The mode of issue and circulation of government securities of the constituent entities of the Russian Federation and municipalities.
State securities- this is a form of existence of the state internal debt, these are debt securities, the issuer of which is the state.
Along with government securities, it is extremely important to mention municipal securities - a way to attract financial resources local authorities in case of shortage local budget or for off-budget purposes by issuing debt securities.
Like any other types of emissive securities, government securities are put into circulation both in documentary and non-documentary form in the form of registered or bearer securities.
The issue of state and municipal securities is carried out in the form of separate issues, each of which is assigned a separate state registration number.
The issuers of state and municipal securities may be the executive bodies of state power of the Russian Federation, constituent entities of the Russian Federation, local governments. When deciding to issue securities, government agency, which is the issuer, approves the General Conditions for the Issue and Circulation of State or Municipal Securities. These General Conditions are adopted in the form of regulatory legal acts and include information on the types of securities issued, on the form of their issue, the maturity of this type of securities (short-term, long-term, medium-term), on the currency of obligations, on the features of the fulfillment of obligations providing for the right to receive other than cash, property equivalent, as well as on restrictions on the transferability of securities, or on limiting the circle of persons to whom these securities may belong by the right of ownership or other real right. General conditions of issue determine general order and features of the issue and circulation of securities.
Normative legal act, containing the conditions for issuing securities of the subject Russian Federation or municipal securities, is subject to state registration in the federal executive body authorized by the government of the Russian Federation to draw up and (or) execute the federal budget. The issuer of government securities of the Russian Federation is approved directly by the government of the Russian Federation. As a rule, the issuer of government securities is the Ministry of Finance of the Russian Federation.
Government securities certify the debt obligations of the Russian Federation or subjects of the Russian Federation to legal entities and individuals and form part of the public debt. Debt obligations of the Russian Federation, constituent entities of the Russian Federation, municipalities that constitute the state domestic debt must be issued in national currency. Foreign currency͵ conditional monetary units and precious metals are indicated in the General Conditions for the Issue and Circulation of State or Municipal Securities, as well as in the details of certificates as a relevant clause, on the basis of which the amount of payment for these state and municipal securities is determined. This means that the redemption of these securities will also be made in the currency of the Russian Federation.
Legislatively limited the ability of the subjects of the Russian Federation in the implementation of the issue of government securities, leading to the formation of external debt. This is primarily due to the fact that in some cases the unsatisfactory financial condition of a subject of the Russian Federation creates a threat of non-fulfillment of obligations on issued securities. In order to prevent such situations, the Law of the Russian Federation ʼʼOn the features of the issue and circulation of state and municipal securitiesʼʼ dated 07/29/1998 ᴦ. No. 136-FZ provides special conditions, in the presence of which the subject of the Russian Federation has the right to issue an external loan:
First of all, the issuer is obliged, simultaneously with the state registration of the prospectus for the issue of government securities, to provide information on income, expenses, the size of the budget deficit and sources of its financing for three recent years prior to the specified issue.
Secondly, the issuer is obliged to provide information on the security of the execution of its budgets in accordance with the budgetary legislation of the Russian Federation and tax legislation Russian Federation.
Thirdly, the issuer must obtain permission to carry out currency transactions associated with the movement of capital, in the manner prescribed by the legislation of the Russian Federation.
Fourth, the issuer must obtain, in accordance with international standards credit rating determined by at least two leading international rating agencies.
The mode of issue and circulation of government securities of the constituent entities of the Russian Federation and municipalities. - concept and types. Classification and features of the category "Mode of issue and circulation of government securities of subjects of the Russian Federation and municipalities." 2017, 2018.
The appearance of bonds of subjects of the Russian Federation is inextricably linked with the desire to overcome the negative consequences for Russian economy, which took place as a result of mutual non-payments of state enterprises, regional administrations. Market economy assumed the use of market borrowing instruments, which was reflected in the corresponding changes in the legislative framework. So on Russian market securities, the first bonds of the constituent entities of the Russian Federation ("rural" bonds, agrobonds) appeared. By re-issuing the debt of the agro-industrial complex to the Ministry of Finance of the Russian Federation into securities for their subsequent sale on stock market and the direction of the received funds to the Fund concessional lending The agro-industrial complex attempted to change the existing practice of supporting the domestic agro-industrial complex (hereinafter - the agro-industrial complex). As of June 1, 1998 70 constituent entities of the Russian Federation re-registered their debt by issuing securities that were deposited with the depository of Onexim Bank for total amount 8044 billion rubles The appearance of these bonds was promoted, first of all, by two factors: lack of money in federal budget for the formation of a sufficient amount of the Fund for concessional lending to the agro-industrial complex and the presence of a large debt of the constituent entities of the Russian Federation to the Ministry of Finance of the Russian Federation. The main parameters of bonds are: non-documentary, registered, coupon (10% per annum); face value - 10 million rubles. (in 1997 prices); maturity - up to three years. The income tax on transactions with bonds is set at 15% (the same as on other government securities). Initially, the investment attractiveness of bonds of subjects of the Russian Federation was determined high reliability and liquidity, since the Ministry of Finance, when registering issue prospectuses, obliged the regions to provide funds in the budget for the redemption of bonds. Agrobonds were issued in three tranches maturing in 1998, 1999 and 2000. Before purchasing bonds of subjects of the Russian Federation, investors carried out a detailed analysis financial condition issuers on the basis of objective data, which made it possible to form an adequate assessment of the risk of investments. During 1997, almost 60% of the bonds were sold out of the total volume of the issue at auctions. The sale of securities in all three tranches was carried out at prices providing a yield to maturity of 25-29%. Thus, a large-scale acquaintance of creditors with the regions took place. In the crisis year of 1998, only a small part of the subjects of the Russian Federation fulfilled their obligations to investors to redeem bonds: the Republics of Khakassia, Sakha (Yakutia), Chuvashia, Komi, Karelia, Buryatia; Leningrad, Kaliningrad, Tyumen, Tomsk, Chita, Astrakhan, Tambov, Orenburg, Vologda, Volgograd regions; Krasnodar and Krasnoyarsk Territory. By the end of 1999 the situation had stabilized. Some regions redeemed their securities ahead of schedule, in part or in full for the purpose of redemption. Others negotiated with investors, setting a certain schedule for fulfilling their obligations, thus obtaining a deferral of payment on debts. However, most constituent entities of the Russian Federation refused the services of a paying agent to repay debts to creditors, thus changing the bond redemption scheme approved by the Ministry of Finance. As a result, many investors - holders of bonds of constituent entities of the Russian Federation, in accordance with the current legislation, were forced to apply to arbitration courts location of the defendant. Continues today a difficult situation with the redemption of bonds of subjects of the Russian Federation. Russian and foreign investors who invested significant amounts of money in agricultural bonds suffered significant losses, which cannot but affect the reputation of not only the subjects of the Russian Federation, but also the state as a whole. The experience of placing bonded loans of the subjects of the Russian Federation has shown that it is necessary to develop and improve the regulatory and legislative framework securities market; increase information transparency of the market, efficiency judicial system generally; strengthen control by the Ministry of Finance in relation to financial activities subjects of the Russian Federation placing new bond issues; strengthen federal control for the execution of laws in terms of loans of subjects of the Russian Federation and their financial activities; establish the limits of issuers' liability to investors, developing public policy in the protection of their rights. On November 21, 2000, in connection with the reorganization of Onexim Bank and the merger with Rosbank, the functions of the authorized depository were transferred to the depositary of Ros-bank. At present, the all-Russian market of subfederal bonds is represented by transactions that are concentrated on the trading floors of St. Petersburg, Moscow and some regional centers. According to the rating center AK&M, the first place in the rating is occupied by Moscow and St. Petersburg, which have the highest ability to pay their obligations. This is based on both favorable prerequisites, due to the strong economic base of cities and the balance budget indicators, which is largely associated with the success financial policy authorities, developed financial market and high investment attractiveness.
Economic essence of government securities
Features of the issue of state and municipal securities
Characteristics of certain types of government securities
When the state performs its functions, it becomes necessary to attract free funds belonging to business entities. In practice, there are several ways to attract free working capital of legal and individuals which, despite certain differences, are characterized by mandatory regulatory regulation of their order, publicity, compensation, return and voluntariness. One of the most common methods of attracting funds is the conduct by the state, represented by its official and authorized bodies, of borrowing operations, as a result of which the state domestic debt is formed, which, from a legal point of view, is a debt obligation of the state.
Government debt obligations can be formalized in the form of loans received by the Government of the Russian Federation, debt obligations guaranteed by the Government of the Russian Federation, and government loans issued through the issuance of government securities.
Government securities- a type of securities issued on behalf of the state for the purpose of placing government loans and mobilizing funds to replenish state budget revenues, cover the budget deficit and formalize government debt. The placement of government securities leads to government obligations, debt.
In accordance with federal law dated July 29, 1998 N 136-FZ "On the Features of the Issue and Circulation of State and Municipal Securities" government securities of the Russian Federation and government securities of constituent entities of the Russian Federation are recognized as government securities. Municipal securities are securities issued on behalf of the municipality.
The issuers of state and municipal securities are, respectively, the executive bodies of state power and local administrations, which issue securities on behalf of the public legal entity and bear obligations to the owners of securities to exercise the rights secured by these securities.
The issuer of government securities of the Russian Federation is the Government of the Russian Federation or its authorized federal agency executive power. For example, the Ministry of Finance of the Russian Federation or the Central Bank of Russia.
The issuer of government securities of a constituent entity of the Russian Federation is the highest executive body of state power of a constituent entity of the Russian Federation or a financial body of a constituent entity of the Russian Federation, endowed by the law of a constituent entity of the Russian Federation with the right to make government borrowings of a constituent entity of the Russian Federation.
The issuer of municipal securities is the local administration, endowed by the charter of the municipality with the right to implement municipal borrowings.
Placement of government securities is usually carried out through central banks or ministries of finance. The main investors, depending on the type of issued government securities, are both legal entities and individuals, residents and non-residents. Government securities are placed among the population, pension and insurance companies and funds, banks, investment companies and funds, etc. The main purchasers of government bonds are, as a rule, commercial banks.
The issue of government securities is aimed at solving the following tasks:
1) covering the deficit of various budgets of the country's budget system on a non-inflationary basis, that is, without additional issuance of money into circulation. Government expenditures almost always exceed government revenues, therefore, in addition to traditional sources (taxes, fees, deductions, etc.), external and internal loans are used. The method of financing government spending based on the issuance of government securities, proposed by D. Keynes, is widely used in developed countries as one of the means of regulating the economy. The essence of deficit financing lies in the fact that in order to cover government spending in a disguised form, a part of the national income belonging to the population and business entities is withdrawn. The placement of government securities in the primary market means the accumulation of temporarily free funds of private investors in the economy. There is a redistribution of funds in favor of financing the deficit budget. In this case, the state acts as a borrower, and individuals, banks, enterprises, other states, etc., can be creditors.
2) target financing government programs in the field of housing construction, infrastructure, social security, etc.;
3) covering short-term cash gaps in the budget. The receipt of revenues to the budget, as a rule, is uneven, while budget expenditures are distributed more evenly, therefore, to cover cash gaps, the state issues short-term securities, including securities that can be used to pay taxes;
4) raising funds to pay off debts on other government securities;
5) regulation of economic activity: the money supply in circulation, the impact on prices and inflation, on spending and investment directions, economic growth, balance of payments, etc. For example, the operations of the Central Bank in the open market. budget deficit narrows its ability to regulate the credit market, in all countries restrictions are placed on the government's access to these resources. The government securities market additionally provides a mechanism and tools for the Central Bank to conduct open market operations, as well as to set interest rates on government borrowings in the securities market, as an instrument of its monetary policy;
6) regulation of the liquidity of the country's banking system (by acquiring government securities, banks receive fairly highly liquid and reliable assets at their disposal);
7) lower costs of servicing public debt compared to bank lending. The high liquidity of government securities leads to a decrease interest rates on them due to lower liquidity risk.
Depending on the purpose of the release, there are:
1. Debt securities to cover the permanent deficit of the state budget, which is carried over from year to year. As a rule, medium-term and long-term securities are issued for this very purpose and serve the systematic debt of the state.
2. Securities to cover temporary budget deficits (cash gaps), which are formed in connection with a certain cyclicality of tax receipts and fixed expenditures from the budget.
3. Target bonds issued for the implementation of specific projects. For example, in the UK, the government issued transport bonds, as a result of which resources were generated for the nationalization of transport. In Japan, government issues of construction bonds are widely practiced for the implementation of large-scale road construction programs, etc. In Russia, bonds of High-Speed Railroads JSC, which were issued under the guarantee of the Russian government, can be considered as such securities, the proceeds from the sale of these bonds were used to finance construction of the railway line Moscow - St. Petersburg.
4. Securities intended to cover the public debt by enterprises and organizations. Such types of securities were quite widely used in Russia in conditions of systematic non-payments, when enterprises did not pay to the budget, and the government could not pay off state orders. To solve this problem, the Ministry of Finance of the Russian Federation in 1994 - 1996 issued treasury bills, executed on the state order and financed from the federal budget.
Government securities have the following advantages:
High level of reliability for investment;
Minimal risk of loss of fixed capital and income on it,
Preferential taxation compared to other securities or areas of capital investment (there are no taxes on transactions with them and on the income received from them, either absent or set at a lower level).
Unfortunately, in our country, these advantages are not always available when issuing government securities.
The placement of government securities is carried out by various methods: auctions, open sale to everyone fixed prices, closed distribution among a certain circle of investors, etc.
Movements of government securities, a set of acts of their purchase and sale, form the corresponding segment of the national stock market. While government securities are in circulation, they can be sold and bought at any time. As a result, a secondary market for state securities is being formed.
The history of the emergence of government securities in the Russian Federation
Government short-term zero-coupon bonds (GKO)
Federal loan bonds (OFZ-PK)
Bonds of the state domestic currency loan(OVVZ)
Bonds of the Bank of Russia (OBR)
Government Savings Loan Bonds (OGSS)
Government long-term bonds (GDO)
Securities of subjects of the Russian Federation
Characteristics of government securities internal loan Russian Federation and subjects of the Russian Federation
The market obligations of the internal debt of the federal government of Russia include state short-term zero-coupon bonds (GKBO), federal loan bonds with variable, constant and fixed coupons (OFZ-PK, OFZ-PD, OFZ-FK), federal loan bonds with debt amortization (OFZ- HELL),
bonds of the state savings loan (OGSS), bonds of the state internal foreign currency loan (OGVVZ), state
gift long-term bonds and other securities that
in accordance with Russian legislation equated to the state
gift securities (OBR - bonds of the Bank of Russia).
Securities issued on behalf of subjects of the Russian Federation are recognized
government securities of the constituent entities of the Russian Federation -
tions. They mainly consist of domestic bonds,
the main varieties of which are discount, coupon
short-term, medium-term bonds and bonds similar to
GKBO and OFZ, agricultural bonds, housing certificates and etc.
The issue and circulation of government securities in the Russian Federation is regulated by
are governed by the Civil Code of the Russian Federation; tax code RF; Budget
jet code of the Russian Federation; Federal Law of the Russian Federation "On the federal budget for the next
financial year", "On the features of the issue and circulation of government
private and municipal securities” dated July 29, 1998; About the market
securities” dated April 22, 1996 with additions and amendments; as well as
others regulations, including letters and instructions from the Ministry of Finance
on the Russian Federation and the Central Bank of the Russian Federation.
3.2.1. Government short-term zero-coupon bonds
(SCBO)
General principles functioning of the Russian government market
domestic short-term zero-coupon bonds were developed
within the framework of the Russian-American Banking Forum. For their
implementation in the Central Bank of Russia, the Department of Securities was created
securities, dealing with the placement of government bonds, operations on the second
retail market and settlements between GKO market participants. In July
1992 The Central Bank of Russia held a competition among Russian stock exchanges,
the winner of which was recognized as the Moscow Interbank
Lute Exchange (MICEX). On May 18, 1993, the first auction was held on the MICEX
option for placement of three-month GKO.1
Issue of government short-term zero-coupon bonds
carried out in separate releases. As part of the release,
tranches, categories, numbers of securities are established.
Tranche- part of the securities of a certain issue, placed
within its volume and during the period of circulation of securities of this
release.
GKO issuance is issued by a global certificate, which
transferred by the Ministry of Finance of the Russian Federation to the Bank of Russia ten days before the date of the auction. Each issue is subject to state registration.
State registration codes for GKOs consist of nine significant digits: Х1Х2ХЗХ4Х5Х6Х7Х8Х9, where:
XI - indicates the type of security; number "2" - means promissory note;
X2 - type and maturity of the security; figure "1" - for government short-term zero-coupon bonds with a maturity of up to 1 year; number "2" - more than 1 year;
ХЗХ4Х5 - serial number of issue of this type;
X6X7X8 - letters RMF (Russian Ministry of Finance) indicate the issuer;
X9 - the letter 5 - indicates that this security is state-owned.
In 1993-1998 SCBOs were issued in separate tranches, more often
only 3-6 months. In 1994, 31 auctions were held for the placement
niya of zero-coupon SCBO: 18 - with a maturity of three months, 10 - with
maturities of six months and 3 - one year. The beginning of 1995
was characterized by an abrupt growth of the dollar exchange rate, which required
additional budget spending. In the primary placement market
bonds were exchanged at a price of 70-80% of the face value, which was
achieved some market stability. Market profitability level
3-6-month GKBO reached 105-155% per annum.
Growing needs of the government to finance the deficit
budget contributed to the creation of a pyramid of state internal
early debt of the Russian Federation. In July-August 1998, the GKBO trade was pre-
shortened. The government of the Russian Federation announced that it could not repay its
SCBO and decided to forcibly re-register them as state
bonds with more long periods maturity (three years or more)
lee). Since February 1999, the issue and circulation of GKBO have resumed.
Specification and main characteristics of GKBO are presented
in the form of a table (Table 3.2.1).
No interest is accrued on the GKBO. Ministry of Finance of the Russian Federation from the very beginning
places them at a price below par (with a discount). Because the
If the bonds are carried out at par, then the discount is represented by
It is the income that the state pays to the holders of the GKBO.
During the functioning of the GKBO market, the following
situations:
Table 3.2.1
Specification and main characteristics of GKBO
1.
An auction is held to place bonds without redemption
previous releases.
2.
bonds more than the redemption amount.
3.
An auction is being held to place bonds with the simultaneous
redemption of previous issues, and proceeds from the sale of
bonds is less than the redemption amount.
4.
There is a redemption of bond issues without a transfer
primary auction.
In different situations, the actions of the Ministry of Finance of the Russian Federation and the Bank of Russia are determined
shared by special agreement. In the first case, the Bank of Russia
is required to credit the proceeds received within five days after the audit
deduction of the auction to the federal budget. In the second case, the Bank of Russia
from the proceeds from the sale of bonds covers the costs of repayment
previous issues and sends the remaining funds to the federation
real budget.
In the third case, two situations may arise. If the volume is
of the placed issue exceeds the parameters of the redeemed ones, but as a result
At the end of the auction, an insufficient amount was received to carry out
redemption of previous issues, the Bank of Russia acquires bonds
gasification of the placed issue in the amount that provides full
covering the missing amounts, but within the limit set for
lending by the Bank of Russia to the federal government. When
if these measures are not enough or in case 4, the Ministry of Finance of the Russian Federation sends
allocates budgetary funds for the fulfillment of its obligations.
Bonds of the Bank of Russia
Bonds of the Bank of Russia (OBR), which received the status of state
securities with a face value of 1000 rubles. appeared immediately after the financial
crisis in 1998 as a complete analogue of the SCBO. As an issuer
bonds were issued by the Central Bank of Russia, the maturity of bonds -
up to one year. A discount bond could only be bought by credit institutions.
State registration codes for OBR consist of nine digits
higher ranks:
Х1Х2ХЗХ4Х5Х6Х7Х8Х9,
where X1 - indicates the type of security, the number "2" indicates - ob-
gasia;
X2 - indicates the type of bond: "1" - zero coupon;
ХЗ - indicates the period of circulation of the security, the number "1" - for
bonds with maturity up to one year;
X4X5X6 - serial number of the bond issue;
X7X8X9 - letters CBR (Central Bank of Russia - English, Central
Bank of Russia) - indicate the issuer.
The OBR emission was intended to make up for the disappearance of most
properties of tools previously used commercial banks
for investment of free resources and regulation of own
liquidity, as a result of the process of restructuring the state
of the internal debt of the Russian Federation.
The need to separate the functions of raising funds for fi-
funding budget deficit and bank liquidity management
connected with the differences in the tasks facing the Ministry
finance and central bank. In countries with market economies
There is a clear division of powers of the Ministry of Finance
owls and the central bank. Therefore, the central banks of such countries
to regulate the level of interest rates issue their own
securities (in particular, this is practiced in Brazil, Mexico,
Venezuela, Poland, etc.). In developed countries, the need to issue
own securities by central banks is often associated
with the fact that the budget surplus allows the governments of these countries
do without borrowing. The monetary authorities of such countries need an instrument that replaces the state
bonds. To this end, the central banks of countries such as Bel-
gia, Finland, the Netherlands, issue their own securities.
In Russia, the possibility of issuing securities of the Central Bank
been discussed for several years. However, at that moment
The first priority was the development of market-based instruments for
cover the budget deficit. government securities had
short term circulation, and the Central Bank actively used
them for the purpose of monetary regulation. Release of OBR with steam
meters, similar to government bonds, could create
undesirable competition to the GKBO-OFZ market.
After the restructuring, government bonds lost their
liquidity, full functioning of the refinancing system
ing became impossible due to the lack of adequate support.
There was a need to introduce new tools for the regulation
liquidity management and management of interest rate
nyh rates of the monetary market of the country. At the same time, emission
OBR can become an alternative to investing in foreign currency.
OBRs are a tool that responds flexibly to change
market conditions. In 1999, during the period of lack of free
tender funds, the placement yield offered by the Bank of Russia
these (60-80% per annum), did not suit the dealers, and therefore the turnover
OBR market were insignificant. High currency volatility
new market allowed its participants to hope for a higher
yield compared to the yield offered by the Central
bank on newly placed instruments.
By the end of 1999, credit institutions began to show pain
great interest in the OBR market. The most active market participants
bonds of the Bank of Russia became regional medium and small banks
which were the least affected by the financial crisis.
Such banks have largely managed to retain their clientele, and they
had a sufficient amount of temporarily free resources.
The first auction where the initial placement of the OBR took place,
passed September 30th. Prior to this, the auctions, which were announced
lyal Bank of Russia, were declared invalid due to underestimated
prices offered by dealers in bids. However, later on, the percentage
ny rates gradually decreased (up to 41%), and the holding of auctions
for the placement of new issues of the OBR has acquired a regular character.
Since 1999, the GKBO-OFZ circulation has resumed, which is practically
SK did not affect the volume of trade in the bonds of the Bank of Russia.
The average turnover of the OBR market in this period was 145 million rubles. in a day. On February 17, 1999, the placement of new issues was temporarily
was stopped due to disagreements between the FCSM and the Central
of the Bank of Russia on the legitimacy of the issue of OBR and compliance with the procedure
dur issuance of bonds provided for by the Federal Law of the Russian Federation "On the market for securities
papers."
It is now recognized that the Bank of Russia issues its
bonds not for the purpose of raising funds to finance their
expenses, but in order to implement monetary policy. By-
Since liquidity management is operational, the Bank
Russia should be able to make flexible decisions about
launch of OBR in the volumes stipulated by the legislation of Russia.
Amendments to the laws "On central bank Russian Federation"
and “On the Securities Market”, as well as other changes in the legislation
allowed to determine the maximum amount of OBR of all issues,
in circulation, within the difference between the maximum
possible amount of required reserves credit institutions
(which is 20% of the liabilities of commercial banks) and the amount
required reserves of commercial banks in the Bank of Russia. So
Thus, the potential volume of the OBR market at the moment is up to
sufficient to attract free short-term funds of banks
and formation of a representative assessment market value per-
borrowings.
The specification and main characteristics of OBR are presented below
in table. 3.2.4.
Table 3.2.4
Securities of subjects of the Russian Federation
The appearance of bonds of the constituent entities of the Russian Federation is inextricably linked with the desire
to overcome the negative consequences for the Russian economy,
which took place as a result of mutual non-payments of state-
ny enterprises, regional administrations. Market economy
involved the use of market-based borrowing instruments,
which is reflected in the relevant legislative changes
base.
Thus, the first bonds appeared on the Russian securities market
subjects of the Russian Federation (“rural” bonds, agrobonds). An attempt was made to change the existing practice of supporting the domestic agro-industrial complex (hereinafter referred to as the AIC) by reissuing the debt of the agro-industrial complex to the Ministry of Finance of the Russian Federation into securities for their subsequent sale on the stock market and directing the funds received to the Fund for preferential lending to the agro-industrial complex. As of June 1, 1998, 70 constituent entities of the Russian Federation re-registered their debt by issuing securities that were deposited with the depository of Oneximbank for a total of 8,044 billion rubles.
The appearance of these bonds was facilitated, first of all, by two factors: the lack of money in the federal budget for the formation of a sufficient amount of the Fund for concessional lending to the agro-industrial complex and the presence of a large debt of the constituent entities of the Russian Federation to the Ministry of Finance of the Russian Federation. Main
the parameters of the bonds are: non-documentary, registered, coupon (10% per annum); face value - 10 million rubles. (in 1997 prices); maturity - up to 3 years.
The income tax on transactions with bonds is set at the rate of
15% (same as for other government securities).
Initially, the investment attractiveness of bonds of the constituent entities of the Russian Federation was determined by high reliability and liquidity, since the Ministry of Finance, when registering issue prospectuses, obliged the regions
provide funds in the budget for the redemption of bonds. Agrobonds were issued in three tranches maturing in 1998, 1999 and 2000. Before purchasing bonds of subjects of the Russian Federation, investors carried out a detailed analysis of the financial condition of issuers based on objective data, which made it possible to form an adequate
risk assessment of investments. Of the total volume of emissions for
auctions during 1997, almost 60% of the bonds were sold. The sale of securities in all three tranches was carried out at prices providing a yield to maturity of 25-29%. In this way,
a large-scale acquaintance of creditors with the regions took place.
In the crisis year of 1998, only a small part of the subjects of the Russian Federation fulfilled their obligations to investors to redeem bonds:
Republics of Khakassia, Sakha (Yakutia), Chuvashia, Komi, Karelia, Buryatia; Leningrad, Kaliningrad, Tyumen, Tomsk, Chita, Astrakhan, Tambov, Orenburg, Vologda, Volgograd regions; Krasnodar and Krasnoyarsk regions. By the end of 1999
the situation has stabilized. Some regions ahead of schedule, partially
or have fully redeemed their securities for the purpose of redemption,
Others negotiated with investors, setting a certain schedule for fulfilling their obligations, thus obtaining a deferral of payment of debts. However, most subjects of the Russian Federation
refused the services of a paying agent for debt repayment
to creditors, thus changing the bond redemption scheme approved by the Ministry of Finance. As a result, many investors
holders of bonds of constituent entities of the Russian Federation, in accordance with the current legislation, were forced to apply to arbitration courts at the location of the defendant.
Today, the difficult situation with repayment continues to persist.
bonds of subjects of the Russian Federation. Russian and foreign investors investing
living significant cash in agrobonds, suffered
significant losses, which cannot but affect the reputation of
only subjects of the Russian Federation, but also the state as a whole.
The experience of placement of bonded loans of the constituent entities of the Russian Federation showed that
that it is necessary to develop and improve the normative and legal
nodative base of the securities market; raise awareness
market transparency, efficiency of the judicial system as a whole; wuxi-
pour control from the Ministry of Finance in relation to financial activities
the value of the constituent entities of the Russian Federation placing new bonded loans;
strengthen federal control over the enforcement of laws regarding loans
subjects of the Russian Federation and their financial activities; set limits
responsibility of issuers to investors, improving the state
gift policy in the field of protection of their rights.
November 21, 2000 in connection with the reorganization of Oneximbank and the addition
the unification of the functions of the authorized depository to Rosbank
went to the depository of Rosbank.
At present, the all-Russian market of subfederal bonds
tions is represented by operations that are focused on trading areas
areas of St. Petersburg, Moscow and some regional centers.
According to the rating center AK & M first place in the ranking
occupy Moscow and St. Petersburg, which have the most
ability to pay its obligations. At the core
this - favorable prerequisites due to a strong eco-
the economic base of cities and the balance of budget indicators
zateley, which is largely due to the successful financial policy
authorities, developed financial market and high investment
attractiveness.
Test questions.
1. What types of government securities were issued during the Soviet period?
2. List the main characteristics of OFZ?
3. For what terms can SCBOs be issued?
4. Who are the buyers of OGSS?
5. What is the specificity of OGVVZ?
GOVERNMENT SECURITIES IN THE RUSSIAN FEDERATION
Government securities of the constituent entities of the Russian Federation
"...In accordance with this Federal Law, government securities of a constituent entity of the Russian Federation are recognized as securities issued on behalf of a constituent entity of the Russian Federation..."
Source:
Federal Law No. 136-FZ of July 29, 1998 (as amended on June 14, 2012) "On the Peculiarities of the Issue and Circulation of State and Municipal Securities"
Official terminology. Akademik.ru. 2012 .
Government securities of the constituent entities of the Russian Federation- securities issued on behalf of a constituent entity of the Russian Federation. The issuer of such securities is the executive authority of the constituent entity of the Russian Federation, which performs its functions in accordance with the procedure established by the legislation of the constituent entity of the Russian Federation. See also: Government securities ... ... Financial vocabulary
Government securities of the subjects of the Russian Federation- Securities issued on behalf of a subject of the Russian Federation. The issuer of securities of a constituent entity of the Russian Federation is the executive authority of the constituent entity of the Russian Federation, which performs these functions in the manner prescribed by ... ... Depository terms
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