Questions relating to public debt management, are among the most important in the economic policy of Russia.And this is due to the fact that in recent years there has been an increase in public debt, as well as expenses for its repayment.Hence, the main goal of management: reducing debt and cutting costs for its repayment.That's just not so simple as it might seem at first glance.Management of the internal public debt, as well as external, has features that are associated with the nature of relations with creditors, debt settlement, maintenance and limited in the choice of methods of debt settlement.In connection with this is to get acquainted with what are the methods of public debt management.
methods of public debt management
· Refinancing - repayment of the principal (or just completely), as well as interest thereon from the funds that have been received from the placement of new loans.
· Cancellation (default) - refusal of the state to pay its debt and interest on previously issued loans.
· Conversion - the decision by the state to change the profitability of previously issued loans.To achieve this, the state tends to reduce the size of interest payments.
· Novation - the agreement between the borrower and the lender to terminate the commitment and replacing them with other obligations that provide for other conditions of debt repayment.
· Unification - the decision by the State to combine several previously issued loans, when there is an exchange of bonds previously issued loans for bonds of new loans.
· Consolidation - increasing the term of the issued earlier commitments.The government is always interested to get loans for longer terms.
· Postponement of repayment of the loan (or all of the outstanding loans in advance) - is carried out when a further issuance of new loans can not be held to the state of financial activity.
Such methods of public debt management, as the conversion, the unification and consolidation of the government hires more often carried out in relation to home loans.As for the delay of the loan, that such a measure can be applied to external loans.
principles of public debt management
public debt management methods have been established to achieve the following objectives:
· Hold the volume of internal and external public debt at the same level.This is necessary in order to keep the country's economic security, as well as ensure that the authorities of the commitments they have undertaken, it does not have to be caused significant damage to the financing of socio-economic development.
· Minimize the cost of debt by lengthening the term of the debt and reduce income government securities.
· Save the state has a good reputation of the borrower due to continuous fulfillment of all obligations to investors.
· Maintain the stability and predictability of public debt.
· To achieve the most effective and efficient use of borrowed funds.
· To coordinate the actions of the subjects of the Russian Federation, local governments and federal agencies in the debt market.
· Diversify debt maturity debt, the forms of payment and other parameters with the aim to meet the needs of investors.
main problems of public debt management
· It is still not completely solved the problem of debt.In particular, it concerns the obligations of the Russian Federation on the presented its state guarantees.
· Requires completion normative regulation of public debt.
· no legally binding standards determining the volume of public external debt in accordance with international standards.
