What is the main purpose of government loans? Government loans. Structure of the country's domestic credit

State credit is the activity of the state regulated by the norms of financial law, aimed at obtaining a loan, i.e. loans, money from legal entities and citizens, as well as other states on the terms of repayment, urgency, compensation and voluntariness. As an exception, an interest-free loan of funds can be used.

In relation to other states, the Russian Federation can act as both a debtor and a creditor. In legal relations regarding a state loan, the parties cannot change state regulations.

Funds borrowed from the population, business entities and other states are placed at the disposal of state bodies, turning into additional financial resources. They can be used simply as a planned budget resource, a resource for replenishing extra-budgetary funds for special purposes, an investment resource, but as a rule, government loans in various forms are used especially intensively to cover the budget deficit.

Afanasyeva O.N. Short-term lending to enterprises: problems and possible ways solutions // Banking. 2002 9. - p. 25 - 28. The source of repayment of government loans and payment of interest on them are budget funds, where these expenses are allocated annually in a separate period 1. However, in conditions of increasing budget deficit, the state may resort to refinancing the public debt, i.e. pay off old government debt by issuing new loans. The sphere of state-credit relations includes temporarily free funds of the population and business entities, but not intended for current consumption. Of course, under certain conditions, the population can consciously limit consumption, as was the case during the Great Patriotic War. In a totalitarian state, the limitation of current spending was often forced, and the population had to subscribe to government loans amounting to several salaries, to their detriment.

In 1956, loan proceeds amounted to about 33 billion rubles, which were mainly aimed at the development of heavy industry.

Money. Credit. Banks. Textbook for Universities. Vol. 2 Lavrushin O.I. The State 3% internal winning loan of 1982 should be separately considered. It was a freely negotiable loan. It was placed as an individual cash purchase. The bonds were sold at a set (slightly increased) rate, and the purchase was carried out without restrictions on the face value of the bonds.

The real yield of the issuer's bonds is determined by the exchange rate difference, which depends on many reasons, including the nominal interest rate on the bonds, the saturation of the market with securities, the state of the economic situation, and the degree of public confidence in the government. In relation to the present moment in the current situation in our country, almost with complete absence confidence in the government, bonds must be sold at a price below par.

Thus, funds of the population, legal entities, and borrowed funds from other states can serve as a credit resource in the field of state credit.

Treasury loans can also be classified as government loans. They are expressed in the provision of financial assistance to enterprises and organizations, as well as bodies state power and management at the expense of budgetary funds, which in this case are a credit resource, on the terms of urgency, payment and repayment. In state economic activity, there is always a need to provide financial assistance to establish stable activities of those enterprises and industries in which the state is interested, and therefore the use of treasury loans in the future is not excluded. A treasury loan differs from a bank loan in that it is issued on preferential terms, has no commercial purpose, but is a means of supporting economic or government structures important to the state.

Sometimes the government can guarantee the unconditional repayment of a loan issued by a lower authority or government, and even the payment of interest on it. Here the government has guaranteed liability in the event of the payer's insolvency. However, for each case of issue by lower government bodies or individual structures of any interest-bearing or non-interest-bearing securities, the issue of their redemption must be agreed upon with the Ministry of Finance or the Government of the Russian Federation. If the issuer is not a state but a commercial structure, then the state does not bear responsibility for the issue of monetary obligations issued by it, regardless of their name - whether they are securities or not, even if the Central Bank of the Russian Federation has issued a license for the activities of these commercial structures. In this case, the license only certifies that this commercial financial or economic structure has received permission to issue such obligations and the state has verified the procedure for its formation, the amount authorized capital, the presence of reserve funds, which is a guarantee of payments on the security, but nothing more.

Legal basis of state credit.

Currently, state credit is regulated by the Law “On State Internal Debt of the Russian Federation”. According to this law, the state internal debt of the Russian Federation is the debt obligations of the Government of the Russian Federation, expressed in the currency of the Russian Federation, to legal entities and individuals, unless otherwise established legislative acts Russian Federation. Ex's debt obligations USSR are included in the state internal debt of the Russian Federation only in the part assumed by the Russian Federation.

Public domestic debt consists of debt from previous years and newly arising debt. The state internal debt of the Russian Federation is secured by all assets at the disposal of the Government of the Russian Federation.

Debt obligations of the Russian Federation can be in the form of loans received by the Government of the Russian Federation, government loans carried out through the issue of securities on behalf of the Government of the Russian Federation, and other debt obligations guaranteed by the Government of the Russian Federation.

The procedure, conditions for issuing (issuing) and placing debt obligations of the Russian Federation are determined by the Government of the Russian Federation. This activity is called public debt management.

Servicing of the state internal debt of the Russian Federation is carried out by the Central Bank of the Russian Federation and its institutions, or otherwise not established by the Government of the Russian Federation. The servicing of public internal debt is carried out 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.

Internal foreign currency debt is repaid on the basis of the Presidential Decree “On measures to settle the internal foreign currency debt of the former USSR,” which stipulates that repayment of Vnesheconombank’s debt to individuals is carried out from July 1, 2001 at the first request of clients without limiting the amount of issue within the funds available on their accounts.

To ensure the payment of debt to individuals - residents of the former USSR, use: funds from the republican budget of the Russian Federation; 100 percent of foreign exchange earnings allocated in accordance with separate decisions Government of the Russian Federation to pay off obligations to individuals; funds from the sale of assets of the former USSR, as provided for in paragraph 10 of the decision of the Interstate Council for Monitoring the Servicing of External Debt and the Use of Assets of the USSR dated May 28, 2000 (Minutes No. 11).

To ensure the succession of the Russian Federation under the obligations of the USSR to Russian enterprises and organizations, including bank institutions, the Ministry of Finance of the Russian Federation, together with the Central Bank of the Russian Federation and Vnesheconombank, was instructed to reissue these obligations by issuing government bonds in foreign currency on the following basic conditions: issuer - the Ministry of Finance of the Russian Federation; bond currency - US dollars; interest rate - 3 percent per annum; The maturity period of the bonds is from 1 to 15 years.

The state assumes full responsibility for repaying the internal foreign currency debt. It must be borne in mind that the state is responsible for all its other debts. Thus, measures have already been taken to restore and protect the population’s deposits in the savings bank, 51 percent of the shares of which belong to the state. Issues of repaying domestic debt are constantly discussed in the Duma and in the end, hopefully, will be resolved.

Basics of classification of government loans.

The main types of securities under government credit are government loans, government treasury obligations (KOs) and government short-term obligations (GKOs).

In general, government loans can be classified according to the following criteria:

By validity period Debt obligations of the Russian Federation can be short-term (up to 1 year), medium-term (from 1 to 5 years) and long-term (from 5 to 30 years). All debt obligations of the Russian Federation are repaid within the terms determined by the specific terms of the loan, but cannot exceed 30 years.

By right of issue they are divided into those issued by the central government, governments of national-state and administrative-territorial entities and bodies local government, if provided by law.

Based on subjects- loans to securities holders can be divided into:

a) sold only among the population. So, specifically for the population, a document was issued on February 19, 2000, which was called the state internal winning loan of 1982 and the release of the Russian winning loan of 2000”;

b) sold only among legal entities. An example would be a domestic government foreign currency bond loan;

c) sold both among legal entities and among the population. An example is the currently widely circulated GKOs about KOs, which the state intends to sell not only to commercial and government entities, but also to the population.

According to the form of income payment loans can be divided into:

a) interest-winning, where the owners of debt obligations of an interest-bearing loan receive a solid income annually by paying coupons or once when repaying the loan by crediting interest to the accrued face value of securities, without annual payments.

b) winning ones, where the recipient receives income in the form of winnings at the time the bond is redeemed, income is paid only on those bonds that were included in the winning draws. In addition, there are win-win loans. However, they are not currently produced in the Russian Federation;

c) interest-free (targeted) loans provide for the payment of income to bondholders or guarantee the receipt of the corresponding product, the demand for which is not satisfied at the time the loan is issued.

Loans can be divided according to placement methods. They are divided into voluntary, subscribed and forced. Currently, only voluntary loans are used.

Forced loans are used only in totalitarian states. Subscription loans are close to forced loans, so they are also not used.

The form of loans can be bonded and non-bonded. Bond loans offer the issue of securities.

Non-bonded loans are formalized by signing agreements, contracts, as well as by making entries in debt books and issuing special obligations.

All conditions of intergovernmental loans are fixed in special agreements, which stipulate the level of interest, the currency of provision and repayment of the loan and other conditions.

External bond loans on foreign money markets are placed, as a rule, by banking consortiums on behalf of the borrowing state. They charge a commission for this service.

By maturity loans are divided into short-term (repayment period up to 1 year), medium-term (up to 5 years), long-term (over 5 years). Currently, loans of all repayment terms are used. Thus, a government loan of short-term zero-coupon bonds was issued for a period of 3 months on the basis of the Resolution of the Council of Ministers of the Russian Federation dated 02/09/92; the State Internal Winning Loan of 2000 was issued for 10 years - from October 1, 2000 to October 1, 2002.

The Ministry of Finance of the Russian Federation is responsible for the production, storage and distribution of government loan bonds.

The banking system is responsible for the sale of securities. Moreover, the Central Bank of the Russian Federation carries out the primary sale of government securities, which plays a large role in the accumulation of non-inflationary funds by the state. This market is so important that by Decree of the President of the Russian Federation of February 27, 2003. The Securities and Stock Market Commission under the Government of the Russian Federation has the same legal status as a federal ministry.

The Central Bank and its local institutions carry out operations to place debt obligations of the Russian Federation, repay them and pay debts in the form of interest on them or in another form, i.e. The Central Bank of the Russian Federation is engaged in servicing the state internal debt of Russia.

Costs for placement, payment of income and repayment of debt obligations of the Russian Federation are carried out at the expense of federal budget RF.

Control over the state of public debt is carried out by representative and executive bodies of state power.

In accordance with the Law “On the State Internal Debt of the Russian Federation”. The Government of the Russian Federation publishes annually, no later than May of the current year, information on the state of public internal debt for the previous financial year.

Government loans are different from other types of loans. So, if when granting a bank loan, specific assets are usually used as collateral - goods in stock, work in progress, then when borrowing funds by the state, all the property in its ownership, the property of a given territorial unit or any of its income serves as collateral for the loan. Another distinctive feature of a bank loan is its productive use as capital, creating conditions for repayment and payment of interest on it by increasing the produced value of the surplus product. The source of repayment of the state loan, as noted, is mainly budget funds.

Like any other borrower, the state raises funds for a predetermined period: up to 1 year, from 1 year to 5 years, from 5 years to 30 years. Thus, the Budget Code of the Russian Federation No. 145FZ provides that any debt obligations of the Russian Federation are repaid within the terms determined by the specific terms of the loan, but cannot exceed 30 years.

Through the distribution function of state credit, centralized state monetary funds are formed and used on the principles of urgency, payment and repayment. Acting as a borrower, the state provides additional funds to finance its expenses - this is one side of the state credit relationship. Their other side is financial ties due to the repayment and payment of additionally mobilized funds. At the same time, the payment of income to creditors is ensured at the expense of budget revenues, and the circle of taxpayers does not coincide with the circle of holders of government securities, just as the amount of taxes contributed to the budget by each owner of securities does not coincide with the amount of income he receives from government credit operations. This means that the second side of state credit relations is redistributive in nature.

IN modern conditions revenues from government loans became the second method after taxes to finance budget expenditures. The latter is explained by the faster growth rate of expenses compared to the increase in tax revenues.

Financing capital expenditures using borrowed funds within certain limits has a positive effect. Stretching sources of financing over time by issuing loans for an appropriate period allows you to shift payments on the main loan and interest on it to all subsequent reinforcements that will use the services of facilities built by the current generation.

Thus, the positive impact of the distribution function of government credit is that with its help the tax burden is more evenly distributed over time. Taxes levied while government borrowing finances expenditures do not increase (as they would otherwise). But then, when the loans are repaid, taxes are levied not only to pay them, but also to pay off interest on the debt.

Taxes are the main, but not the only source of financing costs associated with servicing and repaying public debt. The sources of financing these expenses depend on the direction in which the funds are used. In the case of a productive investment of mobilized capital, the constructed facility, after entering into operation, begins to generate profit, at the expense of which the loan is repaid. In this case, there is no increase in tax revenues.

When the capital mobilized as a result of government loans is used unproductively, for example, to finance military or social expenditures from them, taxes or new loans become the only source of repayment. The placement of new government loans to pay off debts already issued is called public debt.

The increase in tax revenue caused by government borrowing depends on the duration of the loan and the interest paid to the borrower. The higher the profitability of a government loan for an investor, the larger part of the taxes the government is forced to allocate to repay them. The larger the debt, the higher the share of funds allocated to service it, all other things being equal.

By entering into credit relations, the state, voluntarily or unwittingly, influences the state of money circulation, the level of interest rates and capital, production and employment. By consciously using state credit as a tool for regulating the economy, the state can carry out one or another.

The state regulates money circulation by placing loans among various groups of investors. By mobilizing funds from individuals, it reduces effective demand. If production costs, such as investments, are financed through credit, there will be an absolute reduction in the cash supply of money in circulation. In the case of financing labor costs, for example, teachers and doctors, the amount of cash in circulation will remain unchanged, although the structure of effective demand may change.

Operations for the purchase and sale of government securities or the issuance of loans secured by them, carried out by the Central Bank of the Russian Federation, are an important regulatory instrument in the country. Loans secured by highly liquid government securities began to be provided by the Central Bank of the Russian Federation.

5. According to the security of debt obligations - mortgages and non-mortgages. Mortgage bonds are secured by specific collateral, such as specific property. They are most often issued by local authorities. Non-mortgage bonds are secured by all property of the state or a given municipality. Central governments usually issue non-mortgage bonds. Their reliability is exceptionally high, and therefore investors do not need any additional guarantees.

6. According to the nature of the income paid, government loans are divided into winning, interest-bearing, and zero-coupon loans. Payment of income on winning bonds is carried out on the basis of winning draws. These bonds are not in great demand. Investors strive to receive stable income rather than rely on chance. Therefore, the main type is interest-bearing bonds, the income on which is paid once, twice or four times a year based on coupons. Most investors prefer such debt instruments.

Short-term government borrowing instruments do not have coupons. They are sold at a discount from face value and redeemed at face value. Some long-term debt obligations also do not have coupons. All income on them is paid along with the amount of the principal debt. Like short-term ones, they are sold at a discount from face value and repurchased at face value. These bonds are called zero coupon bonds.

7. According to the method of determining income, state debt obligations are available with fixed or floating income. In some cases, a fixed rate on securities causes an increase in the government's interest costs, while in others it can scare away investors expecting an increase in interest rates.

To cover the budget deficit, it is necessary to place loans at a relatively high interest rate.

By setting a similar interest rate on its debt obligations for the entire loan term, which can be 20-30 years, the state will attribute additional costs to taxpayers. There are two options to avoid this situation:

Covering the need for funds through a short-term or medium-term loan and issuing (when the interest rate falls) a long-term loan. However, in this case, the borrower incurs additional costs associated with the issue, placement and repayment of another loan. It is possible that, pending an increase in interest rates, investors will not show interest in a second loan;

Systematic review of the interest paid on securities. The rate on interbank loans into the country is usually used as a base. Such loans have a big drawback - the debtor is not able to plan his expenses. But this option solves all the problems mentioned.

8. Depending on the borrower’s obligation to strictly comply with the loan repayment terms established at the time of its issue, borrowed instruments are divided into obligations: with the right of early repayment and without the right of early repayment.

The issue of early repayment of debt obligations becomes relevant only when significant changes occur in the financial market. For example, a borrower issued bonds with an annual fixed income of 12%, and a year later the rate fell to 6%. In this case, he suffers significant losses, while the investor receives significant gains. If the bonds were issued with a call option, the investor can reduce his losses by issuing and placing a new loan and paying off the old one.

There are two options for repaying debt: lump sum and in installments. If the loan is repaid in installments, depending on the distribution of the debt amount by repayment period, three options are distinguished: the loan is repaid in equal installments over a certain period, for example four years. So, if the loan amount was 100 million rubles, 25 million rubles will be paid annually; in increasing shares. For example, in the first year 10 million rubles are repaid, in the second - 20, in the third - 30, in the fourth - 40 million rubles. This system is convenient for increasing the borrower’s income. For example, in connection with the rise in business activity, an increase in tax revenues is expected, or the facility for the construction of which borrowed funds were attracted gradually gains capacity and begins to generate more and more profit; decreasing shares. For example, in the first year a debt of 40 million rubles is repaid, in the second - by 30 million rubles. etc. This system is preferable when the borrower’s income is expected to fall or his expenses will increase.

9. According to placement methods, loans are divided into voluntary, placed by subscription and forced. Each method has its own implementation method. Basically, bonds are placed on a voluntary basis and are freely sold and bought by banking institutions.

10. Government loans can be bonded or non-bonded. Bond loans are accompanied by government securities. Without bonds

are formalized by signing agreements, contracts, as well as by making entries in debt books and issuing special certificates. Currently, non-bonded loans are used at the intergovernmental level.

State internal and external debt of the Russian Federation

The functioning of public credit leads to the formation of public debt. Capital national debt represents 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 consists of expenses for paying income to creditors on all debt obligations of the state and for repaying obligations that have become due.

The state, widely using its capabilities to attract additional financial resources, gradually accumulates debt, both domestic and foreign creditors, which leads to an increase in public debt, both internal and external.

The state's activity as a borrower serves as an indicator of the state of its finances. The higher the amount of borrowing, the worse the situation with the state budget. The higher the share of public debt in GDP, the deeper the financial crisis. Russia's huge public debt, both internal and external, indicates a financial crisis in the country.

In accordance with the Budget Code of the Russian Federation, public debt refers to debt obligations of the Government of the Russian Federation to legal entities and individuals, foreign states, international organizations and other entities. Thus, it is necessary to distinguish not only state internal and external debt, but also national debt, which includes the debt not only of the Government of the Russian Federation, but also of lower-level management bodies that are part of the state.

Russia's national debt is fully and unconditionally secured by all federally owned property that makes up the state treasury. Debt obligations of the Russian Federation may be in the form of loans received by the Government, government loans or other debt obligations guaranteed by it.

Public domestic debt consists of debt from previous years and newly arisen debt. The Russian Federation is not responsible for the debt obligations of the national territorial entities of the Russian Federation if they were not guaranteed by the Government of the Russian Federation. The form of debt obligations of national-state and administrative-territorial entities of the Russian Federation and the conditions for their issue are determined independently locally.

As noted, depending on the location of placement, loans are divided into two groups: internal and external, differing in the types of borrowed instruments, placement conditions, composition of creditors, and loan currency.

Lenders for internal loans are legal entities and individuals who are residents of a given state. Loans are usually provided in local currency. To raise funds, securities that are in demand on the national stock market are issued. To further encourage investors, various tax incentives are used.

External loans are placed on foreign stock markets in the currencies of other countries. When placing them, the specific interests of investors in the host country are taken into account.

Debt obligations of the Russian Federation are repaid within the terms determined by the specific terms of the loan and cannot exceed 30 years. Changing the terms of a government loan issued in the country, including the payment terms and the amount of interest payments, as well as the circulation period, is not allowed.

IN recent years The borrowing activity of the Government of the Russian Federation in the securities market rapidly intensified, which is explained by the refusal to use loans from the Central Bank of the Russian Federation to cover the budget deficit. At the same time, high-yield securities were issued to attract funds, resulting in a paradoxical situation: the most reliable government securities are at the same time the most profitable, and, therefore, the most popular. As a result, the bulk of investors' funds involved in transactions with securities does not go into production, but to finance federal expenditures and service the domestic public debt. Thus, government credit begins to provide negative impact on economic development countries. The rapid increase in expenses associated with servicing the public debt indicates that the increase in the public debt of the Russian Federation has become a self-perpetuating process. In total federal budget expenditures, expenses related to servicing the public debt account for almost 30%, while they accounted for, although also quite a lot, but half as much.

Expenses for servicing public debt in the state federal budget are provided in the amount of 220.1 billion rubles, including 63.3 billion rubles for servicing public internal debt. and public external debt - 156.8 billion rubles.

In accordance with the Budget Code of the Russian Federation, the federal law on the federal budget for the next financial year approves the maximum volumes of state internal and external debt, the limits of external borrowings of the Russian Federation with a breakdown of debt by form. The maximum volume of state external borrowings of the Russian Federation should not exceed the annual volume of payments for servicing and repaying the state external debt of the Russian Federation.

The Government of the Russian Federation has the right to carry out external and internal borrowings in excess of the maximum volume of state external and internal borrowings established by the federal law on the federal budget for the next financial year, if at the same time it reduces the cost of servicing them within the established maximum volume of public debt.

State Duma together with the project federal law on the federal budget for the next financial year also considers the Program of state external borrowings of the Russian Federation and state loans provided to the Russian Federation, which contains a list of external borrowings of the federal budget for the next financial year indicating the purposes, sources, repayment terms, the total volume of borrowings, the volume of funds used for loan before the start of the financial year and the volume of borrowings in a given financial year. This Program must include agreements on loans concluded in previous years, if they have not lost force in the prescribed manner. In recent years, especially in the 90s, our country's public debt has increased tenfold, reaching, as noted, more than 700 billion rubles by mid-2009. (domestic debt). External public debt by this period exceeded $150 billion. Overdue payments on external debt reached $17.5 billion in 2009 (approximately $5 billion was provided for in the budget). From the end of 2008 and in 2009, the Government of the Russian Federation held negotiations with creditors on the restructuring of payments, that is, on revising the timing and procedure for paying external debts. According to the Ministry of Finance of the Russian Federation, external debts consist of loans from members of the Paris Club (40 billion dollars), the London Club, which unites approximately 600 banks (about 35 billion dollars), supplier firms (about 7 billion dollars), countries , not included in the Paris Club (about 30 billion dollars), the IMF and the World Bank (about 30 billion dollars).

The current unfavorable financial and economic situation in the country requires taking decisive measures to limit the rate of increase in public debt. This is usually achieved through an increase in tax revenues and a reduction in budget expenditures, and most importantly, through an increase in the volume and rate of development of the real sector of the economy. The measures taken by the Government of the Russian Federation to maintain and protect domestic production, strengthen the financial and credit system and monetary circulation in the country will contribute to this.

The state of public debt is also significantly influenced by the improvement of public credit management - the procedure and conditions for obtaining new loans, the size of repayments and interest paid on them.

Government Credit Management

Public credit management can be considered in a narrow and broad sense. State credit management in a broad sense refers to the formation of one of the directions of the state’s financial policy related to its activities as a borrower, lender and guarantor. Management of public credit in a broad sense as one of the areas of financial policy is in the hands of government authorities and government. They determine the total volume of the budget deficit and, consequently, the volume of loans necessary to finance it, the main directions and goals of the impact on money circulation, credit, production, employment and the feasibility of implementing national programs to support small businesses in certain regions of the country.

Public credit management in the narrow sense is understood as a set of actions related to the preparation for the issuance and placement of state debt obligations, regulation of the government securities market, servicing and repayment of public debt, provision of loans and guarantees.

In the process of managing public credit, the following tasks are solved:

Minimizing the cost of debt for the borrower;

Preventing the market from overflowing with government debt obligations and sharp fluctuations in their exchange rate;

Effective use of mobilized funds and control over the targeted use of allocated loans;

Ensuring timely repayment of loans;

Maximum solution of problems determined by financial policy.

The main share of expenses under the state credit system is the payment of winnings, annual interest, and loan repayment amounts. Expenses also include expenses for the production, delivery and sale of government securities, holding winning draws and redemption draws and some other expenses.

Loans are repaid through drawings of winnings (when the face value of bonds is also paid along with the winning amount), as well as redemption drawings for winning and interest-bearing loans, or through the repurchase of government securities from creditors. Payment of loan income is made through drawings of winnings, annual payment of coupons by banks or transferring the amount of income by bank transfer to the accounts of enterprises and organizations.

The safe level of public debt servicing is considered to be 25%. In our country, the external debt servicing ratio exceeds acceptable limits.

Measures such as conversion, consolidation, exchange of bonds at a regressive ratio, deferment of repayment and cancellation of loans are aimed at achieving the efficiency of public credit.

Conversion usually refers to a change in the yield of loans. Most often, the state reduces the amount of interest paid on loans in order to reduce the cost of managing public debt. Consolidation of public debt refers to extending the duration of already issued loans by changing the terms of the loans associated with their terms. The reverse operation is also possible—reducing the duration of government loans. Thus, in 2000, the service life of treasury bonds was reduced from 15 to 8 years. It is also possible to combine consolidation with conversion.

Usually, together with consolidation, the unification of government loans is carried out. Loan unification refers to 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 using a regressive ratio, that is, when several previously issued bonds are equal to one new bond. Such an exchange was carried out, for example, in the post-war period in order to remove wartime loans from bonds.

Deferment of loan repayment occurs during periods when the government issued too many loans and the terms of their issue were not effective enough for the state. Deferment of loan repayments differs from consolidation in that deferment not only postpones the repayment period, but also stops paying income.

In conditions of significant growth of public debt and increasing budgetary difficulties, as is currently the case, the government may resort to refinancing public debt. Refinancing refers to paying off old government debt by issuing new loans. Refinancing is actively used when paying interest and repaying the external part of the public debt.

At the same time, an indispensable condition for the provision of new loans is the high reputation of the debtor country in the international financial market, its economic and political stability.

Conversion, consolidation, unification of government loans and exchange of bonds are usually carried out only in relation to domestic loans. Deferments of repayment of obligations apply to both internal and external debt. Deferment of repayment of external loans is carried out, as a rule, in agreement with creditors.

An important area of ​​public debt management is determining the conditions for issuing new loans. In this case, important circumstances are the level of profitability of securities for creditors, the duration of loans, and the method of payment of income. When issuing loans, it is also taken into account not only the achievement of maximum financial efficiency of loans, but also the real situation in the financial market. The success of new loans depends on correct consideration of the state of the economy, money circulation, the level of profitability and terms of existing loans, the benefits provided and many other factors.

The production, storage and distribution of government loan bonds are carried out by the relevant departments of the Ministry of Finance, and the sale of securities is carried out by the banking system. External bond loans on foreign money markets are placed on behalf of the borrower state, as a rule, by banking consortiums. They charge a commission for this service. Intergovernmental loans are usually non-bonded, and all their conditions (interest level, currency of loan provision and repayment, etc.) are fixed in special agreements.

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Since, in addition to interest-free deposits, the state also attracts money on a reimbursable basis, using the form of a state loan.

In these relations, the state can act as a client, guarantor, or lender.

Important aspects

There are the following basic principles of state credit:

1. Voluntariness.
2. Urgency.
3. Payments.
4. Returnability.

A state loan differs from a bank or commercial loan in the type of collateral. Bank or market loans are secured by simple values.

When the state takes money, the loan is all of its wealth, all its inheritance and income.

When the state undertakes to repay the loan and fulfill the necessary obligations, it becomes a guarantor.

And when the borrower fulfills its obligations in a timely manner and in full, the guarantor will not have to bear extra expenses.

But in most cases, state guarantees are necessary for unreliable clients, which means that centralized financial funds have to bear the costs.

Reasons why it is difficult for the state to manage its own economic employment without a government loan:

1. The difference in time between the time the money is credited to the cash register and when it is used.
2. The presence of budgetary shortfalls may also lead to the need for government borrowing.
3. Increasing the economic focus on the social sphere, increasing investment in protecting the environment, that is, procedures that require increasing government spending.

In normal situations, a government loan is voluntary. But there are also exceptions.

For example, after the Second World War, people were forced to sign government papers, the idea of ​​which was to collect money that was intended to restart the national economy after the war.

General concepts

A loan is an amount of funds that is transferred by one party to an agreement to another party on the terms of payment, urgency and repayment.

Any economic entity can be a lender and borrower during the operation of the economic system. But the main place here is occupied by banking organizations.

It is issued on the terms of return and payment. State credit is associated with the budget deficit, being a source of covering it.

In some situations, with its help, funds can be mobilized for special-purpose funds or spruce projects.

In addition, the state credit system includes loans that are provided under government guarantees or to replenish the foreign exchange reserves of the Central Bank. Now the state acts as a borrower and lender.

Having a lot of money, the state simultaneously borrows and provides loans to other countries and clients in other countries (legal entities and individuals).

The need for a state loan lies in the imbalance of state revenues and expenses (shortage of the state budget), which is compensated by attracting credit funds.

Inflation and government debt are two methods of covering government budget shortfalls.

Depending on the client’s situation, such types of government loans are recognized as centralized and decentralized government loans.

In the first situation, government securities (shares) are issued by the government (MoF), in the other - by district authorities.

Basic forms

The form of a loan means the external manifestation of the content of those economic relations that the loan expresses.

They can be non-market and market. State guarantees for loans to organizations and institutions are also included in the state loan. They do not provide for spending the state budget while receiving loans.

But in a situation where guaranteed loans are not repaid on time, payment must be made from the state budget.

But their reasonable use helps to stabilize the formation of entrepreneurial activity and increase revenues to the state budget.

According to legal approval, government loans are divided into those issued on the basis of government agreements and secured by the execution of valuable documents.

Treaties are registered, as a rule, from the governments of other countries, international companies and material institutions. With the help of valuable documents, money is raised in the financial market.

Registration of government loans can occur in two types of securities - bonds and treasury terms(bills).

In theory and practice, government credit is divided into domestic and international government loans.

With an internal government loan, the state is usually the borrower of money, and its lenders are banking organizations, insurance organizations, etc.

In the situation of an international state loan, one of the parties to the credit transaction is the state, and it can be both a debtor and a creditor.

Legal basis

On at the moment government loans are regulated.

According to this law, the state internal debt of the Russian Federation is the credit obligations of the government of the Russian Federation, expressed in state currency.

These two laws monitor the work of all banks in Russia, as well as the activities of the Central Bank of Russia.

Features of obtaining a government loan

What are the features of relations with a state loan? The state can act both as a lender and as a borrower and guarantor.

After the end of the loan period, the state must fulfill its conditions and return the loan and the accumulated interest to the lender.

These properties of a state loan, such as operational, paid, repayable basis, intended purpose and the availability of financial security, make it similar to a bank loan.

• it is most often provided to compensate for budget shortfalls;
• financial security is everything that belongs to the country, the inheritance that is issued by its treasury, which makes it more reliable in the eyes of creditors;
• the targeted nature of this type of loan is more strict than in the case of a commercial loan;
• the source of return is taxes and other loans, and not money received as a result of business activities;
• leads to a decrease in cash circulation.

Main functions of state credit

1. Distribution.
2. Regulating.
3. Test.

These loan functions are closely related to each other, establishing the designated economic role of borrowing relations in their group.

Through the distribution function of state credit, the creation and use of centralized financial funds of the state is carried out on the nuances of repayment, efficiency and payment, and an additional influx of financial resources is ensured.

The regulatory function is manifested in the fact that the relevant entities entering into credit relations act on the state of financial circulation, the production process, employment, interest rates and financial policy.

The control function is accounting and control over the targeted and reasonable use of money raised and allocated by the state.

By acting as a credit recipient, the government provides additional cash to finance its own costs.

State credit is the main source of financing budget shortfalls.

As the experience of foreign countries with commercial economies shows, the use of a government loan to repay budget shortfalls is a more effective and correct means compared to monetary methods (for example, issuing funds).

What is meant by management

A state loan is understood as the essence of economic relations between the state and individuals and legal entities, in which the state acts as a client, lender, etc.

Government loan management can be analyzed in a narrow and broad sense.

Government loan management in a huge sense means the formation of one of the types of material policies of the state associated with its activities as a client, lender and guarantor.

Management of a state loan in a huge sense, as one of the areas of material policy, is in the possession of the authorities and state administration.

It is they who establish the volume of the budget deficit and, after that, the volume of loans needed to repay them, the main directions and goals of influencing cash circulation, borrowing, production, and employment.

Possibility of registering a target

State in order to ensure social guarantees and increasing control over the accurate and proper use of social security money.

There is an independent credit institution. State credit can be characterized as an economic and legal category.

State loan– a set of economic relations between the state represented by its authorities and management and individuals and legal entities, in which the state acts as a borrower, lender and guarantor.

In quantitative terms, the activity of the state as a borrower of funds predominates. The volume of transactions as a lender, that is, when the government provides loans to legal entities and individuals, is significantly lower. In cases where the state assumes responsibility for repaying loans or fulfilling other obligations undertaken by individuals and legal entities, it is the guarantor.

When borrowing funds by the state, all property in its ownership or in the ownership of a territorial unit serves as collateral for the loan.

The basis of a state loan is its repayment and payment (the deposited amount is returned with interest). However, government loans are distinguished by lower interest rates due to the socio-economic significance of the project being financed (development of small businesses, strategic and socially significant industries, exports).

Through the distribution function of state credit, centralized monetary funds of the state are formed and used on the principles of urgency, payment and repayment. The population pays for servicing the public debt through taxes, and the state's creditors receive income in the form of interest.

By entering into credit relations, the state influences the state of money circulation, the level of interest rates in the money and capital markets, production and employment.

The following options for influencing monetary circulation are possible:

1) an absolute reduction in the cash supply occurs if money is borrowed from individuals and used to finance investment projects of legal entities;

2) the volume of cash money supply does not change if a loan from individuals is spent on wages in the public sector, transfers to the population;

3) the volume of cash money supply increases if the state borrows from legal entities and allocates funds for payments to the population.

In general economic terms, state credit is an effective tool for industrial restructuring, production conversion, and support for domestic producers.

Depending on the goals, tools, and methods of implementation, government credit can have a positive or negative impact on the socio-economic development of the country. The control function of state credit is carried out financial structures, credit institutions, government authorities and management. The budget law for the corresponding financial year establishes maximum dimensions external and internal debt and government guarantees.

The Russian Federation mobilizes borrowed funds mainly in two ways:

1) placement of debt securities;

2) obtaining loans from specialized financial and credit institutions.

Depending on the location, a distinction is made between internal and external loans.

For subjects of borrowing relations – loans placed by central and territorial government bodies. At the central government level, government loans do not have a specific target. At the territorial level, borrowing often has a targeted purpose, for example, the construction of a road or a residential area.

By terms: short-term (up to 1 year); medium-term (1–5 years); long-term (over 5 years).

By security: mortgages (secured by specific property) and non-mortgage;

By the nature of the income paid: interest, with a zero coupon (discount, sold at a discount from the face value, and repurchased at the face value), winning.

By the nature of income: with fixed and floating income.

If early repayment is possible: with and without the right of early repayment.

By type of repayment: with a lump sum repayment and with repayment in installments.

Domestic loans are usually issued in national currency and the lenders for them are predominantly residents of a given state (individuals and legal entities).

To the extent that they can be traded on the market, domestic debt obligations are divided into:

1. market, existing in the form of issue-grade securities (freely sold and purchased). In 2005, the Ministry of Finance of the Russian Federation issued federal loan bonds (OFZ) and government savings bonds (GSO).

2. non-market, issued to finance budget debt (bills of the Ministry of Finance of the Russian Federation, debt to the Central Bank of the Russian Federation, etc.)

Subjects of the Russian Federation have the right to borrow funds from other budgets, from commercial banks or issue loans for investment purposes. Mainly medium-term and short-term subfederal securities are issued.

External loans of the Russian Federation can be divided into 4 categories.

1) Debt to commercial banks Western countries that provide loans under government guarantees or subject to insurance of loans from government agencies (the principal amount of the Russian Federation's debt ($50 billion)). This debt falls on the Paris Club, which consists of official representatives of the main creditor countries (about 2 dozen states).

2) Loans provided by commercial banks of Western countries independently, without government guarantees. This debt is regulated by the London Club, which unites creditor bankers on an informal basis (more than 600 commercial banks).

3) Debt to various commercial structures for corporate loans related to the supply of goods and payment for services.

4) Debts to international monetary and financial organizations.

External loans can be used in three forms:

1) financing investment projects and economic development (financial placement is the most effective way);

2) financing current budget expenditures and the state budget deficit, including servicing external debt (budgetary use is the most ineffective way of using external debt. Used in the Russian Federation);

3) mixed budgetary and financial placement.

The main method of regulating the external debt of the Russian Federation is its restructuring on terms acceptable to Russia - that is, drawing up a new debt repayment schedule in comparison with the original schemes (replacing short and expensive debts with long and cheap ones).

RF places on international markets capital external bond loans in the form of Russian Eurobonds. The issue of Eurobonds allows you to transfer internal debt into external debt. The cost of servicing external debt is less (in the worst case, 25% per annum) than internal debt.

Subjects of the Russian Federation do not have the right to resort to external credits and borrowings. Before the 1998 crisis, Moscow, St. Petersburg and the Nizhny Novgorod region managed to place external foreign currency loans.

As a result of borrowing activities, public debt is formed.

Public debt is the totality of government budget deficits over a certain period of time. This is the economic essence of public debt.

From a legal point of view, the state debt of the Russian Federation is the debt obligations of the Russian Federation to individuals, legal entities, foreign states, international organizations and other subjects of international law. Internal debt is the obligations of government bodies to residents, external - to non-residents.

According to the level of management, public debt is divided into public debt of the Russian Federation, public debt of a constituent entity of the Russian Federation and municipal public debt. Russia is not responsible for the debt obligations of the constituent entities of the Russian Federation and municipalities. All assessments of the situation with government borrowing include the federal government's budget debt, although when talking about public debt, one should include the debt of regional and municipal authorities.

Government debt arises from borrowing money and issuing debt. Debt repayment can be carried out through cash payments, exchange of a debt obligation for tax exemptions, refusal to pay, cancellation of debt, or acceptance of debt by another body. When managing public debt, agreements can be reached between creditors and the borrower on: 1) replacing debt obligations with other obligations; 2) consolidation of several previously placed debt obligations (unification); 3) changes in loan profitability; 4) increasing the term of the loan (consolidation) The state may defer or cancel the repayment of the loan.

State guarantee- a method of ensuring civil obligations, by virtue of which the guarantor (the Russian Federation or its subject) gives a written obligation to be responsible for the debtor’s fulfillment of obligations to third parties. The guarantor under a state guarantee bears subsidiary liability with the debtor for the obligation guaranteed by him.

The state as a guarantor:

A) guarantees the restoration and safety of deposits in Sberbank made before June 20, 1991 and state insurance organizations under personal insurance contracts in the period before January 1, 1992;

B) guarantees citizens an income and a fixed set of basic consumer goods and services within the framework of the system of state minimum social standards;

C) the Russian Federation can act as a guarantor for the obligations of constituent entities of the Russian Federation and municipalities;

D) state guarantees can be provided to legal entities on a competitive basis for highly effective investment projects.

Borrowers of federal budget funds may include:

1) budgetary institutions. They do not have the right to receive loans from credit organizations and other individuals and legal entities, with the exception of loans from the budget and state extra-budgetary funds;

2) state and municipal unitary enterprises;

3) other legal entities;

4) organs executive branch lower budgets.

Ways to ensure the repayment of a budget loan are bank guarantees, sureties, and property pledge. The return of budget funds provided to legal entities, as well as fees for their use, are equal to payments to the budget.

Budget loan – budget funds provided to legal entities or other budgets on a repayable and reimbursable basis. A budget loan is budget funds provided to another budget on a repayable, gratuitous or reimbursable basis for a period of no more than 6 months within a financial year.

Subjects of the Russian Federation also provide budget loans.

External loans – provided to foreign states, legal entities, international organizations. The debts of third countries in Russia are $140 billion. The Russian Federation offers them the conversion of debt into property in the territory of these countries, the use of foreign labor, and export supplies. Major debtors: Cuba, Mongolia, Vietnam, India, Iraq, Afghanistan, Ethiopia, Algeria, Angola.

When does the state act as a creditor?

State credit is a rather specific element of public finance. It has neither a separate financial fund (the funds mobilized with its help pass, as a rule, through the budget), nor a separate governing body. At the same time, it characterizes a special form financial relations state and therefore stands out as a separate unit. State credit, in its economic essence, is a set of economic relations between the state represented by authorities and management, on the one hand, and individuals and legal entities on the other, in which the state is the borrower, lender and guarantor. The main classical form of a credit relationship is when the state acts as a borrower of funds. As a creditor, the state, at the expense of budget funds, provides loans on a paid basis, subject to mandatory repayment, to legal and individuals am. The volume of such operations is significantly less than in the previous form. In cases where the state assumes responsibility for repaying loans or fulfilling other obligations assumed by individuals or legal entities, it is a guarantor (conditional state loan). Since government guarantees, as a rule, extend to insufficiently reliable borrowers, they lead to an increase in expenses from centralized monetary funds. In the sphere of international economic relations, the state can act as both a borrower and a lender. As an economic category, state credit combines financial and credit relations. Like cornfields financial system it serves the formation and use of centralized state monetary funds. The state loan is reverse, urgent and paid. At the same time, there are significant differences between state and bank loans, as a classic form of credit relations. The bank loan fund is used for lending to enterprises in order to ensure the uninterrupted process of expanded reproduction and increase its efficiency. Individuals can also receive loans. A distinctive feature of bank lending to business entities is the productive use of the loan fund (or for the purpose of developing the social infrastructure of production teams). The use of credit resources as capital creates conditions for repaying the loan and paying interest by increasing the cost of the additional product. When it comes to a state loan, the funds received through a state loan are placed at the disposal of public authorities, turning them into additional financial resources. They are used, as a rule, to cover the budget deficit. The source of repayment of government loans and payment of interest on them are budget funds.

Government credit is a relationship of secondary distribution of the value of the gross domestic product. Part of the profits and funds generated at the stage of primary distribution enters the sphere of state-credit relations. Usually they are temporarily available funds of the population and enterprises, however, under certain conditions, the population and work collectives can consciously limit consumption. In these cases, the source of government credit becomes funds intended for current consumption or financing the necessary production or social expenses of enterprises. Under the conditions of a totalitarian management system, such a limitation of current needs can also occur from state coercion.

The formation of additional financial resources of the state through the mobilization of temporarily free funds of the population, enterprises and organizations is one side of state-credit relations. Their other side is financial ties, conditioned by the repayment and payment of funds additionally mobilized by the state. The payment of profits to creditors is ensured, which is important at the expense of budget revenues. At the same time, the circle of taxpayers does not coincide with the number of owners of government securities. Even if we assume the impossible that the contingent of taxpayers coincides with the contingent of securities owners, then in this case structural discrepancies will be observed: the amount of taxes that each securities owner contributes to the budget does not coincide with the amount of profits he receives from state credit operations. This means that the other side of state-credit relations is redistributive in nature.

The objective need to use state credit to meet the needs of society is due to the constant discrepancy between the magnitude of these needs and the state’s ability to satisfy them using budgetary funds. Regulation of the economy, social policy of the state, and the fulfillment of its functions regarding the country's defense and management require a constant increase in budget expenditures. The international activities of the state also require considerable funds. However, state budget revenues are always limited. Therefore, if the population, enterprises and organizations have free financial resources, authorities resort to government loans.

The feasibility of using government credit to generate additional financial resources of the state and cover the budget deficit is determined by the significantly smaller negative consequences for public finances and the country's monetary circulation compared to foreign exchange techniques (for example, issuing money) to balance government revenues and expenses. This is achieved by shifting demand from individuals and legal entities to government agencies without increasing aggregate demand and the amount of money in circulation. The purpose of a state loan is primarily that it is a means for the state to mobilize additional financial resources. In the event of a state budget deficit, additional mobilized financial resources are used to cover the difference between budget expenditures and revenues. In the case of a positive budget balance, funds mobilized through government loans are used directly to finance economic and social programs. This means that State credit, being a means of increasing the financial capabilities of the state, can become an important factor in accelerating the socio-economic development of the state. State credit is also a source of increasing the profits of securities redeemers, which is achieved through the payment of interest and winnings on government loans. State credit as a financial category performs three functions: distribution, regulation and control.

Through the distribution function of state credit, the formation of centralized monetary funds of the state or their use on the principles of stringency, payment and return is ensured. As a borrower, the state mobilizes additional funds to finance its expenses. In industrialized countries, government loans are the main source of financing the budget deficit and occupy second place (after taxes) in the formation of budget revenues.

The essence of the regulatory function of state credit is that, by entering into a credit relationship, the state influences the state of money circulation, the level of interest rates in the money and capital market, production and employment. The state regulates money circulation by placing government bonds among different groups of investors. By mobilizing funds from individuals, the state reduces their effective demand. Then, if production costs, such as investments, are financed through credit, there will be an absolute reduction in the cash supply of money in circulation. In case of financing the payment costs wages, for example, teachers, doctors, the amount of cash in circulation will remain unchanged, although a change in the structure of effective demand is possible. By acting in the financial market as a borrower, the state increases the demand for loan resources and thereby contributes to an increase in the price of credit. The higher the demand for available funds from the state, the higher will be, other things being equal, the level of loan interest, the more expensive it will be for entrepreneurs bank loan. The high cost of loan funds forces businessmen to reduce investments in the production sector, at the same time it stimulates accumulation in the form of the acquisition of government securities. As a lender and guarantor, the state can positively influence production and employment. In industrialized countries, a widespread system of supporting small businesses, exporting products or manufacturing in certain areas where there is a decline, through the state guaranteeing the repayment of loans provided by banks under government programs. Support for small businesses provides that the state undertakes to repay debts to banks for loans provided to small businesses in the event of their bankruptcy. Most industrialized countries have government or semi-government insurance companies, which insure the risk of non-payment to exporters of national goods at low rates. This encourages the development of new markets for national products. Great value in stimulating the development of production and employment have loans that are provided by the state at the expense of budgets or extra-budgetary funds. With their help, the accelerated development of the corresponding regions or the necessary areas of the economy in one or another territory is ensured. The control function of public credit is organically intertwined with the control function of finance. However, it has its own specific features, born of features this category:

• 1) this function is closely related to the activities of the state and the state of the centralized fund of funds;
• 2) covers the movement of value bilaterally, since it provides for the return and reimbursement of funds received;
• 3) is carried out not only by financial structures, but also by credit institutions.

Control extends to both the attraction of borrowed funds and their repayment. Basically, the intended use of funds, the timing of their return and the timely payment of interest are controlled.

State credit can be internal and external. Internal government credit appears in the following forms: government loans, conversion of part of the population's deposits into government loans, borrowing from the national loan fund, treasury loans, guaranteed loans. Government loans as the main form of internal government credit are characterized by the fact that temporarily free funds of the population, enterprises and organizations are attracted to finance public needs through the issue and sale of bonds, treasury obligations and other types of government securities. A bond is the most common type of government security. It symbolizes a government debt obligation and gives its owner the right, after the expiration of a certain period, to receive back the amount of the debt and interest. By selling a bond, the state undertakes to repay the amount of the debt within a certain period of time with interest or to pay interest throughout the entire term of use of the borrowed funds, and after the expiration of this period to return the amount of the debt. The state sets the nominal value (nominal price) of bonds. The face value is noted on the bond and expresses the amount of money provided by the owner of the bond to the state for temporary use. It is this amount that is paid to the owner of the bond at the time of maturity and interest is accrued on it. However, the real profitability of bonds for their owners may be higher or lower than the established nominal interest. This is due to the fact that bonds are sold at a market price, which is rejected from their face value. Deviations are called exchange rate differences, and they depend on a number of factors. These numbers, in particular, include the value of the nominal interest on the bond, the saturation of the market with government securities, the state of the economic situation, and the level of public confidence in the government. By its essence, government loan bonds are a special form of fictitious capital. In fact, if the source of income for enterprise securities is the newly created value, then interest on government securities is paid from budget revenues, since funds received from government loans, as a rule, are not invested in production, but go to finance the budget deficit. Investors in government securities become owners of a portion of future tax and non-tax revenues to the state budget. This is the specificity of state fictitious capital, which ultimately leads to an increase in the tax burden. Therefore, the essence of a government loan can be defined as a tax taken knowingly. Treasury obligations (bills) have the nature of a debt obligation aimed only at covering the budget deficit. Payment of income is carried out in the form of interest. Treasury bonds are usually issued short term loans(sometimes medium-term - treasury notes). Closely related to government loans is the second form of government credit, the functioning of which is mediated by a system of savings institutions. Unlike the first form of state credit, when physical and legal entity they buy securities using their own temporarily available funds; savings institutions provide loans to the state using borrowed funds. The presence of an intermediary between the state and the population in the person of savings institutions and the provision of loans by the latter to the state at the expense of borrowed funds without the knowledge of their real owner (the population) make it possible to distinguish these relations as a special form of state credit. The conversion of part of the population's contributions into government contributions intended for the needs of the state is carried out through the purchase of special securities (for example, treasury savings certificates) or market securities (bonds, treasury obligations), as well as the issuance of non-bonded loans. In our country, this is immediately achieved through the acquisition of government securities by Sberbank. The state's use of borrowed funds as a form of state credit is characterized by the fact that state credit institutions directly (without limiting these operations to the purchase of government securities) transfer part of the credit resources to cover government expenses. This form of government credit functions in a totalitarian society. It contributes to the development of inflationary processes, which are especially dangerous in conditions of strict control over the issue of banknotes by democratically elected bodies. Therefore, complete normalization of relations between the state and credit system lies in the way of recognizing the impossibility of directly borrowing loan funds to cover the budget deficit and reimburse the state bank for the debt that was incurred in previous years.

Treasury loans as a form of government credit express relations from the provision of financial assistance to enterprises and organizations by public authorities and management at the expense of budgetary funds on the terms of urgency, payment and repayment. In our country, this form of state credit is not yet used very actively. Relations through treasury loans are not an analogue of bank lending, since, unlike self-supporting banking structures State authorities and management provide financial assistance on other terms and for other purposes. Treasury loans are issued on preferential terms, which relate to terms and interest rates. They are possible in the event of financial difficulties of enterprises and business organizations through them a special position in the market or a deterioration in the economic situation in the country. Treasury loans do not have a commercial purpose, but are a means of maintaining economic structures vital to the national economy. In some cases, the government can guarantee the unconditional repayment of loans issued by government authorities and lower-level management or individual economic organizations, as well as the payment of interest on it. In these cases, we are talking about a conditional government loan - guaranteed loans. The government is actually responsible for guaranteed loans. financial responsibility only in case of insolvency of the payer. In our country, conditions have been created for the revival of guaranteed loans in connection with the provision of local authorities, as well as individual economic structures, with the right to conduct operations regarding the conclusion of loans.

International public credit is a set of relations in which the state acts in the global financial market as a borrower or lender. These relations take the form of government external loans. Like internal loans, they are provided on the terms of repayment, urgency and payment. The amount of external loans received with accrued interest is included in the country's public debt. For countries that are experiencing significant economic and financial difficulties, external loans may be provided on preferential terms. The main purpose of government external loans is to help strengthen economic potential, overcome the financial difficulties of the recipient country, and provide food assistance.