State and municipal debt. State and municipal debt: essence and main forms State municipal debt

State debt- obligations arising from government loans (borrowings) assumed by the Russian Federation, a subject of the Russian Federation, guarantees for the obligations of third parties, other obligations, as well as obligations of third parties assumed by the Russian Federation, a subject of the Russian Federation.

National debt can be classify according to various criteria:

1. According to the currency criterion, it is divided into internal (ruble) and external (currency). In international practice, there is another definition of external debt: total debt to non-residents, and internal debt as total debt to residents.

2. Depending on the maturity date, public debt is divided into principal and current. The main public debt is the entire amount of the state's debt for which payment has not come due and which cannot be presented for payment during a given period, that is, it is the sum of the issued and outstanding debt obligations of the state, including interest. Current public debt is the state's debt for obligations for which payment has become due, that is, these are the costs of paying income and repaying obligations;

3. In terms of terms, public debt can be short-term (up to 1 year), medium-term (from 1 to 5 years) and long-term (from 5 to 30 years).

4. According to the level of management, debt is divided into public debt Russian Federation, public debt of the constituent entities of the Russian Federation and municipal public debt. At the same time, Russia is not responsible for the debt obligations of the constituent entities of the Russian Federation and municipalities. Subjects of the Russian Federation and municipalities are not liable for each other's debts and for the debts of the Russian Federation if they were not guaranteed by them.

Debt obligations of the Russian Federation

1) loans raised on behalf of the Russian Federation as a borrower from credit organizations, foreign states, including targeted foreign loans (borrowings) of international financial organizations, other subjects of international law, foreign legal entities;

2) government securities issued on behalf of the Russian Federation;

3) budget loans attracted to the federal budget from other budgets of the budget system of the Russian Federation;

4) state guarantees of the Russian Federation;

5) other debt obligations.

Debt obligations of a constituent entity of the Russian Federation can be carried out in the form of obligations for:

1) government securities of a constituent entity of the Russian Federation;

2) budget loans attracted to the budget of a constituent entity of the Russian Federation from other budgets of the budget system of the Russian Federation;

3) loans received by a constituent entity of the Russian Federation from credit organizations, foreign banks and international financial organizations;

4) state guarantees of the constituent entity of the Russian Federation.

Debt obligations of the municipality can be carried out in the form of obligations for:

1) securities of a municipal entity (municipal securities);

2) budget loans attracted to the local budget from other budgets of the budget system of the Russian Federation;

3) loans received by the municipality from credit organizations;

4) guarantees of the municipality (municipal guarantees).

Public debt management- this is a set of government measures to pay income to creditors and repay loans, to change the terms of already issued loans.

Purpose of public debt management– optimization of costs associated with financing the state budget deficit.

Basic principles of public debt management:

1. The principle of unconditionality assumes that the state undertakes to unconditionally fulfill all obligations to investors and creditors when concluding a contract for borrowing funds.

2. The principle of unity consists in taking into account in the process of managing public debt all types of obligations issued by both sovereigns and constituent entities of the Russian Federation.

3. The principle of risk reduction provides for the placement and repayment of loans in such a way as to minimize the impact of fluctuations in the world capital market and speculative market trends valuable papers to the government bond market.

4. The principle of optimal structure involves maintaining an optimal structure of debt obligations in terms of circulation and repayment periods.

5. The principle of maintaining financial independence is based on maintaining an optimal structure of state debt obligations between resident investors and non-resident investors.

6. The principle of transparency provides for maintaining openness when issuing loans, ensuring access of international rating agencies to reliable information about economic situation in the country to maintain a high credit reputation and rating of the borrowing country.

Forms of management:

Conversion is a unilateral change in loan yield;

Increasing the validity period and changing the conditions for issuing loans;

Combining several loans into one;

Unification - exchange of bonds under a regressive agreement, i.e. several strict loan bonds are equivalent to one new bond;

Deferment of loan repayments;

Cancellation government debt– refusal of the state from all obligations on previously issued loans;

Debt restructuring is a change in the debt structure.

These forms of debt management are both internal and external. However, external debt management has its own specifics, since excessive growth of a country's external debt leads to bankruptcy of the country.

Its classification

Attracted state and municipal borrowings form state and municipal debt. The provision of guarantees for the obligations of other borrowers by authorities and local governments also leads to an increase in debt obligations. Therefore, state and municipal debt represents debt obligations arising from borrowings and guarantees provided by authorities and local governments for the obligations of other persons.

IN general view state and municipal debt can be defined as debt obligations of authorities state power and local governments to individuals and legal entities (residents and non-residents), foreign states, international organizations and other subjects of international law, including obligations under the provided state and municipal guarantees.

State and municipal debt expresses the result of relationships between government bodies and local governments with their partners in terms of the formation of funds of borrowed funds to meet national (including local) needs and the reproductive needs of business entities (in terms of guaranteeing their borrowings). Its dynamics are characterized by a number of quantitative parameters reflecting certain processes in its movement, and the state on a certain date is the total amount of outstanding debt obligations.

Classification of state and municipal debt can be carried out according to various criteria. The following are usually used: economic indicator (degree of coverage of the totality of obligations), type of borrower, form of debt obligations, maturity of debt obligations, borrowing market, type of lender, borrowing currency, official (budget) indicator.

Depending on the extent of coverage of the totality of obligations (on an economic basis), state and municipal debt is divided into capital, main and current. Capital debt represents the entire amount of debt obligations issued and outstanding by government and local governments and the obligations of others guaranteed by them, including interest payable on these obligations. Main debt - It is the face value of all debt issued and outstanding by the government and the borrowings of others it guarantees. Current debt constitute the upcoming expenses for the payment of income to creditors for all debt obligations assumed by the authorities, and for the repayment of obligations for which payment has come due.

According to the type of borrower, the debt is divided, for example in Russia, into state debt of the Russian Federation, state debt of the constituent entities of the Russian Federation and municipal debt. The public debt of the Russian Federation consists of debt from previous years and newly arising debt obligations, taking into account the fact that debt obligations former USSR are included in Russia's debt only to the extent assumed by the Russian Federation.

The debt of state authorities and local governments can exist in the form of state and municipal loans, loan agreements and agreements, agreements and agreements on obtaining budget loans and budget credits from budgets of other levels of the budget system of the Russian Federation, agreements on the provision of state and municipal guarantees, agreements and agreements, including international ones, on the prolongation and restructuring of debt obligations of previous years (Articles 97-100 of the Budget Code of the Russian Federation).

By maturity, debt obligations are divided into short-term(up to one year), medium term(over one year to five years), long-term(over five years). In Russia, the maturity of debt obligations is limited for the Russian Federation and a constituent entity of the Russian Federation to thirty years, and for a municipal entity - ten.

Depending on the borrowing market, the type of lender, or the currency of borrowing, government debt may be internal and external. Russian budget legislation bases the division of debt into internal and external parts on the basis of the currency in which debt obligations are denominated. However, the International Monetary Fund and economically developed countries divide debt depending on the type of creditor (resident or non-resident) and the borrowing market (domestic or foreign market).

In the Russian Federation there are now two types of budget classification of debts: one - in relation to domestic debt, the second - in relation to external debt and external assets. As part of state and municipal internal debt, its individual types are distinguished according to the following criteria: type of loan, type of security, underfunding from the budget as the basis for recognizing debt, source of borrowing, type of debt activity, form of debt obligations.

Depending on the type of loans For example, such types of debts are distinguished as a target loan in 1990, a state internal loan of the Russian Federation in 1991, and a state savings loan.

By type of securities In particular, the following debts are distinguished: treasury bills, government short-term bonds, government treasury bills.

Underfunding from the budget became the basis for the emergence, for example, of such independent types of debt as debt for the agro-industrial complex, reissued as bills of exchange of the Ministry of Finance of the Russian Federation; debt to finance the costs of forming a mobilization reserve, reissued as promissory notes of the Ministry of Finance of the Russian Federation; debt to enterprises of the fuel and energy complex and other industries.

By sources of borrowings The internal debt includes, for example, debt on avalized bills of exchange to Agroprombank.

Depending on the type of debt activity debts such as government guarantees are highlighted; state guarantees provided by constituent entities of the Russian Federation; municipal guarantees.

Finally, in the form of debt obligations credit agreements and contracts concluded on behalf of the Russian Federation are distinguished as independent types of internal debts; credit agreements and contracts concluded on behalf of a constituent entity of the Russian Federation; loan agreements and contracts concluded on behalf of the municipality.

State external debt and state external assets are grouped according to the following criteria: the nature of state credit activity, the subject of credit activity, the type of lender or borrower, the form of debt obligations and the type of loan.

As a result of the consistent application of these characteristics, Russia’s debts include: state external debt of the Russian Federation, external debt of a constituent entity of the Russian Federation, external debt to the Russian Federation. At the same time, external loans attracted by the Russian Federation are divided into: loans from foreign governments, loans from foreign commercial banks and firms, loans from international financial organizations, loans from the Central Bank of the Russian Federation. For constituent entities of the Russian Federation, the possibility of attracting loans from foreign governments and the Bank of Russia is not provided.

Government external loans of the Russian Federation are divided into Eurobond loans and internal government foreign currency loan (bonds of this loan were classified as external debt for the first time as of January 1, 1999), and external loans of a constituent entity of the Russian Federation are represented by government securities of constituent entities of the Russian Federation, denominated in foreign currency .

Finally, external debt to Russia, depending on the type of borrower, is divided into the debt of foreign governments and the debt of foreign commercial banks and firms.

Public management

And municipal debt

State debt, like finance in general, can be a tool and object of management. As management tool state and municipal debt provides the opportunity for state authorities and local governments to influence money circulation, the financial market, investment, production, employment, the population’s organization of their savings and many other economic processes.

When state and municipal debt acts as control object, the state determines the relationship between various types debt activities (borrowings and guarantees), the structure of types of debt activities by maturity and profitability, the mechanism for constructing specific loans and guarantees, the procedure for issuing and circulation of loans, the procedure for issuing guarantees and fulfilling financial obligations under them. Authorities and local governments establish all other necessary practical aspects of the functioning of state and municipal debt.

In the process of managing state and municipal debt, the following general issues are resolved: tasks:

Attracting state and municipal borrowings in volumes that supplement the income of state authorities and local governments to the extent necessary and sufficient to ensure the fulfillment of all their financial obligations;

Maintaining the amount of internal and external debt at a level that ensures the preservation of economic security countries;

Minimizing the cost of debt by extending the borrowing period and reducing the yield of government and municipal securities, moving to other markets and shifting attention to other groups of investors;

Preserving the reputation of the Russian Federation as a first-class borrower based on the impeccable fulfillment of financial obligations to investors;

Maintaining stability and predictability of the debt market;

Achieving effective and targeted use of funds borrowed by state authorities and local governments, and borrowings guaranteed by them;

Diversification of debt obligations by borrowing terms, profitability, forms of income payment and other parameters to meet the needs of different groups of investors;

Coordination of actions of federal government bodies, government bodies of constituent entities of the Russian Federation and local governments in the country’s debt market.

Thus, the management of state and municipal debt represents a set of activities of state authorities and local governments to use debt relations to create favorable macroeconomic conditions for the development of the country and its individual territories.

There are strategic and operational management of state and municipal debt. Future issues of debt management are within the competence of the Federal Assembly of the Russian Federation, the President of the Russian Federation and the Government of the Russian Federation, legislative (representative) and executive authorities of the constituent entities of the Russian Federation and local governments. Executive authorities are preparing draft laws and decisions related to management strategies debt relations. Federal Assembly RF, legislatures the state authorities of the constituent entities of the Russian Federation and representative bodies of local self-government accept them, and the President of the Russian Federation and the heads of regional bodies of state power and local government bodies reject or sign them.

In particular, every year the federal budget law sets maximum amounts of state internal and external debt; sources of internal financing of the budget deficit, including proceeds from the issue of government securities; maximum amount of external borrowings; expenses for servicing government internal and external debt; upper limits of state internal and external guarantees. On the recommendation of the Government of the Russian Federation, the State Duma of the Russian Federation approves the program of state external borrowings of the Russian Federation and the program of state internal borrowings of the Russian Federation.

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

Similar issues are resolved within the framework of their competence by the executive bodies of state power of the constituent entities of the Russian Federation and local governments. In doing so, they proceed from the norms of federal legislation.

In the management of state and municipal debt, five management stages can be distinguished, at each of which specific tasks are solved.

On first stage the process of substantiating the maximum volumes of internal and external debt, the maximum volumes of internal and external borrowings, the maximum volumes of guarantees is underway, and internal and external borrowing programs are being formed. It is at this stage that the size of the future total debt burden is laid down, including separately for internal and external debt, and the types of upcoming borrowings.

On second stage a program for the issue of state and municipal securities is formed and specific parameters of upcoming borrowings are determined in terms of circulation periods, the level of probable profitability, the procedure for paying income, restrictions on owners, the placement procedure and other conditions that make each borrowing attractive to investors - residents and non-residents. The quality of work performed at this stage determines, in particular, the presence or absence of “peaks” in debt payments in the future, as well as the timely receipt of resources to repay previously made borrowings in the order of their refinancing.

On third stage placement of bonds and regulation of quotes for state and municipal debt obligations on the secondary debt market is carried out. The impact on quotes for government and municipal bonds makes it possible to regulate the budgetary efficiency of borrowings and the amount of current (domestic and external) debt.

Fourth stage is associated with the implementation of activities, the need for which is determined by the presence of problem debts or crisis debt situations characteristic of the period of development of the Russian Federation after the collapse of the USSR. If the government is unable to service and repay its debts, then it enters into negotiations with creditors to revise payment schedules and debt repayment periods. As a result of negotiations, the parties may come to an agreement on deferment of payments, debt restructuring, partial or complete debt write-off, early redemption of obligations, securitization, etc.

Fifth stage involves the execution of initial or adjusted payment schedules for servicing and repaying state and municipal internal and external debts.

Thus, under management of state and municipal debt should be understood as a set of measures to regulate its volume and structure, determine the conditions and implement new borrowings, regulate the borrowing market, implement measures to manage problem debts, service and repay debt, provide state and municipal guarantees, control effective use borrowed funds.

There is an urgent question about efficiency of state and municipal debt management, which is understood as the degree to which the main parameters of the debt have been achieved (its size, structure, cost of servicing, etc.) and the ability of the authorities to keep them at a level that is most favorable for the formation of macroeconomic conditions that stimulate the acceleration of the country’s development and the growth of the well-being of its citizens.

There is no and, apparently, there cannot be a single indicator measuring the effectiveness of state and municipal debt management, since, by carrying out this activity, authorities have a direct impact on a wide variety of areas public life. For example, there are no methods for assessing the impact of debt on the budget and monetary circulation of the country, the investment process, the degree of public confidence in the financial activities of the state, etc.

However, aspects of debt management performance can be measured. In particular, the scale of mobilization of resources to finance the budget deficit is indicated by the annual receipts of funds from state and municipal borrowing. A more complete picture of the effectiveness of debt activity is given by the ratio of the amount of excess receipts over expenses for attracting state and municipal borrowings to the amount of expenses, expressed as a percentage.

Most overall indicator The debt burden is the ratio of government debt to GDP, expressed as a percentage. The same indicator, if a more in-depth analysis is necessary, is calculated separately for internal and external debt.

Also important for characterizing the debt burden is the ratio of payments for repayment and servicing of public debt to the volume of GDP, to revenues or expenses of the federal budget, expressed as a percentage. These indicators, if necessary, are calculated separately for internal and external debt.

The external public debt is used to determine its servicing ratio. It represents the ratio of all payments on external debt to the country's foreign exchange earnings from the export of goods and non-factor services, expressed as a percentage. The critical level of external debt servicing is considered to be reaching a ratio of 25%.

Management methods state and municipal debt can be divided into administrative and market. Methods characteristic primarily of administrative approaches to debt management include, in particular, conversion, consolidation, unification, deferment of repayment, debt write-off, debt cancellation, etc. Management methods characteristic of market Debt regulation models include primarily restructuring, additional placement of bonds, debt repurchase, securitization, debt exchange, etc.

A characteristic feature of the administrative approach to debt management is the unilateral adoption of a management decision by the issuer (without obtaining the prior consent of creditors), and for the market model of debt management - the negotiation process that precedes the adoption of a management decision and during which the positions of the debtor and creditors are agreed upon; or the issuer unilaterally influences the government debt market, and creditors voluntarily (guided by their own interests) decide whether to accept new conditions proposed by the issuer.

The short-term nature of Russian debts and the high cost of borrowing in last years forced the state to constantly worry about lengthening the terms and reducing the profitability of new borrowings. This is achieved, in particular, on the basis restructuring debt, which means an agreement-based termination of debt obligations constituting state or municipal debt, with their replacement by other debt obligations providing for other conditions for servicing and repaying obligations.

In contrast to debt restructuring carried out by authorities on a market and voluntary basis, during the period of the administrative-command system of economic management, increasing the terms and reducing the cost of public debt was achieved through conversion and consolidation. For creditors they were of a compulsory nature. Under conversion was understood as a change in profitability, and by consolidation - increasing the service life of issued loans. By decision of government authorities, debt conversion and consolidation could be combined with unification loans, which meant the combination of several previously issued loans into one new one. In this case, bonds of unified loans were exchanged for newly issued bonds, and the yield and repayment terms of the new loan changed in the direction desired by the state.

In the field of external borrowings, debt restructuring is also carried out on a contractual basis. Here, restructuring means changing the schedule for repaying the principal debt and paying interest on it. Restructuring of external and internal debt can be carried out with partial write-off(reduction) of the principal amount.

In the context of limited funds from budgets at all levels, the issues of finding sources for current and future payments for servicing and repaying internal and external debts are still acute. The main method of obtaining funds to repay loans is refinancing debt, which refers to the repayment of accumulated debt by placing new loans. If it is impossible to refinance the debt, budget revenues are used to pay it off.

Loan repayment carried out by repurchasing (early repurchase is possible) bonds from investors, holding drawings of winnings on winning loans, conducting repayment drawings on winning and interest-bearing loans, debt amortization (repayment of debt in installments).

Payment of income is made when repurchasing discount bonds from investors in the form of the difference between the repurchase price and the placement price of the loan, through quarterly (semi-annual or annual) payment of coupons or payment of winnings on bonds included in the circulation.

In addition to these methods of managing state and municipal debt, it is possible exchange of bonds according to regressive ratio(several previously issued loan bonds are equal to one new one), deferment of loan repayment, cancellation of public debt.

Countries with market economy under normal conditions, they do not use these methods of debt management, since their use leads to irreparable damage to the reputation of the state as a borrower. In the history of public debt, their implementation was observed only in conditions of war, post-war economic recovery, or severe fiscal crises.

The difficulties of many countries in repaying external debt have given rise to new methods of covering liabilities to creditor countries. Among them are repayment of debt with commodity supplies, 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 managing public external debt 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.

Great importance to increase the efficiency of public debt activities will have the creation unified system for managing public debt of the Russian Federation. It will ensure the implementation of a centralized and long-term policy for managing liabilities and government borrowing, preventing possible debt crises and taking prompt measures to overcome them. Organic interaction in the management of internal and external debt, ensuring their unhindered mutual substitution based on the implementation of a unified debt policy, unity of planning and accounting of all operations to attract, service and repay external and internal government borrowings will allow:

Optimize the terms of circulation, repayment and the level of profitability of government securities;

Minimize the adverse impact of foreign currency fluctuations and interest rates in international financial markets on the amount and cost of government borrowing;

Optimize budget expenditures for servicing public debt;

Timely and fully fulfill obligations to internal and external creditors.

Optimization of the structure of public debt based on the creation effective system management will strengthen creditors' confidence in the Russian state as a reliable borrower, ensure full and beneficial participation of the state in the domestic financial market and effective entry into the external borrowing market in the near future, and create more favorable conditions for the implementation of a policy of reducing the debt burden on the country's economy.

Control questions

1. What is the primary budget deficit?

2. What is the difference between a structural deficit and a cyclical one?

3. What are the internal and external sources of financing the budget deficit?

4. Indicate the characteristics of the classification of government borrowings.

5. What is official external debt?

6. What are the differences between core, capital and current government debt?

7. Briefly describe the main stages of public debt management.

8. What is the fundamental difference between the methods characteristic of administrative and market models of public debt management?

9. Describe the methods of payment of income on government debt obligations.

10. What advantages can the transition to a unified system for managing external and internal public debt provide?

Tasks for independent work

1. What are the characteristics of the attitude of supporters of modern theories of use public finance to stimulate economic growth (“functional finance”, “compensation budget”, etc.) to the policy of achieving annual equality of income and expenditure, pursued by governments in the period up to the 30s. of the last century, when the ideas of J. Keynes dominated? Explain the reasons for this attitude.

2. Compare the content and consequences of covering the budget deficit through government borrowing and monetary emission. Draw conclusions.

3. Explain the reasons for the use of two budget classifications in relation to external and internal public debt. Justify the possibilities of combining the two classifications.

The conditions for repaying municipal debt are established when applying for a government loan and are limited to a period of ten years.

The municipality's obligations are represented by lending agreements, securities, budget loans, and guarantee agreements.

Municipal debt is controlled by articles of the Budget Code (BC) of the Russian Federation. According to the document, representatives of government agencies bear full responsibility for the timely payment of accepted obligations and sell assets that make up the treasury of the municipality. For example, to pay off a budget loan, a plot of land, an industrial building or structure is sold.

Stages of managing municipal obligations

The administration of a municipal entity (city, settlement, district) generates budget revenues, promptly services (pays interest) and repays the debt, using professional powers.

Managing municipal debt consists of four steps.

1. Calculation of the maximum amount of debt obligations, choosing a loan program and agreeing on payment terms. These parameters depend on the level of budget income, the purpose of raising borrowed funds, and the source of financing. For example, budget loans are issued for the implementation specific tasks: repair engineering communications, construction of schools and kindergartens, improvement of residential areas.
2. Issue and placement of debt securities on the secondary market. Municipality employees calculate the terms of circulation of state-issued bonds, predict the level of profitability of securities, carry out the issue, and control quotes. Issue standards are controlled by Federal Law No. 126, which describes the financial aspects of local government in the Russian Federation. The placement of financial instruments is carried out by an authorized bank that has entered into an agreement with government agencies.
3. Analysis of the effectiveness of repaying municipal debts. According to the requirements of the Budget Code of the Russian Federation, the volume of financial obligations should not exceed 15% of all budget expenses. If problems arise with repaying the debt on time, the municipality negotiates a revision of payment schedules or restructuring.
4. Payment of interest and principal according to an approved or revised schedule.

According to Article 107 of the Budget Code of the Russian Federation, the maximum amount of debt of a municipal entity should not exceed the amount of revenue of the corresponding budget. The permissible amount of financial liability is calculated at the time of adoption of the municipal budget for the next year.

Municipal Debt Management Tools

Local government officials manage financial obligations using four tools.

1. Refinancing is a procedure for attracting new loans to cover existing financial obligations.
2. Conversion is a revision of the interest rate on issued securities placed on the market.
3. Consolidation is a review of the validity period (up to cancellation) of municipal loan bonds presented on the market. The procedure is carried out with the consent of creditors in accordance with Articles 414 and 818 Civil Code RF.
4. Unification is the issue of a new type of security instead of several types of previously offered loans.

According to the Budget Code of the Russian Federation, municipal debts are reviewed at the beginning of the financial year; agreements on prolongation and (or) restructuring concluded in the previous period are unacceptable.

In order to most fully reveal the essence and main forms of state and municipal debt, I examined the issues: the essence of state and municipal debt and debt servicing.

The essence of state and municipal debt

The amount of outstanding debt obligations of a government is called public debt. General concept public debt of the Russian Federation, its composition, management principles, and servicing procedures are determined and legally enshrined in the Budget Code of the Russian Federation. The public debt of the Russian Federation refers to the debt obligations of the Russian Federation to individuals and legal entities, foreign states, international organizations and other subjects of international law. The state debt of the Russian Federation is fully and unconditionally secured by all federally owned property that makes up the state treasury. Depending on the borrower, it can be a public debt of the Russian Federation, a state debt of a constituent entity of the Russian Federation and a municipal debt. Each budget level is responsible only for its own obligations and is not responsible for the debts of other levels if they were not guaranteed by Karaseva M.V. - Financial Law, 2000

The main issues in characterizing public debt are: the structure and dynamics of public debt, the mechanism of management, maintenance and restructuring, the impact of public debt on the development of the country's economy. The first two processes determine the third. In short, public credit and public debt are double-edged instruments. A government loan, like a regular loan, can have both positive and negative effects on economic development. It all depends on where the resources attracted by the state come from and where they are directed, as well as on the price of the loan.

Domestic borrowing means only the redistribution of resources available in the country between sectors of the economy. If the credit resources attracted by the state could be used for other purposes, then their borrowing by the state reduces the costs of other sectors of the economy and does not increase overall demand. If government borrowing does not reduce spending in other sectors of the economy, then aggregate demand in the national economy increases.

But for economic development, not only the dynamics of demand are important, but also the goals of government borrowing. If the state borrows funds to finance important, quickly paying off projects, and even at normal interest rates, this can help accelerate the development of the national economy. Moreover, the expansion of government demand can have a multiplier effect, leading to multiple growth in related sectors of the economy. The state debt generated through these loans can be freely repaid using part of the profits received from financing such objects.

It should also be borne in mind that the large public debt in particular to international financial organizations and foreign banks, accounting for about 42.3% of the debt structure, significantly limits the country’s sovereignty, especially if Russia’s interests do not coincide with the interests of these organizations Drobzina L.A. - Finance, money circulation and credit, 1997

But the consequences of government loans may be different. If loans attracted by the state are spent to cover unproductive expenses (military expenditures, excessive inflation of the state apparatus without increasing the efficiency of its functioning, etc.), then government borrowing will be a direct deduction from the gross national product. And their repayment will be made through additional taxes. This is precisely where the inextricable connection between state credit and taxes is revealed.

This is why government credit is often referred to as future taxes. Of course, one cannot draw a categorical conclusion about the uselessness or negative impact of state credit on the development of the country’s economy. World practice shows the widespread use of government credit to finance government budget expenditures. This is generally a natural and necessary process. The point is different. Each new government borrowing must be economically and socially justified. Acting as a borrower in the financial market, the state increases the demand for borrowed funds, i.e. contributes to an increase in loan prices. In some cases, an absolute reduction in the volume of credit resources for the economy is possible. Well, if government borrowing is taken out at interest rates that exceed the rate of profit in producing industries, then there is a huge flow of capital from the “real economy” (the sphere of production) to the speculative market. Ultimately, there is a pumping of state tax revenues in favor of domestic and foreign credit organizations Senchagov V.K. - Finance, money circulation and credit, 1999

External borrowing at the time of receipt of funds leads to an increase in the volume financial resources countries and make it possible to increase the total demand of the state for goods and services of national production, if funds are spent for these purposes. At the same time, loans from foreign states, international organizations and foreign banks can be used to pay for unproductive government purchases abroad (tied loans), return previously received loans, etc.

The state acts in the credit market not only as a borrower and guarantor, but also as a lender. Government lending is used as a tool for regulating the economy in order to maintain or accelerate the development of certain sectors and industries of the economy, regions, and in some cases, individual large firms. The system of state guarantees of loans issued by private banks to exporters, as well as small and medium-sized enterprises, is especially widely developed. Mostly industrial developed countries There are state or semi-state companies that insure the risk of non-payment to exporters at low rates. This encourages the conquest and expansion of foreign markets by domestic producers. In addition, the system of state guarantees is widely developed in a number of countries in mortgage lending for housing Gracheva E.Yu. - Financial Law, 1998

Loans provided from territorial budgets or extra-budgetary state funds play an important role in stimulating the development of production and employment. Lending cash gaps to lower-level budgets is quite often practiced.

The growth of domestic debt also negatively affects the financial and economic situation of our country, since it is mainly through internal borrowing that holes in the budget are patched up, funds are withdrawn from the real sector of the economy, and they are necessary:

For lending working capital enterprises;

For investing worn-out fixed assets;

Mastering new technologies, etc.

The need to attract additional financial resources arises, first of all, to solve the problems of financing the budget deficit; carrying out regional financial and credit policies aimed at supporting individual regions and municipalities; support of priority sectors of the economy and activities from the state’s perspective; modernization of production, since idle industry does not create tax potential and does not provide the population with jobs.

State debt obligations have the following forms:

Loan agreements concluded on behalf of the Russian Federation with credit organizations, foreign states, international financial organizations;

Government borrowings carried out by issuing securities;

Agreements on the receipt by the Russian Federation of budget loans from budgets of other levels of the budget system;

Agreements on the extension and restructuring of debt obligations of the Russian Federation of previous years.

State internal and external borrowings are carried out in accordance with the Programs approved for the next financial year together with the Federal Budget Law. The maximum volume of government external borrowings of the Russian Federation should not exceed the annual volume of payments for servicing and repaying government external debt.

The maximum amount of public debt for the next financial year is approved by the Federal Budget Law.

Unlike a bank loan, in which any material assets owned by enterprises (property, securities, etc.) act as collateral for repayment of the loan, with a state loan, the collateral for the loan is property owned by the state Drobzina L.A. - Finance, money circulation and credit, 1997

Article 97. State debt of the Russian Federation

The state debt of the Russian Federation includes debt obligations of the Russian Federation to individuals and legal entities of the Russian Federation, constituent entities of the Russian Federation, municipalities, foreign states, international financial organizations, other subjects of international law, foreign individuals and legal entities arising as a result of government borrowings of the Russian Federation , as well as debt obligations under state guarantees provided by the Russian Federation, and debt obligations arising as a result of the adoption of legislative acts of the Russian Federation on the attribution to public debt of debt obligations of third parties that arose before the entry into force of this Code.

Article 98. Structure of the public debt of the Russian Federation, types and maturity of debt obligations of the Russian Federation

• (as amended by Federal Law No. 63-FZ dated April 26, 2007)
• 1. The structure of the public debt of the Russian Federation is a grouping of debt obligations of the Russian Federation according to the types of debt obligations established by this article.
• 2. Debt obligations of the Russian Federation may exist in the form of obligations for:
• 1) loans attracted on behalf of the Russian Federation as a borrower from credit organizations, foreign states, including targeted foreign loans (borrowings) of international financial organizations, other subjects of international law, foreign legal entities;
• 2) government securities issued on behalf of the Russian Federation;
• 3) budget loans attracted to the federal budget from other budgets of the budget system of the Russian Federation;
• 4) state guarantees of the Russian Federation;
• 5) other debt obligations previously classified in accordance with the legislation of the Russian Federation as the state debt of the Russian Federation.
• 3. Debt obligations of the Russian Federation can be short-term (less than one year), medium-term (from one year to five years) and long-term (from five to 30 years inclusive).
• 4. The volume of state internal debt of the Russian Federation includes:
• 1) the nominal amount of debt on government securities of the Russian Federation, the obligations for which are expressed in the currency of the Russian Federation;
• 2) the volume of principal debt on loans received by the Russian Federation and the obligations for which are expressed in the currency of the Russian Federation;
• 3) the volume of principal debt on budget loans received by the Russian Federation;
• 4) the volume of obligations under government guarantees expressed in the currency of the Russian Federation;
• 5) the volume of other (except for those indicated) debt obligations of the Russian Federation, payment of which in the currency of the Russian Federation is provided for by federal laws before the entry into force of this Code.
• 5. The volume of state external debt of the Russian Federation includes:
• 1) the nominal amount of debt on government securities of the Russian Federation, the obligations for which are expressed in foreign currency;
• 2) the amount of principal debt on loans received by the Russian Federation and obligations for which are expressed in foreign currency, including targeted foreign loans (borrowings) raised under state guarantees of the Russian Federation;
• 3) the volume of obligations under state guarantees of the Russian Federation, expressed in foreign currency.

Article 98.1. Termination of debt obligations of the Russian Federation, denominated in the currency of the Russian Federation, and their write-off from the state debt of the Russian Federation

• 1. In the event that a debt obligation of the Russian Federation is not presented for repayment (the creditor has not fulfilled the obligations specified by the terms and (or) regulatory legal acts action) within three years from the date following the repayment date provided for by the terms of the debt obligation or the relevant federal laws, or the period of the state guarantee of the Russian Federation has expired and in other cases provided for in Article 115 of this Code, the specified debt obligation is considered completely terminated and written off state internal debt of the Russian Federation, unless otherwise provided by federal laws.
• 2. The Ministry of Finance of the Russian Federation, upon expiration of the deadlines and in other cases specified in paragraph 1 of this article, issues an act on writing off debt obligations denominated in the currency of the Russian Federation from the state internal debt of the Russian Federation.
• 3. Write-off from the state internal debt of the Russian Federation is carried out by reducing the volume of state internal debt of the Russian Federation by type of written-off state debt obligations, expressed in the currency of the Russian Federation, by the amount of their write-off without reflecting the write-off amounts in the sources of financing the federal budget deficit.
• 4. The effect of paragraphs 1 - 3 of this article does not apply to obligations under loan agreements, to debt obligations of the Russian Federation to the constituent entities of the Russian Federation and municipalities.
• 5. The write-off of restructured and also repaid (purchased) debt obligations from the state internal debt of the Russian Federation is carried out taking into account the provisions of Articles 105 and 113 of this Code.
• 6. Issues of government securities of the Russian Federation purchased (reissued) in full by the Ministry of Finance of the Russian Federation before the maturity date may be recognized as early redeemed by decision of the Ministry of Finance of the Russian Federation.

Article 99. Structure of public debt of a constituent entity of the Russian Federation, types and maturity of debt obligations of a constituent entity of the Russian Federation

• 1. The structure of the public debt of a constituent entity of the Russian Federation is a grouping of debt obligations of a constituent entity of the Russian Federation according to the types of debt obligations established by this article.
• 2. Debt obligations of a constituent entity of the Russian Federation may exist in the form of obligations for:
• 1) government securities of a constituent entity of the Russian Federation;
• 2) budget loans attracted to the budget of a constituent entity of the Russian Federation from other budgets of the budget system of the Russian Federation;
• 3) loans received by a constituent entity of the Russian Federation from credit organizations, foreign banks and international financial organizations;
• 4) state guarantees of the constituent entity of the Russian Federation.

Debt obligations of a constituent entity of the Russian Federation cannot exist in other forms, except for those provided for in this paragraph.

• 3. The volume of public debt of a constituent entity of the Russian Federation includes:
• 1) the nominal amount of debt on government securities of a constituent entity of the Russian Federation;
• 2) the amount of principal debt on loans received by a constituent entity of the Russian Federation;
• 4) the volume of obligations under state guarantees provided by the constituent entity of the Russian Federation;
• 5) the volume of other (except for those indicated) outstanding debt obligations of the constituent entity of the Russian Federation.
• 4. The volume of state internal debt of a constituent entity of the Russian Federation includes:
• 1) the nominal amount of debt on government securities of a constituent entity of the Russian Federation, the obligations for which are expressed in the currency of the Russian Federation;
• 2) the volume of principal debt on loans received by a constituent entity of the Russian Federation, the obligations for which are expressed in the currency of the Russian Federation;
• 3) the volume of the principal debt on budget loans attracted to the budget of a constituent entity of the Russian Federation from other budgets of the budget system of the Russian Federation;
• 4) the volume of obligations under state guarantees provided by a constituent entity of the Russian Federation, expressed in the currency of the Russian Federation;
• 5) the volume of obligations of a constituent entity of the Russian Federation to the Russian Federation arising in foreign currency as part of the use of targeted foreign loans (borrowings);
• 6) the volume of other (except for those indicated) outstanding debt obligations of the constituent entity of the Russian Federation, the obligations for which are expressed in the currency of the Russian Federation.
• 5. The volume of public external debt of a constituent entity of the Russian Federation includes:
• 1) the nominal amount of debt on government securities of a constituent entity of the Russian Federation, the obligations for which are expressed in foreign currency;
• 2) the amount of principal debt on loans received by a constituent entity of the Russian Federation, the obligations for which are expressed in foreign currency;
• 3) the volume of obligations under state guarantees provided by a constituent entity of the Russian Federation in foreign currency, as well as provided to secure obligations in foreign currency;
• 4) the volume of other (except for those indicated) outstanding debt obligations of the constituent entity of the Russian Federation, the obligations for which are expressed in foreign currency.
• 6. Debt obligations of a constituent entity of the Russian Federation can be short-term (less than one year), medium-term (from one year to five years) and long-term (from five to 30 years inclusive).

Article 99.1. Termination of debt obligations of a constituent entity of the Russian Federation, expressed in the currency of the Russian Federation, and their write-off from the public debt of a constituent entity of the Russian Federation

• 1. If a debt obligation of a constituent entity of the Russian Federation, expressed in the currency of the Russian Federation, is not presented for repayment (the creditor has not performed the actions specified by the terms of the obligation and regulatory legal acts of the constituent entity of the Russian Federation) within three years from the date following the date of repayment, provided for by the terms of the debt obligation of a subject of the Russian Federation, or the period of the state guarantee of the subject of the Russian Federation has expired and in other cases provided for in Article 115 of this Code, the specified obligation is considered completely terminated and written off from the state debt of the subject of the Russian Federation, unless otherwise provided by the laws of the subject of the Russian Federation.
• 2. The highest executive body of state power of a constituent entity of the Russian Federation, upon expiration of the deadlines and in other cases specified in paragraph 1 of this article, issues a regulatory legal act on writing off debt obligations denominated in the currency of the Russian Federation from the public debt of a constituent entity of the Russian Federation.
• 3. Write-off from the state debt of a constituent entity of the Russian Federation is carried out by reducing the volume of public debt of a constituent entity of the Russian Federation by type of written off government debt obligations of a constituent entity of the Russian Federation, expressed in the currency of the Russian Federation, by the amount of their write-off without reflecting the write-off amounts in the sources of financing the budget deficit of the constituent entity of the Russian Federation .
• 4. The effect of paragraphs 1 - 3 of this article does not apply to obligations under loan agreements, to debt obligations to the Russian Federation, other constituent entities of the Russian Federation and municipalities.
• 5. The write-off of restructured and also repaid (purchased) debt obligations from the state debt of a constituent entity of the Russian Federation is carried out taking into account the provisions of Articles 105 and 113 of this Code.
• 6. Issues of government securities of a constituent entity of the Russian Federation, purchased in full by the body that issued them in accordance with the terms of issue of securities of a constituent entity of the Russian Federation before the redemption date, may be recognized as early redeemed by decision of the said body.

Article 100. Structure of municipal debt, types and maturity of municipal debt obligations

• 1. The structure of municipal debt is a grouping of municipal debt obligations according to the types of debt obligations established by this article.
• 2. Debt obligations of a municipal entity may exist in the form of obligations for:
• 1) securities of a municipal entity (municipal securities);
• 2) budget loans attracted to the local budget from other budgets of the budget system of the Russian Federation;
• 3) loans received by the municipality from credit organizations;
• 4) guarantees of the municipality (municipal guarantees).

Debt obligations of a municipal entity cannot exist in other forms, except for those provided for in this paragraph.

• 3. The volume of municipal debt includes:
• 1) the nominal amount of debt on municipal securities;
• 2) the volume of principal debt on budget loans attracted to the local budget;
• 3) the amount of principal debt on loans received by the municipality;
• 4) the volume of obligations under municipal guarantees;
• 5) the volume of other (except for those indicated) outstanding debt obligations of the municipality.
• 4. Debt obligations of a municipality can be short-term (less than one year), medium-term (from one year to five years) and long-term (from five to 10 years inclusive).

Article 100.1. Termination of municipal debt obligations denominated in the currency of the Russian Federation and their write-off from municipal debt

• 1. If a municipal debt obligation, denominated in the currency of the Russian Federation, is not presented for repayment (the creditor has not fulfilled the obligations specified by the terms and conditions of the municipal legal acts of the municipality) within three years from the date following the date of repayment provided for by the terms of the municipal debt obligation, or the period of the municipal guarantee has expired and in other cases provided for in Article 115 of this Code, the specified obligation is considered completely terminated and written off from the municipal debt, unless otherwise provided by municipal legal acts of the representative bodies of the municipality.
• 2. The local administration, upon expiration of the deadlines and in other cases specified in paragraph 1 of this article, issues a municipal legal act on the write-off of municipal debt obligations denominated in the currency of the Russian Federation.
• 3. Write-off from municipal debt is carried out by reducing the volume of municipal debt by type of written-off municipal debt obligations, expressed in the currency of the Russian Federation, by the amount of their write-off without reflecting the write-off amounts in the sources of financing the local budget deficit.
• 4. The effect of paragraphs 1 - 3 of this article does not apply to obligations under loan agreements, to municipal debt obligations to the Russian Federation, constituent entities of the Russian Federation and other municipalities.
• 5. Write-off of restructured, as well as repaid (purchased) municipal debt obligations from municipal debt is carried out taking into account the provisions of Articles 105 and 113 of this Code.
• 6. Issues of municipal securities purchased in full by the body that issued them in accordance with the terms of issue of municipal securities before the redemption date may be recognized as early redeemed by decision of the said body.

Article 101. Management of state and municipal debt

• 1. Management of the public debt of the Russian Federation is carried out by the Government of the Russian Federation or the Ministry of Finance of the Russian Federation authorized by it.
• 2. Management of the public debt of a constituent entity of the Russian Federation is carried out by the highest executive body of state power of a constituent entity of the Russian Federation or the financial body of a constituent entity of the Russian Federation in accordance with the law of the constituent entity of the Russian Federation.
• 3. Management of municipal debt is carried out by the executive and administrative body of the municipal formation (local administration) in accordance with the charter of the municipal formation.

Article 102. Liability for debt obligations of the Russian Federation, constituent entities of the Russian Federation, municipalities

• 1. Debt obligations of the Russian Federation, a subject of the Russian Federation, a municipal entity are fully and unconditionally secured by all property owned by the Russian Federation, a subject of the Russian Federation, a municipal entity that constitutes the corresponding treasury, and are fulfilled from the funds of the corresponding budget.
• 2. The Russian Federation is not responsible for the debt obligations of the constituent entities of the Russian Federation and municipalities if these obligations were not guaranteed by the Russian Federation.
• 3. A subject of the Russian Federation shall not be liable for debt obligations of the Russian Federation, other subjects of the Russian Federation and municipalities, if these obligations were not guaranteed by this subject of the Russian Federation.
• 4. A municipal entity is not liable for debt obligations of the Russian Federation, constituent entities of the Russian Federation and other municipal entities if these obligations were not guaranteed by this municipal entity.

Article 103. Implementation of state and municipal borrowings

• 1. Government borrowing of the Russian Federation means government loans carried out by issuing government securities on behalf of the Russian Federation, and loans attracted from other budgets of the budget system of the Russian Federation, credit organizations, foreign states, including targeted foreign loans (borrowings), international financial organizations, other subjects of international law, foreign legal entities for which debt obligations of the Russian Federation arise.
• 2. State and municipal internal borrowings are carried out in order to finance deficits of the relevant budgets, as well as to pay off debt obligations.
• 3. State internal borrowings of the Russian Federation mean government loans carried out by issuing government securities on behalf of the Russian Federation, and loans attracted from other budgets of the budget system of the Russian Federation, credit organizations and international financial organizations, for which debt obligations of the Russian Federation arise as borrower, expressed in the currency of the Russian Federation.

The right to carry out state internal borrowings on behalf of the Russian Federation in accordance with this Code belongs to the Government of the Russian Federation or the Ministry of Finance of the Russian Federation authorized by it.

4. State external borrowings of the Russian Federation mean government loans carried out by issuing government securities on behalf of the Russian Federation, and loans attracted from credit organizations, foreign states, including targeted foreign loans (borrowings), international financial organizations, and other subjects of international law , foreign legal entities for which debt obligations of the Russian Federation arise, denominated in foreign currency.

State external borrowings of the Russian Federation are carried out in order to finance the federal budget deficit, as well as to repay government debt obligations of the Russian Federation.

The right to carry out state external borrowings of the Russian Federation and conclude agreements on the provision of state guarantees to attract external credits (loans) belongs to the Russian Federation. On behalf of the Russian Federation, the Government of the Russian Federation or the Ministry of Finance of the Russian Federation authorized by it can carry out external borrowings.

• 5. The Government of the Russian Federation or the Ministry of Finance of the Russian Federation authorized by it has the right to carry out internal (external) borrowings in excess of the upper limit of the state internal (external) debt of the Russian Federation established for the corresponding financial year by the federal law on the federal budget for the next financial year and the planning period replacing external (internal) borrowings if this reduces the cost of servicing the public debt of the Russian Federation within the upper limit of the public debt of the Russian Federation (the amount of the upper limit of the public internal debt of the Russian Federation established by the federal law on the federal budget for the next financial year and planning period, and the upper limit of the state external debt of the Russian Federation established by the federal law on the federal budget for the next financial year and planning period).
• 6. State borrowing of the constituent entities of the Russian Federation means government loans carried out by issuing government securities on behalf of the constituent entity of the Russian Federation, and loans attracted in accordance with the provisions of this Code to the budget of the constituent entity of the Russian Federation from other budgets of the budget system of the Russian Federation, credit organizations, foreign banks and international financial organizations under which debt obligations of a constituent entity of the Russian Federation arise.

State internal borrowings of the constituent entities of the Russian Federation - government loans carried out by issuing government securities on behalf of the constituent entity of the Russian Federation, and loans attracted in accordance with the provisions of this Code to the budget of the constituent entity of the Russian Federation from other budgets of the budget system of the Russian Federation, credit organizations, international financial organizations for which debt obligations of a constituent entity of the Russian Federation arise, expressed in the currency of the Russian Federation.

State external borrowings of the constituent entities of the Russian Federation - government loans carried out by issuing government securities on behalf of the constituent entity of the Russian Federation, and loans attracted in accordance with the provisions of this Code to the budget of the constituent entity of the Russian Federation from foreign banks for which debt obligations of the constituent entity of the Russian Federation arise, denominated in foreign currency.

State external borrowings of a constituent entity of the Russian Federation are carried out in accordance with the provisions of this Code in order to ensure the repayment of the existing public external debt of a constituent entity of the Russian Federation and (or) financing the budget deficit of a constituent entity of the Russian Federation.

The right to carry out state internal and external borrowings of a constituent entity of the Russian Federation on behalf of a constituent entity of the Russian Federation in accordance with this Code and the law of a constituent entity of the Russian Federation adopted in accordance with it belongs to the highest executive body of state power of a constituent entity of the Russian Federation or the financial body of a constituent entity of the Russian Federation.

7. Municipal borrowings are understood as municipal loans carried out by issuing securities on behalf of the municipality, and loans attracted in accordance with the provisions of this Code to the local budget from other budgets of the budget system of the Russian Federation and from credit organizations for which municipal debt obligations arise .

The right to carry out municipal borrowings on behalf of the municipality in accordance with this Code and the charter of the municipality belongs to the local administration.

Article 104. Borrowings and guarantees of constituent entities of the Russian Federation, municipalities in foreign currency

1. The procedure for external borrowing by constituent entities of the Russian Federation (with the exception of external bond loans) is established by the Government of the Russian Federation.

The issue of external bond loans of the constituent entities of the Russian Federation is carried out in accordance with the provisions of this Code and the Federal Law of July 29, 1998 N 136-FZ “On the specifics of the issue and circulation of state and municipal securities”.

The issue of external bond loans of the constituent entities of the Russian Federation is carried out taking into account the priority of state external borrowings of the Russian Federation.

Subjects of the Russian Federation for which the estimated share of interbudgetary transfers from the federal budget (except for subventions) during two of the last three reporting years did not exceed 5 percent of the volume of own revenues of the consolidated budget of the constituent entity of the Russian Federation, starting from the next financial year, have the right to carry out external borrowings for the purpose of ensuring the repayment of external debt and (or) financing the budget deficit of a constituent entity of the Russian Federation.

Subjects of the Russian Federation for which the estimated share of interbudgetary transfers from the federal budget (except for subventions) during two of the last three reporting years exceeded 5 percent of the volume of own revenues of the consolidated budget of the constituent entity of the Russian Federation have the right to carry out external borrowings in order to ensure the repayment of the external debt of the constituent entity of the Russian Federation Federation. Moreover, in the current financial year, the volume of these external borrowings cannot exceed the volume of obligations to repay in the current financial year the external debt of a constituent entity of the Russian Federation existing at the beginning of the year, excluding obligations under guarantees denominated in foreign currency.

• 2. Subjects of the Russian Federation and municipalities have the right to borrow from the Russian Federation in foreign currency and provide the Russian Federation with guarantees in foreign currency exclusively within the framework of the use of targeted foreign loans (borrowings).
• 3. Borrowing from the Russian Federation in foreign currency, provision of guarantees to the Russian Federation in foreign currency by constituent entities of the Russian Federation, municipal entities are not external borrowings and do not lead to the formation of external debt of a constituent entity of the Russian Federation, municipal entity.
• 4. Borrowing by constituent entities of the Russian Federation and municipalities in foreign currency, except for the cases established by paragraphs 1 and 2 of this article, provision of guarantees by constituent entities of the Russian Federation and municipalities to secure obligations arising in foreign currency, as well as guarantees in foreign currency, for except for the cases established by paragraph 2 of this article, are not allowed.

Article 105. Debt restructuring

• 1. For the purposes of this Code, debt restructuring means an agreement-based termination of debt obligations constituting state or municipal debt, with the replacement of these debt obligations with other debt obligations providing for other conditions for servicing and repaying obligations.
• 2. Debt restructuring can be carried out with a partial write-off (reduction) of the principal amount.
• 3. The amount of expenses for servicing the restructured debt is not included in the amount of expenses for servicing the debt obligation in the current financial year if the specified amount is included in the total volume of the restructured obligations.

Article 106. Limit volume of borrowings of constituent entities of the Russian Federation, municipal borrowings

The maximum volume of borrowing by constituent entities of the Russian Federation, municipal borrowing in the current financial year, taking into account the provisions of Article 104 of this Code, should not exceed the amount allocated in the current financial year to finance the deficit of the corresponding budget and (or) repayment of debt obligations of the corresponding budget.

Article 107. Limit amount of state debt of a constituent entity of the Russian Federation, municipal debt

In accordance with Federal Law dated December 3, 2012 N 244-FZ, from January 1, 2014, paragraph one of paragraph 1 of Article 107 after the words “The maximum amount of public debt of a constituent entity of the Russian Federation” will be supplemented with the words “for the next financial year and each year of the planning period.”

1. The maximum amount of public debt of a constituent entity of the Russian Federation, municipal debt for the next financial year (the next financial year and each year of the planning period) is established by the law (decision) on the relevant budget within the limits established by paragraphs 2 and 3 of this article.

The legislative (representative) body of state power of a constituent entity of the Russian Federation, the representative body of a municipal entity has the right, in order to manage the relevant debt, to approve additional restrictions on the public debt of a constituent entity of the Russian Federation, municipal debt.

The maximum volume of public debt of a constituent entity of the Russian Federation, the debt of a municipal entity (municipal debt) for the purposes of this Code means the volume of debt of a constituent entity of the Russian Federation, the volume of municipal debt, which cannot be exceeded when executing the corresponding budget.

Until January 1, 2017, the maximum volume of public debt of a constituent entity of the Russian Federation (municipal debt) may exceed the restrictions established by paragraphs 2 and 3 of Article 107, within the limits of the volume of public debt of a constituent entity of the Russian Federation (municipal debt) on budget loans as of January 1 of the current year and (or) in the event of approval by the law of the constituent entity of the Russian Federation (regulatory legal act of the representative body of the municipality) on the budget as part of the sources of financing the budget deficit of the constituent entity of the Russian Federation (local budget) of budget loans attracted in the current financial year to the budget of the constituent entity of the Russian Federation (local budget) budget) from other budgets of the budget system of the Russian Federation, within the limits of the specified loans. Until January 1, 2017, the upper limit of the state internal debt of a constituent entity of the Russian Federation, as well as municipal debt, is established in compliance with the conditions specified in this part ( the federal law dated 04/09/2009 N 58-FZ (as amended on 11/30/2011)).

2. The maximum amount of public debt of a constituent entity of the Russian Federation should not exceed the approved total annual volume of budget revenues of the constituent entity of the Russian Federation without taking into account the approved volume of gratuitous revenues.

For a constituent entity of the Russian Federation in respect of which the measures provided for in paragraph 4 of Article 130 of this Code are being implemented, the maximum amount of debt should not exceed 50 percent of the approved total annual budget revenues of the constituent entity of the Russian Federation without taking into account the approved volume of gratuitous revenues.

3. The maximum amount of municipal debt should not exceed the approved total annual volume of local budget revenues without taking into account the approved volume of gratuitous revenues and (or) tax revenues according to additional deduction standards.

For a municipal entity in respect of which the measures provided for in paragraph 4 of Article 136 of this Code are being implemented, the maximum amount of municipal debt should not exceed 50 percent of the approved total annual volume of local budget revenues without taking into account the approved volume of gratuitous revenues and (or) tax revenues according to additional standards deductions.

• 4. Exceeding the restrictions established by this article in the execution of the relevant budget is a violation of the budget legislation of the Russian Federation and entails the application of coercive measures for violation of the budget legislation of the Russian Federation provided for by this Code.
• 5. If, during the execution of the corresponding budget, the volume of debt of a constituent entity of the Russian Federation, municipal debt exceeds the maximum volume of public debt of a constituent entity of the Russian Federation, municipal debt established by law (decision) on the relevant budget, the authorized body of state power of the constituent entity of the Russian Federation, local government body has the right to adopt new debt obligations only after bringing the volume of debt of a constituent entity of the Russian Federation, municipal debt into compliance with the requirements of this article.

In accordance with Federal Law dated December 3, 2012 N 244-FZ, from January 1, 2014, paragraph 6 of Article 107 will be stated in a new wording.

6. The law (decision) on the relevant budget establishes the upper limit of the state internal debt of a constituent entity of the Russian Federation, the upper limit of the state external debt of a constituent entity of the Russian Federation (if any), the upper limit of municipal debt as of January 1 of the year following the next financial year ( the next financial year and each year of the planning period), which is a calculated indicator, indicating, among other things, the upper limit of debt under state guarantees of a constituent entity of the Russian Federation, municipal guarantees.

The upper limit of the state internal debt of a constituent entity of the Russian Federation and the upper limit of the state external debt of a constituent entity of the Russian Federation are established in compliance with the restrictions established by paragraph 2 of this article.

The upper limit of municipal debt is established in compliance with the restrictions established by paragraph 3 of this article.

Article 108. Program of state external borrowings of the Russian Federation

• 1. The program of government external borrowings of the Russian Federation is a list of all external borrowings of the Russian Federation for the next financial year and planning period by type of borrowing, reflecting the difference between the volume of borrowing and the volume of funds allocated to repay the principal debt for each type of debt obligation.
• 2. The program of state external borrowings of the Russian Federation contains a list of external borrowings of the Russian Federation for the next financial year and planning period, divided into unrelated (financial) and targeted foreign borrowings, indicating:
• 1) for unrelated (financial) borrowings:

source of attraction;

borrowing amounts;

maturity date;

2) for targeted foreign borrowings:

final recipient;

purposes of borrowing and directions of use;

source of borrowing;

borrowing amounts;

maturity date;

the availability of third party guarantees for the return of funds to the federal budget by the end borrower, if such a return is provided for, indicating the organization (body) that provided the guarantee, the validity period and the scope of obligations under the guarantee;

estimates of the volume of funds used before the start of the next financial year;

forecast of the volume of use of funds in the next financial year.

• 3. The program of state external borrowings of the Russian Federation must separately provide for all loans whose value exceeds the equivalent of 10 million US dollars for the entire loan term. These loans are subject to implementation only if they are approved as part of the program of state external borrowings of the Russian Federation by the federal law on the federal budget.
• 4. In the program of state external borrowings of the Russian Federation, the volume detailed for specific loans must be at least 85 percent of the total volume of external borrowings.
• 5. The Government of the Russian Federation or the Ministry of Finance of the Russian Federation authorized by it has the right to carry out external borrowings that are not included in the program of state external borrowings of the Russian Federation, if these external borrowings are carried out in the process of restructuring the state external debt of the Russian Federation, which leads to a reduction in the cost of servicing the state external debt of the Russian Federation within the established maximum volume of the state external debt of the Russian Federation.

This right applies exclusively to unrelated (financial) government external borrowings of the Russian Federation.

• 6. The program of state external borrowings of the Russian Federation must include loan agreements concluded in previous years, unless such agreements have lost force in the prescribed manner.
• 7. The restructuring of state external debt in accordance with Article 105 of this Code is not reflected in the program of state external borrowings of the Russian Federation.
• 8. The program of state external borrowings of the Russian Federation is an annex to the federal law on the federal budget for the next financial year and planning period.

Article 108.1. Program of state guarantees of the Russian Federation in foreign currency

• 1. The program of state guarantees of the Russian Federation in foreign currency is a list of state guarantees of the Russian Federation in foreign currency for the next financial year and planning period, with the exception of targeted foreign loans (borrowings) attracted under state guarantees of the Russian Federation, indicating:
• 1) the total volume of guarantees;
• 3) excluded;
• 4) currency of guarantee obligations;
• 5) the presence or absence of the guarantor’s right of recourse against the principal, as well as other conditions for the provision and execution of guarantees;
• 6) the total volume of budgetary allocations that must be provided in the next financial year and planning period for the execution of guarantees for possible guarantee cases.
• 2. The program of state guarantees of the Russian Federation in foreign currency must separately provide for each direction (purpose) of guarantee, the volume of which exceeds an amount equivalent to 50 million US dollars, indicating the categories and (or) names of the principals.

The specified guarantees are subject to implementation only if they are approved as part of the program of state guarantees of the Russian Federation in foreign currency.

3. The program of state guarantees of the Russian Federation in foreign currency is an annex to the federal law on the federal budget for the next financial year and planning period.

In accordance with Federal Law dated December 3, 2012 N 244-FZ, from January 1, 2014 in Article 108.2 the words “the next financial year (the next financial year and planning period)” will be replaced with the words “the next financial year and planning period.”

Article 108.2. Program of state external borrowings of a constituent entity of the Russian Federation

• 1. The program of state external borrowings of a constituent entity of the Russian Federation is a list of external borrowings of a constituent entity of the Russian Federation for the next financial year (the next financial year and planning period).
• 2. The program of state external borrowings of a constituent entity of the Russian Federation must define:
• 1) the maximum volume of government external borrowings of a constituent entity of the Russian Federation for the next financial year (the next financial year and planning period);
• 2) the list, volumes and repayment terms of government external borrowings of a constituent entity of the Russian Federation for the next financial year (the next financial year and planning period).
• 3. The program of state external borrowings of a constituent entity of the Russian Federation for the next financial year (the next financial year and planning period) is an annex to the law on the budget of the constituent entity of the Russian Federation for the next financial year (the next financial year and planning period).

Article 109. Amendments to the program of state external borrowings of the Russian Federation and the program of state guarantees of the Russian Federation in foreign currency

• 1. Agreements on state external borrowings of the Russian Federation, the implementation of which requires an increase in the volumes of state external borrowings of the Russian Federation, approved by the federal law on the federal budget for the next financial year and planning period, can be concluded only after making appropriate changes to the federal law on the federal budget for next financial year and planning period.
• (as amended by Federal Law No. 63-FZ dated April 26, 2007)

• 2. Agreements on state external borrowings of the Russian Federation, provision of state guarantees to the Russian Federation for external loans subject to ratification:
  • (as amended by Federal Law No. 63-FZ dated April 26, 2007)

if the loans or state guarantees of the Russian Federation provided for by these agreements are not included, respectively, in the program of state external borrowings of the Russian Federation or in the program of state guarantees of the Russian Federation in foreign currency in accordance with Articles 108 or 108.1 of this Code and (or) financial resources attracted in connection with borrowings exceed the equivalent of US$10 million and the guarantees provided exceed the equivalent of US$50 million for the entire term of the loan or guarantee;

(as amended by Federal Law No. 63-FZ dated April 26, 2007)

if the execution of such agreements leads to exceeding the upper limit of public external debt approved by the federal law on the federal budget for the next financial year and planning period;

(as amended by Federal Law No. 63-FZ dated April 26, 2007)

on other grounds provided for by the legislation of the Russian Federation.

Agreements on state external borrowings of the Russian Federation are not subject to ratification if they were concluded in pursuance of the right established by paragraph 3 of Article 106 of this Code.

(as amended by Federal Law No. 63-FZ dated April 26, 2007)

Article 110. Program of state internal borrowings of the Russian Federation

(as amended by Federal Law No. 63-FZ dated April 26, 2007)

1. The program of government internal borrowings of the Russian Federation for the next financial year and planning period is a list of all internal borrowings of the Russian Federation in the form of the difference between the volume of borrowing and the volume of funds allocated to repay the principal amount of the debt for each type of borrowing.

State internal borrowings of the Russian Federation, carried out by issuing government securities on behalf of the Russian Federation, providing, depending on the conditions of their issue, to receive upon redemption something other than cash, property equivalent, are subject to reflection in the program of state internal borrowings of the Russian Federation.

• 2. The restructuring of the state internal debt of the Russian Federation in accordance with Article 105 of this Code is not reflected in the program of state internal borrowings of the Russian Federation.
• 3. The program of state internal borrowings of the Russian Federation for the next financial year and planning period is an annex to the federal law on the federal budget for the next financial year and planning period.

Article 110.1. Program of state internal borrowings of a constituent entity of the Russian Federation, municipal borrowings

In accordance with Federal Law dated December 3, 2012 N 244-FZ, from January 1, 2014, paragraph one of paragraph 1 of Article 110.1 after the words “Program of state internal borrowings of a constituent entity of the Russian Federation” will be supplemented with the words “for the next financial year and planning period.”

1. The program of state internal borrowings of a constituent entity of the Russian Federation, municipal borrowings for the next financial year (the next financial year and planning period) is a list of all internal borrowings of a constituent entity of the Russian Federation, a municipal entity, indicating the volume of attraction and the amount of funds allocated to repay the principal amount of the debt , for each type of borrowing.

In accordance with Federal Law dated December 3, 2012 N 244-FZ, from January 1, 2014, in paragraph two of paragraph 1 of Article 110.1, the words “the next financial year (the next financial year and planning period)” will be replaced with the words “the next financial year and planning period ( next financial year or next financial year and planning period)".

The program of state internal borrowings of a constituent entity of the Russian Federation, municipal borrowings for the next financial year (the next financial year and planning period) is an annex to the law (decision) on the corresponding budget for the next financial year (the next financial year and planning period).

2. Carrying out, in accordance with Article 105 of this Code, the restructuring of the state internal debt of a constituent entity of the Russian Federation, municipal debt is not reflected in the program of state internal borrowings of a constituent entity of the Russian Federation, municipal borrowings.

Article 110.2. Program of state guarantees of the Russian Federation, state guarantees of the constituent entities of the Russian Federation, municipal guarantees in the currency of the Russian Federation

In accordance with Federal Law dated December 3, 2012 N 244-FZ, from January 1, 2014, paragraph one of paragraph 1 of Article 110.2 after the words “list of provided state guarantees of the Russian Federation, state guarantees of a constituent entity of the Russian Federation” will be supplemented with the words “for the next financial year and planned period".

• 1. The program of state guarantees of the Russian Federation, state guarantees of a constituent entity of the Russian Federation, municipal guarantees in the currency of the Russian Federation is a list of provided state guarantees of the Russian Federation, state guarantees of a constituent entity of the Russian Federation, municipal guarantees in the currency of the Russian Federation for the next financial year (the next financial year and planning period) indicating:
• 1) the total volume of guarantees;
• 2) directions (goals) of guarantees indicating the scope of guarantees for each direction (goals);
• 3) excluded;
• 4) the presence or absence of the guarantor’s right of recourse against the principal, as well as other conditions for the provision and execution of guarantees;

In accordance with the Federal Law of December 3, 2012 N 244-FZ, from January 1, 2014, subparagraph 5 of paragraph 1 of Article 110.2 will be stated in a new wording: “5) the total volume of budgetary allocations that must be provided for the implementation of guarantees of the Russian Federation, a constituent entity of the Russian Federation Federation in the next financial year and planning period, for the fulfillment of municipal guarantees in the next financial year (the next financial year and planning period) for possible guarantee cases."

• 5) the total volume of budgetary allocations that must be provided in the next financial year (the next financial year and planning period) for the execution of guarantees for possible guarantee cases.
• 2. The program of state guarantees of the Russian Federation, state guarantees of a constituent entity of the Russian Federation, municipal guarantees in the currency of the Russian Federation must separately provide for each direction (purpose) of guarantee indicating the categories and (or) names of principals, the volume of which exceeds:
• 1 billion rubles - for state guarantees of the Russian Federation;
• 10 million rubles - for state guarantees of a constituent entity of the Russian Federation;
• 100 thousand rubles - for municipal guarantees.

The specified guarantees are subject to implementation only if they are approved as part of, respectively, the program of state guarantees of the Russian Federation, state guarantees of a constituent entity of the Russian Federation, municipal guarantees in the currency of the Russian Federation.

3. The program of state guarantees of the Russian Federation, state guarantees of a constituent entity of the Russian Federation, municipal guarantees in the currency of the Russian Federation is an annex to the relevant law (decision) on the budget.

Article 111. Limits on expenses for servicing the public debt of a constituent entity of the Russian Federation or municipal debt

In accordance with Federal Law dated December 3, 2012 N 244-FZ, from January 1, 2014, in part one of Article 111, the words “The maximum amount of expenses for servicing the public debt of a constituent entity of the Russian Federation” will be replaced with the words “The volume of expenses for servicing the public debt of a constituent entity of the Russian Federation in next financial year and planning period."

The maximum amount of expenses for servicing the public debt of a constituent entity of the Russian Federation or municipal debt in the next financial year (the next financial year and planning period), approved by the law (decision) on the relevant budget, according to the report on the execution of the corresponding budget for the reporting financial year, should not exceed 15 percent of the volume of expenditures of the corresponding budget, with the exception of the volume of expenditures that are carried out at the expense of subventions provided from the budgets of the budgetary system of the Russian Federation.

The law (decision) on the appropriate budget for the next financial year (the next financial year and each year of the planning period) establishes the amount of expenses for servicing the public debt of a constituent entity of the Russian Federation or municipal debt in compliance with the limitation established by part one of this article.

Article 112. Exceeding the maximum amount of debt of a constituent entity of the Russian Federation or municipal debt and the maximum amount of expenses for servicing the public debt of a constituent entity of the Russian Federation or municipal debt

If, during the execution of the budget of a constituent entity of the Russian Federation, a local budget, the limit values ​​specified in Articles 107 and 111 of this Code are violated, the authorized state body of the constituent entity of the Russian Federation, a local government body does not have the right to accept new debt obligations, with the exception of accepting the corresponding debt obligations for the purpose of debt restructuring subject of the Russian Federation, municipal debt.

Article 112.1. Overdue debt on debt obligations of a constituent entity of the Russian Federation, a municipal entity

• 1. For the purposes of this Code, overdue debt on debt obligations of a constituent entity of the Russian Federation or a municipal entity arising as a result of decisions, actions or inactions of state authorities of a constituent entity of the Russian Federation or a municipal entity is understood to mean the debt of a constituent entity of the Russian Federation or a municipal entity arising due to non-fulfillment or improper fulfillment within the established period of debt obligations of a constituent entity of the Russian Federation, a municipal entity.
• 2. The volume (size) of overdue debt on debt obligations of a constituent entity of the Russian Federation, a municipal entity for the purposes of this Code means the total volume of debt obligations of a constituent entity of the Russian Federation, a municipal entity, unfulfilled on time, the due date for which has come, including the volume of obligations to repay the loan amount (loan), for the payment of interest on the amount of the loan (credit), other payments provided for by the terms of the loan (credit), agreements (contracts) concluded on behalf of a constituent entity of the Russian Federation, a municipal entity, the volume of obligations to fulfill state guarantees of a constituent entity of the Russian Federation, municipal guarantees and other debt obligations of a constituent entity of the Russian Federation, a municipal entity. The amount of overdue debt of a constituent entity of the Russian Federation or municipal entity also includes the amount of penalties (fines, penalties) and interest accrued for late fulfillment of debt obligations.

Article 113. Reflection in budgets of receipts from borrowings, repayment of state or municipal debt arising from borrowings, and expenses for its servicing

• 1. Budget receipts from borrowings are taken into account in the sources of financing the deficit of the corresponding budget by increasing the volume of sources of financing the deficit of the corresponding budget.
• 2. All expenses for servicing debt obligations, including the discount (or the difference between the placement price and the redemption (redemption) price for state or municipal securities), are taken into account in the budget as expenses for servicing state or municipal debt.

Receipts to the budget from the placement of state or municipal securities in an amount exceeding the nominal value, receipts to the budget received as accumulated coupon income, as well as the difference arising in the event of the redemption of securities at a price lower than the offering price, are included in the reduction of servicing costs state or municipal debt in the current financial year.

• 3. Repayment of the principal amount of the debt of the Russian Federation, the debt of a constituent entity of the Russian Federation, municipal debt arising from state or municipal borrowings is taken into account in the sources of financing the deficit of the corresponding budget by reducing the volume of sources of financing the deficit of the corresponding budget.
• 4. When fulfilling obligations on government securities issued on behalf of the Russian Federation, which, in accordance with the terms of their issue, provide for the transfer to creditors of a property equivalent other than cash, the amount of the government debt of the Russian Federation is reduced by the amount of the principal debt (calculated in monetary terms) for the obligations so repaid.

The fulfillment of obligations under the specified government securities of the Russian Federation is taken into account in accordance with paragraphs 2 and 3 of this article.

Article 114. Issue of state and municipal securities

1. The maximum volumes of issue of government securities of the Russian Federation at par value are established by the Government of the Russian Federation in accordance with the upper limit of the government debt of the Russian Federation established by the federal law on the federal budget for the next financial year and planning period.

In accordance with Federal Law dated December 3, 2012 N 244-FZ, from January 1, 2014, paragraph 2 of Article 114 after the words “Limit volumes of issue of government securities of a constituent entity of the Russian Federation” will be supplemented with the words “for the next financial year and each year of the planning period”, the words “at nominal value for the next financial year (the next financial year and each year of the planning period)” will be replaced by the words “for the next financial year (the next financial year and each year of the planning period) at nominal value.”

• 2. The maximum volumes of issue of government securities of a constituent entity of the Russian Federation or municipal securities at par value for the next financial year (the next financial year and each year of the planning period) are established respectively by the highest executive body of state power of the constituent entity of the Russian Federation, the representative body of the municipality in accordance with the upper limit of the state debt of a constituent entity of the Russian Federation, municipal debt, established by law (decision) on the corresponding budget.
• 3. The procedure for issuing government securities of the Russian Federation, constituent entities of the Russian Federation, as well as municipal securities is regulated by the federal law on the specifics of the issue and circulation of government and municipal securities.

Article 115. State and municipal guarantees

1. A state or municipal guarantee may provide:

proper fulfillment by the principal of his obligation to the beneficiary (principal obligation);

compensation for damage incurred during the occurrence of a warranty case of a non-commercial nature.

A state or municipal guarantee can be provided to secure both obligations that have already arisen and obligations that will arise in the future.

2. The conditions of a state or municipal guarantee cannot be changed by the guarantor without the consent of the beneficiary.

The right of claim against the guarantor belonging to the beneficiary under a state or municipal guarantee cannot be transferred to another person, unless otherwise provided in the guarantee.

The guarantor has the right to revoke a state or municipal guarantee only on the grounds specified in the guarantee.

3. A written form of a state or municipal guarantee is mandatory.

Failure to comply with the written form of a state or municipal guarantee entails its invalidity (nullity).

• 4. State or municipal guarantees may provide for subsidiary or joint liability of the guarantor for the obligation of the principal secured by it.
• 5. The state or municipal guarantee must indicate:

name of the guarantor (Russian Federation, subject of the Russian Federation, municipality) and name of the body that issued the guarantee on behalf of the guarantor;

the obligation to secure which the guarantee is issued;

the scope of the guarantor's obligations under the guarantee and the maximum amount of the guarantee;

determination of the warranty case;

name of the principal;

irrevocability of the guarantee or conditions for its revocation;

grounds for issuing a guarantee;

entry into force (date of issue) of the guarantee;

warranty period;

the procedure for the guarantor to fulfill obligations under the guarantee;

the procedure and conditions for reducing the maximum amount of the guarantee when fulfilling the guarantee and (or) fulfilling the obligations of the principal secured by the guarantee;

the presence or absence of the guarantor’s right to claim against the principal for reimbursement of amounts paid by the guarantor to the beneficiary under a state or municipal guarantee (recourse claim of the guarantor against the principal, recourse);

other conditions of the guarantee, as well as information determined by this Code, legal acts of the guarantor, acts of the body issuing the guarantee on behalf of the guarantor.

6. The entry into force of a state or municipal guarantee can be determined by a calendar date or the occurrence of an event (condition) that may occur in the future.

The validity period of a state or municipal guarantee is determined by the terms of the guarantee.

• 7. The beneficiary’s request for payment of a sum of money under a state or municipal guarantee must be submitted to the guarantor in writing, accompanied by the documents specified in the guarantee.
• 8. Upon receipt of the beneficiary’s demand, the guarantor must notify the principal about this and provide him with copies of the demand with all documents related to it.

The guarantor must review the beneficiary's claim with the documents attached to it within the period specified in the guarantee to determine whether this claim and the documents attached to it comply with the terms of the guarantee.

9. The beneficiary’s claim is recognized as unfounded and the guarantor refuses to satisfy the beneficiary’s claim in the following cases:

the claim is presented to the guarantor after the end of the period specified in the guarantee;

the claim or documents attached to it do not comply with the terms of the guarantee;

the beneficiary refused to accept the proper performance of the principal's obligations proposed by the principal or third parties.

The guarantor must notify the beneficiary of the refusal to satisfy his claim.

The guarantor has the right to raise objections against the beneficiary's claim that the principal could present, unless otherwise follows from the terms of the guarantee. The guarantor does not lose the right to these objections even if the principal renounces them or admits his debt.

If the beneficiary's claim is recognized as justified, the guarantor is obliged to fulfill the obligation under the guarantee within the period established in the guarantee.

• 10. The guarantor’s obligation to the beneficiary provided for by a state or municipal guarantee is limited to the payment of the amount of the principal’s obligations secured by the guarantee that were not fulfilled at the time of the beneficiary’s request, but not more than the amount for which the guarantee was issued.
• 11. The guarantor’s obligation to the beneficiary under a state or municipal guarantee terminates:

payment by the guarantor to the beneficiary of the amount determined by the guarantee;

the expiration of the period specified in the guarantee for which it was issued;

in case of full fulfillment by the principal or third parties of the principal’s obligations secured by the guarantee;

due to the beneficiary's waiver of his rights under the guarantee by returning it to the guarantor or a written statement releasing the guarantor from his obligations;

if the principal's obligation to secure which the guarantee is provided has not arisen;

in other cases established by the guarantee.

The beneficiary's retention of a guarantee after the guarantor's obligations under it have terminated does not preserve the beneficiary's rights under that guarantee.

The guarantor, who becomes aware of the termination of the guarantee, must notify the principal about this.

12. If the execution by the guarantor of a state or municipal guarantee leads to the emergence of the right of recourse claim of the guarantor against the principal or is conditioned by the assignment to the guarantor of the rights of claim of the beneficiary against the principal, the execution of such guarantees is taken into account in the sources of financing the deficit of the corresponding budget.

If the execution by the guarantor of a state or municipal guarantee does not lead to the emergence of the guarantor's right of recourse against the principal and is not conditioned by the assignment to the guarantor of the rights of the beneficiary's claim against the principal, the execution of such guarantees shall be reflected as part of the expenses of the corresponding budget.

Funds received by the guarantor as compensation to the guarantor by way of recourse for amounts paid by the guarantor in fulfillment (partial fulfillment) of obligations under the guarantee, as well as in fulfillment of obligations for which the rights of claim were transferred from the beneficiary to the guarantor, are reflected as a return of budget loans.

Article 115.1. A feature of a state or municipal guarantee provided to secure obligations for which it is impossible to identify the beneficiary at the time the guarantee is provided or the beneficiaries are an indefinite number of persons

1. The provision of a state or municipal guarantee to ensure the fulfillment of obligations for which it is impossible to identify the beneficiary at the time the guarantee is provided or the beneficiaries are an indefinite number of persons is carried out with the features established by this article.

An agreement on the provision of a state or municipal guarantee to ensure the fulfillment of obligations for which it is impossible to identify the beneficiary at the time the guarantee is provided or the beneficiaries are an indefinite number of persons is concluded with the principal, and the recipient (holder) of such a guarantee is the principal.

• 2. The agreement on the provision of a guarantee and the guarantee may provide that the requirement for payment of a sum of money under the guarantee (demand for performance of the guarantee) is presented to the guarantor by the principal. The presentation, consideration and execution of the principal's demand for payment of a sum of money under the guarantee is carried out in the manner established by Article 115 of this Code for the claims of the beneficiary.
• 3. The agreement on the provision of a guarantee and the guarantee may establish the procedure and period for the beneficiary (beneficiaries) to accept the guarantee. The period established for the response of the beneficiary (beneficiaries) regarding acceptance of the guarantee is included in the validity period of the guarantee.

If the beneficiary (beneficiaries) have not taken the actions necessary to accept the guarantee within the prescribed period, the guarantee is considered not provided and must be returned to the guarantor.

The principal's retention of the guarantee in the case established by paragraph two of this clause, as well as in the event of termination of the guarantor's obligations under it, does not reserve for the principal or beneficiary (beneficiaries) any rights to further use this guarantee.

4. The provisions of Article 115 of this Code apply to guarantees provided to ensure the fulfillment of obligations for which it is impossible to identify the beneficiary at the time the guarantee is provided or the beneficiaries are an indefinite number of persons, unless otherwise follows from this article, the features and essence of this type of guarantee.

Article 115.2. Procedure and conditions for providing state and municipal guarantees

1. The provision of state or municipal guarantees is carried out in accordance with the powers of state authorities of the Russian Federation, state authorities of constituent entities of the Russian Federation, local governments on the basis, respectively, of a federal law, a law of a constituent entity of the Russian Federation, a decision of a representative body of a municipal entity on the budget for the next financial year (the next financial year and planning period), decisions of the Government of the Russian Federation, the highest executive body of state power of the constituent entity of the Russian Federation and the local administration of the municipality, as well as an agreement on the provision of a state or municipal guarantee, subject to:

conducting an analysis of the principal's financial condition;

provision by the principal (except for cases when the principal is the Russian Federation, a subject of the Russian Federation) that meets the requirements of Article 93.2 of this Code and the civil legislation of the Russian Federation of ensuring the fulfillment of the principal’s obligations to satisfy the recourse claim against the principal in connection with fulfillment in full or in any way parts of the warranty;

the principal, his guarantors (guarantors) have no overdue debt on monetary obligations to the Russian Federation, a constituent entity of the Russian Federation, a municipality, respectively, for obligatory payments to the budget system of the Russian Federation, as well as unsettled obligations under state or municipal guarantees previously provided to the Russian Federation, respectively , subject of the Russian Federation, municipal entity

When providing a state or municipal guarantee to ensure obligations to compensate for damage arising from the occurrence of a guarantee event of a non-commercial nature, as well as a state or municipal guarantee without the right of recourse of the guarantor to the principal, an analysis of the financial condition of the principal may not be carried out. When providing these guarantees, ensuring the fulfillment of the principal's obligations to the guarantor, which may arise in connection with the guarantor's submission of recourse claims against the principal, is not required.

In cases established by the budget legislation of the Russian Federation, state guarantees of the Russian Federation, state guarantees of a constituent entity of the Russian Federation may be provided to ensure the fulfillment of the obligations of a municipal entity without providing them with security for the fulfillment of the obligation to satisfy the recourse claim of the guarantor to the principal in connection with the fulfillment of the guarantee.

• 2. The provision of a state or municipal guarantee, as well as the conclusion of an agreement on the provision of a state or municipal guarantee, is carried out after the principal submits to the body that provides, respectively, state guarantees of the Russian Federation, state guarantees of constituent entities of the Russian Federation or municipal guarantees, documents according to the list established by the said body.
• 3. An analysis of the financial condition of the principal for the purpose of providing a state guarantee of the Russian Federation, a state guarantee of a constituent entity of the Russian Federation or a municipal guarantee is carried out, respectively, by the Ministry of Finance of the Russian Federation, the financial authority of the constituent entity of the Russian Federation, the financial authority of the municipality in the manner established by them.
• 4. The federal law, the law of the constituent entity of the Russian Federation, the decision of the representative body of the municipality on the budget for the next financial year (the next financial year and planning period) must provide for budgetary allocations for the possible implementation of issued state guarantees of the Russian Federation, state guarantees of the constituent entity of the Russian Federation, municipal guarantees accordingly.
• 5. The Russian Federation, a subject of the Russian Federation or a municipal entity for the purpose of providing and fulfilling state or municipal guarantees, as well as maintaining analytical records of the obligations of the principal, his guarantors (guarantors) and other persons in connection with the provision and execution of state or municipal guarantees, has the right to use the services of an agent appointed by the Government of the Russian Federation, the highest executive body of state power of a constituent entity of the Russian Federation, the local administration of a municipality, respectively.

Article 116. Provision of state guarantees of the Russian Federation

1. The Government of the Russian Federation has the right to make decisions in the form of an act of the Government of the Russian Federation on the provision of state guarantees to the Russian Federation in accordance with the federal law on the federal budget for the corresponding year and planning period. The Ministry of Finance of the Russian Federation has the right to make decisions on the provision of state guarantees to the Russian Federation in the amount and in cases established by the federal law on the federal budget for the corresponding year and planning period and acts of the Government of the Russian Federation adopted in accordance with it.

The act of the Government of the Russian Federation (act of the Ministry of Finance of the Russian Federation) on the provision of a state guarantee to the Russian Federation must indicate:

a person to ensure the fulfillment of whose obligations a state guarantee of the Russian Federation is provided;

limit of obligations under the state guarantee of the Russian Federation;

basic conditions of the state guarantee of the Russian Federation.

2. The Ministry of Finance of the Russian Federation, in accordance with an act of the Government of the Russian Federation (act of the Ministry of Finance of the Russian Federation), on behalf of the Russian Federation, enters into agreements on the provision of state guarantees of the Russian Federation, on ensuring the fulfillment by the principal of his possible future obligations to compensate the guarantor in recourse to the amounts paid the guarantor in fulfillment (partial fulfillment) of obligations under the guarantee, on the assignment to the guarantor of the rights of the beneficiary's claim to the principal, other contracts (agreements) in accordance with the act of the Government of the Russian Federation (act of the Ministry of Finance of the Russian Federation) and issues state guarantees of the Russian Federation.

• 3. State guarantees of the Russian Federation cannot be provided to ensure the fulfillment of obligations of state or municipal unitary enterprises, with the exception of federal state unitary enterprises.
• 4. The total amount of obligations arising from state guarantees of the Russian Federation in the currency of the Russian Federation is included in the state internal debt of the Russian Federation as a type of debt obligation.

The total amount of obligations arising from state guarantees of the Russian Federation in foreign currency is included in the state external debt of the Russian Federation as a type of debt obligation.

• 5. The provision and execution of the state guarantee of the Russian Federation are subject to reflection in the State Debt Book of the Russian Federation.
• 6. The Ministry of Finance of the Russian Federation keeps records of issued state guarantees of the Russian Federation, reduction of state debt in the event of fulfillment by principals or third parties of the principal’s obligations secured by state guarantees of the Russian Federation, as well as in the case of payments made by the guarantor under issued state guarantees of the Russian Federation.

Article 117. Provision of state guarantees of the constituent entities of the Russian Federation, municipal guarantees

In accordance with Federal Law dated December 3, 2012 N 244-FZ, from January 1, 2014, in paragraph 1 of Article 117, the words “the next financial year (the next financial year and planning period)” will be replaced with the words “the next financial year and planning period.”

• 1. On behalf of the subject of the Russian Federation, state guarantees of the subject of the Russian Federation are provided by the highest executive body of state power of the subject of the Russian Federation within the total amount of guarantees provided, specified in the law of the subject of the Russian Federation on the budget for the next financial year (the next financial year and planning period), in in accordance with the requirements of this Code and in the manner established by the law of the constituent entity of the Russian Federation.
• 2. On behalf of the municipality, municipal guarantees are provided by the local administration of the municipality within the total amount of guarantees provided, specified in the decision of the representative body of the municipality on the budget for the next financial year (the next financial year and planning period), in accordance with the requirements of this Code and in the procedure established by municipal legal acts.
• 3. The highest executive body of state power of a constituent entity of the Russian Federation, the local administration of a municipal entity enter into agreements on the provision of state guarantees of a constituent entity of the Russian Federation or municipal guarantees, on ensuring the fulfillment by the principal of his possible future obligations to compensate the guarantor in order to regress the amounts paid by the guarantor in fulfillment (partial fulfillment) of obligations under the guarantee, and issue state guarantees of the constituent entity of the Russian Federation or municipal guarantees.

The procedure and timing of compensation by the principal to the guarantor by way of recourse for amounts paid by the guarantor in fulfillment (partial fulfillment) of obligations under the guarantee are determined by the agreement between the guarantor and the principal. In the absence of an agreement between the parties on these issues, satisfaction of the guarantor's recourse claim against the principal is carried out in the manner and within the time frame specified in the guarantor's claim.

4. The total amount of obligations arising from state guarantees of a constituent entity of the Russian Federation in the currency of the Russian Federation, as well as state guarantees of a constituent entity of the Russian Federation in foreign currency, provided in accordance with paragraph 2 of Article 104 of this Code, is included in the state internal debt of a constituent entity of the Russian Federation as type of debt obligation.

The total amount of obligations arising from municipal guarantees in the currency of the Russian Federation, as well as municipal guarantees in foreign currency provided in accordance with paragraph 2 of Article 104 of this Code, is included in the municipal debt as a type of debt obligation.

5. The provision and execution of a state guarantee of a constituent entity of the Russian Federation is subject to reflection in the state debt book of a constituent entity of the Russian Federation.

The provision and execution of a municipal guarantee is subject to reflection in the municipal debt book.

6. The financial authority of a constituent entity of the Russian Federation, the financial authority of a municipal entity shall keep records of issued guarantees, the fulfillment of the principal’s obligations secured by the guarantees, as well as records of the guarantor’s payments under the issued guarantees.

Article 118. Repealed. - Federal Law of December 28, 2004 N 182-FZ.

Article 119. Service of state (municipal) debt

• 1. Service of state (municipal) debt refers to operations for the payment of income on state and municipal debt obligations in the form of interest on them and (or) discount, carried out at the expense of the corresponding budget.
• 2. Implementation by the Central Bank of the Russian Federation, credit institution or another specialized financial organization, the functions of the general agent (agent) of the Government of the Russian Federation for servicing debt obligations of the Russian Federation, as well as their placement, redemption, exchange and repayment are carried out on the basis of agency agreements concluded with the Ministry of Finance of the Russian Federation.
• 3. The Central Bank of the Russian Federation performs the functions of the general agent specified in paragraph 2 of this article free of charge.
• 4. Payment for the services of agents for the implementation of their functions provided for in agency agreements concluded with the Ministry of Finance of the Russian Federation is made from the federal budget.
• 5. The performance by a credit organization or other specialized financial organization of the functions of a general agent (agent) of the executive body of state power of a constituent entity of the Russian Federation for servicing debt obligations of a constituent entity of the Russian Federation, as well as their placement, redemption, exchange and repayment is carried out on the basis of agency agreements concluded with the executive a government body of a constituent entity of the Russian Federation that carries out government borrowings on behalf of the constituent entity of the Russian Federation.
• 6. Payment for the services of agents for the implementation of their functions provided for by agency agreements concluded with the executive body of state power of a constituent entity of the Russian Federation, carrying out government borrowings on behalf of the constituent entity of the Russian Federation, is made from the budget of the constituent entity of the Russian Federation.
• 7. The performance by a credit organization or other specialized financial organization of the functions of a general agent (agent) of the local administration for servicing municipal debt obligations, as well as their placement, redemption, exchange and repayment is carried out on the basis of agency agreements concluded with the local administration.
• 8. Payment for the services of agents for the implementation of their functions provided for in agency agreements concluded with the local administration is made from the local budget.

Article 120. Accounting and registration of state and municipal debt obligations

Accounting and registration of government debt obligations of the Russian Federation are carried out in the state debt books of internal and external debt of the Russian Federation (hereinafter referred to as the State Debt Book of the Russian Federation).

Accounting and registration of state debt obligations of a constituent entity of the Russian Federation are carried out in the state debt book of a constituent entity of the Russian Federation.

Accounting and registration of municipal debt obligations of a municipal entity are carried out in the municipal debt book of the municipal entity.

Article 121. State debt book of the Russian Federation, state debt book of a constituent entity of the Russian Federation, municipal debt book

1. The State Debt Book of the Russian Federation is maintained by the Ministry of Finance of the Russian Federation.

The State Debt Book of the Russian Federation contains information on the volume of debt obligations (including guarantees) of the Russian Federation, the date of occurrence of obligations, the fulfillment of these obligations in whole or in part, as well as other information.

Information on state internal debt obligations of the Russian Federation is entered into the State Debt Book of the Russian Federation within a period not exceeding five working days from the moment the corresponding obligation arises.

Information on government external debt obligations of the Russian Federation is entered into the State Debt Book of the Russian Federation within five working days from the moment the Ministry of Finance of the Russian Federation receives the relevant documents confirming the occurrence of these obligations.

The volume of information and the procedure for entering it into the State Debt Book of the Russian Federation are determined by the Ministry of Finance of the Russian Federation.

2. Maintaining the state debt book of a subject of the Russian Federation and the municipal debt book is carried out respectively by the financial body of the subject of the Russian Federation, the financial body of the municipality.

Information on debt obligations is entered by the specified bodies into the state debt book of a constituent entity of the Russian Federation or municipal debt book within a period not exceeding five working days from the moment the corresponding obligation arises.

3. The state debt book of a constituent entity of the Russian Federation contains information on the volume of debt obligations of a constituent entity of the Russian Federation by type of these obligations, the date of their occurrence and fulfillment in whole or in part, forms of securing obligations, as well as other information, the composition of which, the procedure and deadline for its entry in the state debt book of a constituent entity of the Russian Federation are established by the financial authority of the constituent entity of the Russian Federation.

The classification of debt obligations of a constituent entity of the Russian Federation as external or internal debt when they are recorded in the state debt book of a constituent entity of the Russian Federation is carried out in the currency of the debt in which the monetary obligation is determined when it arises, based on the definitions of external and internal debt established by this Code.

The state debt book of a constituent entity of the Russian Federation also takes into account information about overdue debt for the fulfillment of debt obligations of a constituent entity of the Russian Federation.

4. The municipal debt book contains information on the volume of debt obligations of the municipality by type of these obligations, the date of their occurrence and fulfillment in whole or in part, forms of security for obligations, as well as other information, the composition of which, the procedure and deadline for its entry into the municipal debt book are established by the local administration.

Accounting for debt obligations of a municipal entity in the municipal debt book is carried out in the currency of the debt in which the monetary obligation is determined when it arises, based on the definitions of external and internal debt established by this Code.

The municipal debt book of the municipality also takes into account information about overdue debt for the execution of municipal debt obligations.

5. Information on the debt obligations of a municipal entity reflected in the municipal debt book is subject to transfer to the financial authority of the relevant constituent entity of the Russian Federation. The volume of information, the procedure and timing of its transfer are established by the financial authority of the relevant constituent entity of the Russian Federation.

Responsibility for the reliability of data on the debt obligations of a municipal entity transferred to the financial authority of the corresponding constituent entity of the Russian Federation lies with the financial authority of the municipal entity.

6. Information on the debt obligations of a constituent entity of the Russian Federation, reflected in the state debt book of a constituent entity of the Russian Federation, as well as information on debt obligations of municipalities in a given constituent entity of the Russian Federation is subject to transfer to the Ministry of Finance of the Russian Federation by the financial authority of the constituent entity of the Russian Federation. The volume of transmitted information, the procedure and timing of its transmission are established by the Ministry of Finance of the Russian Federation.

Responsibility for the reliability of data transmitted to the Ministry of Finance of the Russian Federation on debt obligations of a constituent entity of the Russian Federation and its municipalities lies with the financial authority of the constituent entity of the Russian Federation.