphere to the level of 1990. Russia has the opportunity to sell part of the unused quotas for gas emissions, which promises from 3 billion to 10 billion dollars. This amount may become the subject of negotiations with Russia's creditors.

We must not forget about the simple (early) debt repayment. A very significant event for Russia in 2006 was the early final repayment of debt former USSR before the member countries of the Paris Club in an amount equivalent to 21.6 billion dollars. USA. The implementation of this operation, unprecedented in its scale, made it possible to reduce the volume of federal budget expenditures in the form of future interest payments by an amount estimated at 7.7 billion dollars. USA 1 .

It can be a financial instrument and an object of management at the same time. As a financial instrument, public debt provides an opportunity for legislative (representative) and executive authorities to influence money circulation, the financial market, investment, production, employment, the level of savings and many other economic processes.

The public debt management system in general view shown in fig. one.

Rice. 1. Public debt management system

Simultaneously state debt speaks as a control object when the authorities establish all the necessary practical aspects of its functioning. Thus, the authorities determine the relationship between various types of debt activities, regulate the structure of public debt in terms of maturity and profitability of debt obligations, establish the procedure for issuing and circulating government loans, providing and repaying government loans and government guarantees, as well as fulfilling financial obligations on them.

Objectives of public debt management

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

keeping the amount of internal and external public debt at a level that ensures the preservation of the economic security of the country, the fulfillment by the authorities of their debt obligations without significant damage to the financing of socio-economic development programs;
minimizing the cost of debt by lengthening the terms of borrowing and reducing the yield on government securities, by moving to other markets and switching attention to other groups of investors;
maintaining the state's reputation as a first-class borrower based on the impeccable fulfillment of financial obligations to investors;
maintaining the stability and predictability of the public debt market;
achievement of effective and targeted use of borrowed funds, government loans and guaranteed loans;
ensuring timely repayment of state loans and payment of interest on them;
diversification of debt obligations in terms of borrowing terms, yield, forms of income payment and other parameters to meet the needs of various groups of investors;
coordination of actions of authorities of all branches and levels in the market of state debt obligations. It seems appropriate to define public debt management in a broad and narrow sense.

Managed by public debt in a broad sense we will understand the formation of one of the directions of the economic policy of the state associated with its activities as a borrower. Public debt management in a broad sense is the prerogative of the legislature (sometimes the government) and consists in the formation of policy in relation to public debt (domestic and external); setting the boundaries of public debt (including in determining the size of the budget deficit and, consequently, the volume of loans attracted to finance it); determining the main directions and goals of influencing micro- and macroeconomic indicators; establishing the possibility and expediency of financing national programs at the expense of the state debt, etc.

Managed by public debt in the narrow sense refers to the totality of activities related to the issuance and placement of government debt obligations, servicing, repayment and refinancing of government debt, as well as the regulation of the government securities market. Debt management in the narrow sense is carried out by the executive authorities, mainly the Ministry of Finance and the central bank. It should be noted that these two instances do not have the ability to directly influence the amount of the total public debt.

Public Debt Management Process

Includes the following functional elements:

borrowing planning by determining the procedure, conditions for the issuance and placement of government debt obligations;
servicing debt obligations through the implementation of operations for the placement of loans, the payment of interest income on them, refinancing and repayment of debt;
control over the state of public debt.

One of the most important areas of public debt management in world practice is the management of the composition and structure of public debt (debtmanagement) with a constant amount of total debt. Objects of regulation debt management are:

the structure of the terms of circulation of various debt obligations, by changing which the state manages to partially or completely restructure its debt;
the structure of creditors, the ratio of residents and non-residents in it, as well as the ratio of market and non-market loans intended for certain categories of creditors;
the amount of total public debt.

Regulation of the amount of internal and external debt of the state and keeping it on acceptable level- a defining moment in the management of public debt, which in practice is realized in the establishment of a number of restrictions. In particular, the budgetary criteria for countries wishing to join a monetary union (the Maastricht criteria) are of interest. According to these criteria, the volume of total public debt should not exceed 60% of GDP, and the current state budget deficit should not exceed 3% of GDP. If these thresholds are exceeded, governments must consider the possibility of imposition of penalties by the EU (for example, paying fines according to a pre-approved procedure). At the same time, in the event of a so-called “severe recession” in the economy (with a decrease in GDP by more than 2% per year), it is possible to increase the state budget deficit without applying penalties.

In Russia, the borrowing activities of all authorities are regulated by a whole set of legislative restrictions. Yes, the budget Russian Federation establishes limits on state and municipal borrowings, debt service costs, the need to develop and approve programs for domestic and foreign borrowing, and limits on budget deficits. Limits on internal and external debt are set annually by laws and budget decisions at each level of government.

Public debt management is also strategic and operational.

Strategic Issues development of public debt are within the competence of the Federal Assembly, the President and the Government of the Russian Federation, the legislative (representative) and executive authorities of the constituent entities of the Russian Federation and municipalities. In particular, every year in the law on the federal budget the Federal Assembly and the President of the Russian Federation approve the maximum volumes of the state internal and external debts; sources of financing the budget deficit, including income from the issue of government securities; the maximum amount of external borrowings; limits on government loans to foreign states and CIS member states; directions of use, conditions for granting and limit sizes of budget credits; upper limits of state internal and external guarantees. The President and the Government of the Russian Federation develop and approve social and economic programs that may directly affect various aspects of the development of public debt. The President of the Russian Federation in his annual Address to the Federal Assembly of the Russian Federation also pays special attention to the management of public debt.

operational management public debt is carried out by the Government and the Ministry of Finance of the Russian Federation, as well as the Central Bank of Russia, Vnesheconombank and Sberbank as agents of the Ministry of Finance of the Russian Federation. These bodies determine the general conditions for issuing individual loans, the procedure for issuing and circulating debt obligations, the time of issuing the next loan and the conditions for its operation, organize the primary placement and secondary market for government securities, organize and carry out the payment of income and the repayment of debt obligations, the issuance of budget loans and state guarantees, carry out control actions and other measures for the operational management of public debt.

Similar issues within their competence are resolved by the legislative and executive bodies of the constituent entities of the Russian Federation and municipalities. At the same time, they proceed from the norms laid down in federal legislation.

Thus, under public debt management one should understand the totality of tactical and strategic measures for servicing the public debt and making new borrowings, regulating the volume and structure of debt, regulating the government borrowing market and monitoring their targeted and effective use.

Principles of Public Debt Management

Public debt management is based on the following principles:

unconditionality - ensuring the unconditional fulfillment by the state of all obligations to investors and creditors that the state, as a borrower, assumed when concluding agreements for borrowing funds;
unity - taking into account in the process of public debt management all types of obligations issued by the Russian Federation as a sovereign, as well as constituent entities of the Russian Federation and municipalities;
risk reduction - placement and repayment of loans in such a way as to minimize the impact of capital market conditions and speculative trends in the securities market on the government obligations market;
optimality of the structure of debt obligations in terms of circulation and maturity;
maintaining financial independence — maintaining an optimal structure of debt obligations between resident investors and non-resident investors;
transparency - maintaining openness when issuing loans, providing access for international rating agencies to reliable information about the economic situation in the country in order to maintain a high credit reputation and rating of the country-loan chic.

Control Measures

Worldwide, the most common method of public debt management is refinancing public debt, i.e. repayment of part of the state debt by placing new loans.

This method requires a high financial reputation of the borrowing government. In the global financial market, the reputation of borrowing countries is expressed by the ratings assigned to them by international rating agencies in accordance with international rating rules.

In a financial crisis, there is a need for debt restructuring. In accordance with Art. 105 BK RF under debt restructuring refers to the termination of debt obligations constituting state or municipal debt based on an agreement, with the replacement of these debt obligations with other debt obligations providing for other conditions for servicing and repaying obligations. Debt restructuring can be carried out with a partial write-off (reduction) of the amount of the principal debt.

In a difficult economic situation, a growing deficit, the inability to fully and timely pay off debts, the government may resort to such measures as conversion, consolidation, unification, deferral of repayment, cancellation of public debt.

Conversion - is the change in the rate of return on the loan; Most often, the state reduces the amount of interest paid on loans, thereby reducing the costs of the state budget and the management of public debt.

Consolidation - change in the duration of previously issued loans, i.e. decision to postpone the payment date to a later date. The opposite solution is also possible - early repayment. Usually, together with consolidation, the unification of government loans is carried out.

Unification - exchange of several previously issued loans for one new one.

Deferral of repayment A loan differs from consolidation in that a deferral not only delays the maturity of the loan, but also stops paying interest on it.

Cancellation state internal debt - a complete refusal of the state or debt obligations (is a last resort).

The adoption of the listed possible decisions of the state violates the main principle of public debt management - the principle of unconditionality. Therefore, their use requires deep preliminary study, analysis of all possible economic and political consequences.

Control over public debt management

Public debt management involves the control of two key indicators- the amount of public debt and the cost of servicing it. In conditions economic growth what is important is not their absolute size, but the share of public debt in GDP (or in exports) and the ratio of real interest and the rate of economic growth. A simple statement of the absolute size of the debt ignores the volume of GNP. It can be argued that a rich nation is better able to sustain a significant public debt than a poor nation.

Thus, with the growth of public debt, there is the possibility of bankruptcy of the nation and the danger of shifting the debt burden onto future generations. And if public debt servicing is financed by issuing new money, then such a scheme leads to a classic inflationary scenario - there is too much money and not enough goods.

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

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

The specificity of the category of public debt also determines the features of its operational management. Usually it is assigned jointly to the Ministry of Finance and the Central Bank. Management of public debt repayment is carried out from three main sources: from the budget; at the expense of gold and foreign exchange reserves, property; from new loans.

Techniques and methods of public debt management

There are many methods for solving the public debt problem. According to the urgency and the nature of the tasks to be solved, budget-export and financial-technical methods are distinguished. According to the conditions and mechanism of implementation, market and non-market methods can also be distinguished.

Budget and export methods- long-term and connect the solution of the problem, for example, external debt, with an increase in the country's trade balance, as well as an increase in GDP and the state budget.

Financial and technical methods - short-term and allow solving the problem by improving the terms of borrowing, reducing the total amount of debt, changing the time structure of payments.

There are the following main financial and technical methods of public debt management: consolidation, conversion, unification, refinancing, restructuring, deferral of repayment, cancellation of loans, etc.

Non-market methods of public debt management include such as conversion, consolidation and unification. These methods involve changing the terms of outstanding loans unilaterally, often without the consent of the security holders. Such measures violate the rights of investors, and in this regard, their use is possible only in a planned economy and is unacceptable in market conditions.

Thus, in the Soviet period, the increase in the terms and reduction in the cost of public debt was achieved through conversion and consolidation. In a centrally planned economy, these activities were carried out by force. A conversion is usually understood as a change in the yield of loans. In order to reduce the cost of public debt management, the state most often reduces the amount of interest paid on loans. However, an increase in the yield of government securities for creditors is not ruled out. Such an operation was carried out, for example, in 1990, when the yield on bonds of a 3% winning loan was increased to 9%, and treasury bonds - from 5 to 10%.

Consolidation is understood as a change in the terms of loans associated with the terms of their circulation. Thus, in 1990, the term of treasury obligations was reduced from 16 to 8 years.

Debt conversion and consolidation could be combined with unification loans, which meant the combination of several previously issued loans into one new loan. In this case, bonds of unified loans were exchanged for newly issued bonds, and the yield and maturity of the new loan changed in the direction necessary for the state.

In modern conditions, the difficulties of many countries with the repayment of external debt have given rise to new methods of covering obligations to creditor countries. These methods of managing public external debt are usually combined into the concept foreign debt conversion. Conversion in this case means the implementation of all mechanisms that ensure the replacement of external debt with other types of obligations that are less burdensome for the economy and finances of the debtor country. Among them: the repayment of debt by commodity deliveries, the exchange of debt obligations for shares and bonds of companies of the debtor country, the payment of debt in local currency with its subsequent conversion into investments or property, the exchange for debt obligations of third countries, etc.

Russia is actively using foreign debt repayment method commodity deliveries. Thus, the debt of Slovakia ($1.8 billion), Hungary ($480 million), the Republic of Korea ($170 million), Bulgaria ($100 million) and Poland ($20 million) was repaid 130J-

Through the mechanism of the Paris Club, Russia went to write-off so-called bad debts of the poorest countries in the amount of about 800 million rubles. Most of these loans were issued during the Soviet era, and the money was not returned on them. By writing off part of the debt, Russia is able to document the existence of the debt and formalize the procedure for its repayment and service through intergovernmental agreements. Thus, Russia, firstly, helped the poorest countries, and secondly, those who did not pay before are now starting to do so.

At present, according to Article 98 B of the Russian Federation, changing the terms of state loans issued into circulation - the terms of payment and the amount of interest payments, the terms of circulation - is not allowed.

In a market economy, restructuring debt through the use of financial market mechanisms. The short-term nature of Russian debts and the high cost of borrowing in recent years have forced the state to constantly take care of lengthening the terms and reducing the yield of new borrowings. This is achieved, in particular, on the basis of debt restructuring, under which, according to 105 of the Budget Code of the Russian Federation, is understood as the repayment of debt obligations by the simultaneous implementation of borrowings in the volume of repaid debt obligations with the establishment of other conditions for servicing the debt and the terms of its repayment. The main restructuring schemes include: debt cancellation, that is, cancellation of previous loans; debt redemption; debt securitization.

In the field of external borrowing, debt restructuring is also carried out on a contractual basis. Then restructuring is understood as a change in the schedule for repayment of the principal debt and the payment of interest on it. Restructuring of external and internal debt can be carried out with a partial write-off (reduction) of the amount of the principal debt.

Having taken on the external debt of the former USSR and being unable to fulfill its obligations, Russia almost immediately entered into negotiations on the terms of servicing and repaying the external debt. Long negotiations with the Paris Club of creditors, accompanied by partial and temporary deferrals of payments, ended in April 1996 with the signing of a general agreement on the restructuring of Russian debt in the amount of $38 billion. , which includes short-term debts, will be repaid within 21 years. The payment of the capital amount of the restructured debt began in 2002. On the basis of a general agreement, bilateral intergovernmental agreements are concluded with each creditor country, which fix specific amounts and terms of debt repayment.

In October 1997, a similar agreement was concluded with the London Club of Creditors. The restructuring covers $32 billion, repayment should be carried out within 25 years with a seven-year grace period |41|

The consequences of the 1998 financial crisis prompted Russia to start new negotiations with foreign creditors on the restructuring and partial cancellation of the external debt of the former USSR. In February 2000, Russia and the London Club reached an agreement to reduce the debt from $32.6 billion to $21.3 billion (the write-off of the Soviet debt amounted to 36.5%) and re-register the remaining part of the debt into Eurobonds maturing within 30 years and an interest rate of 2.25 to 7.5% per annum.

The main method of obtaining funds to repay loans stands for refinancing debt, which refers to the repayment of accumulated debt by issuing new loans. In this case, when constructing a schedule for issuing new loans, one proceeds from the need to link the terms of their placement with the maturity dates of bonds of previous issues. For example, Russia used refinancing to pay off debt on the 1966 government 3% domestic winning loan. After the expiration of this loan, the bonds were exchanged within one year for bonds of a new loan - the 1982 domestic winning loan - without paying exchange differences.

The minimum price of borrowed funds in the market is determined by the refinancing rate. The refinancing rate is the interest rate at which debt is borrowed to service domestic debt.

Thus, the state credit regulates the market of interbank credits. If it is impossible to refinance the debt, the current budget revenues are directed to its servicing and repayment.

In addition to the above methods of public debt management, it is possible to deferment of repayment of loans and cancellation of public debt. Postponement of the repayment of previously issued loans is carried out in conditions where the further development of operations for the issuance of new loans is not financially effective for the state. Deferral not only delays the repayment of loans, but also stops the payment of income.

The cancellation of the public debt is understood as a measure, as a result of which the state completely renounces obligations on issued loans. Cancellation of government securities can be carried out for two reasons: in the event of the financial insolvency of the state, i.e. his bankruptcy; due to the coming to power of new political forces, which, for certain reasons, refuse to recognize the financial obligations of the previous authorities.

Countries with a market economy under normal conditions do not use these methods of public debt management, since their use leads to irreparable damage to the reputation of the state as a borrower among potential investors and creditors. In the history of public debt, their implementation was observed only in conditions of war, post-war devastation or severe budgetary and financial crises.

In 1998-2000 the state debt functioned under the sign of novation on state securities. Innovation - this is the replacement, by agreement of the parties, of the original debt obligations with new ones, with the establishment of other conditions for servicing the debt and the terms of its repayment.

The innovation was a consequence of the debt crisis, which, in turn, was caused by the crisis of the Russian economy and finances. This measure was announced by Decree of the Government of the Russian Federation of August 17, 1998 No. 980 "On the organization of work on the redemption of certain types of government securities." The total amount of the "frozen" debt amounted to 265.3 billion rubles, and its restructuring was envisaged.

Great value for improving the efficiency of public debt activity will have creation unified system management of the public debt of the Russian Federation. The organic interaction of internal and external debts, ensuring their unimpeded mutual substitution on the basis of a unified debt policy, the unity of planning and accounting for all operations to attract, service and repay external and internal government borrowings will allow: to optimize the terms of circulation, redemption and profitability of government securities; minimize the adverse impact of fluctuations in foreign exchange rates and interest rates in international financial markets on the amount and cost of government borrowings; optimize budget spending on public debt servicing; timely and in full to fulfill obligations to internal and external creditors.

FINANCE, MONEY CIRCULATION, CREDIT

UDC 336.27 I.V. Babich

DEBT MANAGEMENT METHODS

The use of such an instrument for covering budget expenditures as public debt requires effective management from public authorities, which provides for the impact of the subject on the object, which is expressed in the totality of tools, methods and mechanisms fixed by law, taking into account the historical prerequisites for use. The article presents a classification and analysis of existing methods of public debt management, features of their application. The choice of one or another method is directly determined by the structure and composition of debt instruments that form the debt portfolio at the appropriate level of government. The use of public debt management methods contributes to the formation of an effective debt policy by reducing the size of public debt and optimizing the cost of servicing it.

Key words: budget deficit, budget expenditures, public debt, public debt management, public debt management methods, restructuring.

METHODS OF STATE DEBT MANAGEMENT

The paper states that using such a tool of covering budget expenditure as public debt requires good governance and effective control from the state that involves the development of a range of instruments, methods and mechanisms and passing relevant legislation while taking into account historical conditions. The paper presents the classification and analysis of existing methods of public debt management and their special features. The author argues that the choice of a method is directly driven by the structure and composition of debt instruments that form a debt portfolio at government level. Using the methods of public debt management promotes development of an efficient debt policy by reducing public debt and optimizing debt service costs.

Key words: budget deficit, state spending, state debt, state debt management, methods of state debt management, restructuring g.

The problem of a high level of public debt is currently acute not only in our country, but also abroad. The protracted transformation of the Russian economy has not yet made it possible at the national level to determine a holistic balanced concept of fiscal and budgetary policy in the medium term, and even more so in the long term. Constantly growing budget expenditures do not correspond to the rate of income growth, which inevitably leads to the formation of a budget deficit both at the federal and regional levels. In addition, the reason for the deficit of the regional and municipal budgets is also the assignment to subfederal and municipal bodies of additional functions that do not match.

driven, as a rule, by the transfer of relevant income sources. In this case, the main and, perhaps, the only way to finance the budget deficit is public debt.

Public debt can be viewed as a relationship arising from the attraction and use of additional centralized state monetary funds, i.e. financial relations, which are economic ties, interactions, relations in monetary form. In addition, state and municipal debt activity is nothing more than one of the independent types of financial activity of the state and its territorial divisions (along with tax,

emission, investment activity). This is due to the fact that through the public debt, funds are accumulated that are necessary both to cover economic and social expenses, and to repay and service debt obligations. Moreover, these funds are not spent on investment purposes, and when they are used, neither material nor monetary returns arise.

According to articles 98, 99 and 100 of the Budget Code of the Russian Federation, the following types of state debt obligations can be distinguished, which together constitute the state debt:

1) loans attracted from credit institutions;

2) government securities;

3) budget loans;

4) state guarantees.

The emergence of such an instrument for covering budget expenditures as public debt requires effective management from public authorities, like any object correlated with macroeconomic indicators. It is the management mechanism that determines the direction of the state debt policy, determining the strategy and tactics for achieving the set final goals. In addition, managing such an object, the state through it influences the circulation of money, the stock and financial markets, investments, the development of production and other economic processes, and also establishes all the necessary practical criteria for the functioning of the public debt.

The implementation of public debt management is carried out by applying the following methods based on historical and economic prerequisites that determine their occurrence and application:

1) refinancing of the public debt - repayment of the principal debt and interest at the expense of funds received from the placement of new loans and obtaining loans from credit institutions;

2) innovation, which involves the conclusion of an agreement between the borrower and the lender to replace one obligation with another. It is also possible to transfer debt obligations arising from any other grounds, in particular, purchase and sale, lease of property, and vice versa, into debt obligations. This method is, according to Yu.Ya. Vavilov, a special case of restructuring;

3) unification - the decision of the state to combine several previously issued loans, as well as the exchange of previously issued bonds and certificates for bonds and certificates of new loans;

4) conversion, which implies a change in the yield on loans received by the state as a borrower;

5) consolidation, implying a change in the terms of borrowing in terms of increasing the terms for which debt obligations are provided, i.e. involves the postponement of repayment to a later date;

6) deferral of repayment of loans, which is the use of such a method as consolidation, with the simultaneous refusal of the state to pay income on these debt obligations;

7) cancellation of the public debt, i.e. refusal of the state from all previously assumed debt obligations;

8) restructuring, involving the signing of an agreement on the termination of debt obligations constituting state or municipal debt, with their replacement for other debt obligations with other terms of service and repayment;

9) writing off debt by reducing the amount of principal debt;

10) securitization - exchange of debts for bonds;

11) exchange of bonds according to a regressive ratio, when several previously issued loan bonds are equated to one new one;

12) early repayment, which involves saving budgetary funds if their future maintenance is necessary.

These methods are applied individually to debt obligations constituting government debt and have their own specifics. In addition, some of them may be individual for a certain type of debt obligation (for example, exclusively for government securities).

Public debt management methods can be divided into administrative and market ones. The first group includes: conversion, consolidation, unification, deferred repayment, write-off, cancellation, etc. The second group includes restructuring, novation, prolongation, additional placement, redemption, securitization, exchange, etc. This distinction is based on such a sign as making a decision on the application of the method. Thus, administrative methods are characterized by unilateral decision-making on their application by the state, without obtaining prior consent from the creditor, and market methods, in turn, provide for a conciliatory nature, i.e. the decision is preceded by a negotiation process between the lender and the borrower, while the lenders have the right to decide whether to accept the proposed conditions or refuse them.

This distinction can be confirmed by the historical experience of public debt management in Russia (for example, the application of these methods in the administrative-command policy of the USSR, then in the situation of the development of market relations, which assume equality of the parties and transparency, as well as in the implementation of market laws).

Only one method of public debt management is officially fixed in the Budget Code of the Russian Federation

Restructuring due to the transition to market relations (Article 105). This method is based on a contractual (conciliatory) nature, which provides for the conclusion of an agreement between the lender and the borrower - a public authority authorized to borrow. This method also provides for the accrual and payment of interest in accordance with the terms of the agreement. In this case, the contract may not be for the entire amount of the debt obligation, but only for a certain part. It is possible to restructure not only the principal amount of the debt, but also interest, penalties, fines and penalties. Therefore, these amounts are not included in the amount of public debt service costs, but are considered as the amount of the principal debt under this agreement.

The legislation provides for the possibility of partial write-off (reduction) of the amount of the principal debt. In practice, there may be several restructuring agreements that involve the repayment of principal and agreed interest under certain agreements, subject to references to agreements that have repayment and service schedules. A write-off can be applied to such a type of debt obligation as a budget loan. This is explained, first of all, by the existing debt policy and market relations, since the parties to the contract (agreement) will be public authorities of the appropriate level. For loans received from banks, this condition will not be applicable, since it contributes to the loss of profit, and in the case of securities, write-off is impossible, since the agreement must be concluded solely with each owner of government securities. Thus, a partial or full write-off is carried out only after the payment of the principal amount and interest according to the prescribed schedules. Until that moment, these amounts are reflected in the debt book in full and throughout the entire period for which this agreement is concluded.

The use of partial write-offs (reductions) increases the efficiency of debt policy in terms of public debt management, since it allows minimizing service costs. The result of using this method is the postponement and dispersal of the payment of the principal debt, which makes it possible to avoid the formation of the so-called "peak payments".

In practice, public debt management methods are used both individually and in combination. This is due, first of all, to the desire to reduce the cost of debt obligations that make up the public debt, and to lengthen the period for which they are provided. In this case, conversion and consolidation are used. At the regional and local levels, such a method as writing off part or all of the debt (mainly budget loans) is also used, as a rule, on the basis of relevant regulatory legal acts.

S. I. Lushina, V. A. Slepova, V.K. Senchagov and A.I. Arkhipov as the main and, perhaps, the primary method of managing public debt, single out its regulation, which involves changing the structure or balance of public debt for the purpose of optimization. Under the balance of public debt refers to the ratio of the size of the debt and the sources of its repayment. Thus, at the heart of the method

Determination of the ratio of such categories as the value of income, expenditure and budget deficit, since it is precisely due to these indicators that the structure of public debt is formed, and in case of insufficient revenue sources, public authorities resort to borrowing.

Another method - the optimization of public borrowing - is practically an optimization program, within the framework of which the management of internal and external debt is carried out.

This approach applies to both debt generation and servicing and includes the following measures:

Ensuring the equivalence of changes in current debts and future taxes;

Maintaining a balance in issuing activities and tax collection with the process of increasing debt and the amount of its service;

Implementation of a debt stabilization policy linked to the investment process;

Carrying out measures to transform the debt growth policy into a restrictive policy stabilizing debt growth.

The main task of public debt management is to optimize the costs associated with financing the emerging budget deficit, i.e. finding the optimal balance between the state's needs for additional financial resources and the costs of attracting, servicing and repaying them. Therefore, it is necessary to initially analyze and estimate the size of the budget deficit, then determine the sources of its coverage. Management methods primarily affect existing debt obligations and determine the minimization of service costs and the size of the principal amount itself, but do not provide for the attraction of new borrowings.

AT separate group, in our opinion, it is possible to single out the so-called organizational methods, which imply a system of vesting certain powers (rights) regarding the management of existing borrowings by the relevant public authorities. Organizational methods involve the development of methodological foundations for the quality management of public debt by adopting relevant regulations that clarify the procedures for developing measures to reduce the debt burden and implementing programs aimed at improving the efficiency of budget expenditures. Thus, the ratio between the types of debt obligations is formed taking into account the risk of possible financial losses of the budget, the structure of debt obligations by maturity and their value, the procedure for additional placement of government securities, i.e. the optimal structure of the debt portfolio, which provides for the implementation of the main directions of the ongoing debt policy.

The main result of applying public debt management methods is to reduce the impact of the debt burden on the budget, as well as the most optimal placement of this burden over time, taking into account the economic situation in the country, since public debt, in essence, is anticipatory taxes.

1. Budget Code of the Russian Federation dated July 31, 1998 No. 145-FZ. ii_: http://base.garant.rU/12112604/16/#20014.

2. Vavilov Yu.Ya. State debt: textbook. allowance for universities. Ed. 3rd, revised. and additional M.: Prospect, 2007.

3. Kirillova O.S. Fundamentals of the formation of tax revenues as a tool to increase the transparency of budget execution // Byudzhet. 2006. No. 4.

4. Kirillova O.S. Improving budgetary relations in the context of local government reform // Finance and credit. 2006. No. 15.

5. Raizberg B.A., Lozovsky L.Sh, Starodubtseva E.B. Modern economic dictionary. M.: INFRA-M, 2009.

Public debt management- the formation of one of the directions of the financial policy of the state associated with its activities as a borrower, creditor and guarantor. All assets at the disposal of the Government of the Russian Federation serve as collateral for the state debt of Russia.

Administrative Methods(conversion, consolidation, unification, deferred repayment, debt cancellation, debt cancellation):

conversion is called a change in the original terms of the loan regarding yield. Most often, there is a change in nominal interest in order to reduce government spending associated with the payment of interest on the debt.

A change in the terms of loans relating to its terms is called consolidation public debt. At the same time, the state, without changing the yield of bonds, turns short-term obligations into medium or long-term ones.

Unification- Consolidation of several loans into one loan. As a result of this operation, a consolidated (or funded) debt is formed.

Market Methods(restructuring, additional placement of bonds, debt buyback, securitization, debt swap):

Debt restructuring- changing the schedule of repayment of the principal debt and payment of interest on it. Restructuring of external and internal debt can be carried out with a partial write-off (reduction) of the amount of the principal debt.

Debt refinancing– repayment of accumulated debt by placing new loans.

Loans are repaid by ransom(early redemption is possible) of bonds from investors, holding draws of winnings on winning loans, holding drawings of redemption on winning and interest-bearing loans, debt amortization (debt repayment in installments).

Income is paid when redeeming discount bonds from investors in the form of the difference between the redemption price and the placement price of the loan, by quarterly (semi-annual or annual) payment of coupons or payment of winnings on bonds that are in circulation.

Bond exchange by regression ratio– several previously issued loan bonds are equated to one new one.

Securitization- one of the forms of raising financing by issuing securities backed by assets that generate stable cash flows

To new methods of covering obligations to creditor countries is repayment of debt by commodity deliveries, exchange of debt obligations for shares and bonds of companies of the debtor country, payment of debt in local currency with its subsequent conversion into investments or property, exchange for debt obligations of third countries, and others. These methods of public external debt management are usually combined into the concept conversion external debt, which in this case means the implementation of all mechanisms that ensure the replacement of external debt with other types of obligations that are less burdensome for the economy of the debtor country.