State internal and external debt

It is difficult to find a country that would not resort to external sources of financing , when carrying out economic reforms . Correctly used foreign loans and credits accelerate economic development, solve some of the socio-economic problems.

The concept of public debt

Each country has a certain level of expenditure, and when they can not be covered on their own, a budget deficit arises . In this regard, there is a need to attract additional funds, which together constitute a national debt. It is understood as all types of debt obligations of the Russian Federation, which arose several years ago or just before certain creditors. This includes the obligation to provide the Russian Federation with government guarantees expressed in the currency of the country (rubles). Servicing of public debt is manifested in the payment of all principal amounts of debt and interest on it. In simple terms, public debt is the amount that the state owes its entire creditor.

State internal and external debt

Currently, there are several classifications of public debt. One of them is allocated state internal and external debt.

The state domestic debt of the Russian Federation is that part of a debt which concerns internal loans and other promissory notes to creditors-residents. Such debt is treated as a loan of the population to itself. However, it does not affect the overall size of the total wealth of the nation. It should be noted that domestic public debt is rather a rule in the economy, rather than an exception. Its existence is quite normal, except when its amount becomes very high. More specifically, the state domestic debt of the Russian Federation consists of the following: a nominal amount for securities of the Russian Federation, the volume of the principal debt for loans received by the RF, the amount of the principal debt on budgetary credits and loans that were received by the state from budgets of other levels, and Of the volume of obligations of the Russian Federation on state obligations granted by itself.

The state external debt of Russia is that part of the public debt that concerns external loans and other obligations of the Russian Federation to non-resident creditors. The external debt includes obligations of the Government of the Russian Federation, expressed in foreign currency. The fact that Russia has an external debt is also quite normal, not only for it, but for any other country. True, there are borders, for which the public external debt becomes quite dangerous. A large number of external loans may lead to the country's dependence on creditors. The International Bank for Reconstruction and Development classifies external debt as follows: its low level should be less than 18% in relation to exports of goods and services, moderate - 18-30%. Accordingly, higher indicators are of a threatening nature for the development of the economy and the state as a whole.

State internal and external debt is a characteristic of the performance of all credit operations that have been committed by the state. Its dynamics, absolute magnitude and rate of change are a reflection of the state of the economy and the financial system, as well as of how effectively the state structure functions.

Thus, the state internal and external debt is a normal phenomenon for the modern development of the Russian Federation. It is simply necessary if you do not have enough money to develop new industries or when you need to bring the economy of their plight as quickly as possible.