Public Debt Management - a system of financial measures undertaken by the state to repay loans and interest payments on these loans, changes in the terms and conditions of outstanding loans, release the next debt.This is one of the priority areas of financial policy.
In making decisions on the choice of methods of debt management affect mainly the following factors: the proportion of the cost of debt service to total budget expenditures and percentage of GDP and the amount of government borrowing.
In evaluating external debt ratios are used the amount of external loans and the volume of exports and the share of expenditures going to pay off the foreign debt to the sum of earnings from exports.
Public Debt Management - it is a continuous process in which the series is divided into three steps: 1 - placement of securities in order to attract financial resources, 2 - the repayment of public debt, 3 - debt service.
repay the debt from the budget, foreign exchange reserves, the money obtained from the sale of state property, as well as through new borrowing.
Public debt management includes two large groups of methods : financial and administrative.
Financial methods is to select the forms and ways in which the State will repay the debt, taking into account financial performance.They are aimed at achieving the ultimate effectiveness of borrowing and finding information costs associated with their repayment, to a minimum.
Administrative methods are based on the rapid implementation of the orders of public authorities.These functions are not included evaluation of the effectiveness and efficiency of actions relating to the management of public debt.
main measures resorted to by the state in the management of public debt, reduced to the following activities.
In the face of rising debt and the budget deficit country has the right to resort to such an extent as the refinancing of the public debt - issue new loans to repay old debts.
Conversion - this change in the state of return existing loans.As a rule, the state has resorted to a decrease in the size of payments on the loan as a percentage to reduce the costs carried by the management of public debt.
Consolidation - involves changes in the conditions of loans related to their terms.Their change usually occurs upwards.
Unification loans - union into one of several existing loans.This previously issued bonds are exchanged for new ones.Often unification carried out together with the consolidation.
cancellation of public debt - a drastic measure, in which the state waives all liabilities related to the loan issued.
Public Debt Management in Russia in recent years is characterized by a gradual decrease in the relative and absolute indicators of public debt.Reduced percentage of the value of debt to GDP at face value.
Public Debt Management provides The Russian government , in the framework of its powers vested, which are set by the Federal Assembly of the Russian Federation.
It lies in the formation of policy in relation to the national debt, the delimitation of the debt, setting goals and directions of the impact on the performance of micro- and macro-level, establishing feasibility of financing the national debt by national programs.This is implemented through a system of measures which are related to the issue of debt and its further maintenance.This requires an integrated approach of state authorities and regulatory diversity defines emerging debt.
