Public Debt Management Is a system of financial eventsstate with the purpose of repaying loans, as well as payments of income on these loans, changes in terms and conditions of issued loans, issuance of regular debt obligations. This is one of the priority areas of the financial policy of the state.
To make decisions on the choice of management methodsthe state debt is influenced, in the main, by such factors as: the share of expenditures on servicing the public debt in the total amount of expenditure items of the budget and the percentage of GDP and the amount of state borrowings.
When assessing the external debt, the ratio between the amount of external borrowing and the volume of exports and the share of expenditures going to pay off the external debt to the amount of revenue from exports are used.
Public Debt Management Is a continuous process, in which three stages are consistently allocated: 1 - placement of securities in order to attract financial resources, 2 - repayment of public debt, 3 - servicing of public debt.
The national debt is extinguished at the expense of the budget, gold and currency reserves, money received from the sale of state property, as well as with the help of new borrowings.
The management of public debt includes two large groups of methods: financial and administrative.
Financial methods consist in the choice of the forms and methods by whichthe state will repay the national debt, taking into account financial indicators. They are aimed at achieving the maximum efficiency from attracting loans and finding ways to reduce the costs associated with their repayment, to a minimum.
Administrative Methods are based on the rapid implementation of orders of state authorities. Their function does not include assessing the effectiveness and effectiveness of actions related to the management of public debt.
The main measures to which the state resorts, when managing the national debt, are the following.
In the face of rising indebtedness and budget deficits, the country has the right to resort to such a measure as refinancing of public debt - Issue new loans to pay off old debts.
Conversion - this change in the state of profitabilityexisting loans. As a rule, the state resorts to reducing the size of loan payments in percentage terms to reduce the costs incurred in managing public debt.
Consolidation - implies the introduction of changes in the terms of loans related to their terms. Their change usually occurs in the direction of increase.
Unification of loans - consolidation into one of several existing loans. In this case, previously issued bonds are exchanged for new ones. Often unification is carried out together with consolidation.
Cancellation of public debt - a radical measure, in which the state renounces all obligations associated with the loan issued.
Public Debt Management in Russia in recent years is characterized by a gradual decline in the relative and absolute indicators of public debt. The percentage of debt to GDP is decreasing at nominal value.
Public debt management is carried out by Government of the RF, in the framework of the powers vested in him, which are established by the Federal Assembly of the Russian Federation.
It consists in the formation of policies,conducted with respect to the national debt, the establishment of debt boundaries, the definition of objectives and directions of impact on the indicators of micro and macro levels, the establishment of the appropriateness of financing state debt through national programs. All this is implemented through a system of activities that are associated with the issuance of debt obligations and its further maintenance. This requires a comprehensive approach from the state authorities and determines the multidimensional nature of the regulation of the emerging debt.
