municipal securities. Securities of constituent entities of the Russian Federation and municipal securities Types of securities of constituent entities of the Russian Federation

Government securities of the constituent entities of the Russian Federation are recognized as securities issued on behalf of a constituent entity of the Russian Federation.
The issuers of securities of the constituent entities of the Russian Federation are the executive authorities of the constituent entities of the Russian Federation.
In turn, the fulfillment of obligations of issuers on securities is carried out in accordance with the terms of issue of these securities at the expense of the treasury of the constituent entities of the Russian Federation.
By 1998, more than 60% of the constituent entities of the Russian Federation issued bonded loans in their territories. At the same time, about half of the market volume was occupied by municipal short-term bonds of St. Petersburg (MCO), which are equated to securities issued by the constituent entities of the Federation. Their total volume of emission in 1996 amounted to 7.7 trillion rubles. Thus, at the end of 1996, the weekly exchange turnover of MCOs exceeded 376 billion rubles. In addition to the St. Petersburg municipal loan, the largest were loans from Tatarstan (1 trillion rubles) and the administration of the Sverdlovsk region (500 billion rubles). The loans of the listed constituent entities of the Federation (St. Petersburg, Tatarstan, Sverdlovsk Region) together amounted to 40% of the total nominal value of the issues of loans registered in 1996, carried out by the constituent entities of the Federation. Moreover, repeated emissions were registered in these regions; for example, the second issues were made in St. Petersburg and the Sverdlovsk region, and the third issue in the Republic of Tatarstan. This is followed by loans from the administration of the Orenburg region for 1 trillion rubles, the Ministry of Finance of Tatarstan and the administration of the Irkutsk region, which issued bonds in the amount of 800 billion rubles. each, the Republic of Sakha (Yakutia) - by 400 billion rubles. and the administration of the Novosibirsk region (300 billion rubles). Among the smaller ones, it should be noted a loan from the administration of the Omsk region in the amount of 150 billion rubles.
The executive authorities of the constituent entities of the Russian Federation used financial resources obtained through the placement of bonded loans on international financial markets to reform the public sector.
Russian legislation provides for the right to issue external bonded loans by the executive authorities of the constituent entities of the Russian Federation by placing bonded loans on international financial markets. To attract external sources of financing the budget deficit, this right can only be used by those subjects of the Federation that comply with the requirements for the volume of borrowings and the volume of expenses for the repayment and servicing of all types of debt obligations. They must prepare and submit a prospectus for the issue of external bonded loans, information on budget revenues and expenditures, on the size of the deficit and sources of its financing. In addition, each subject of the Federation must receive, in accordance with international standards, a credit rating determined by at least two leading international rating agencies.
When preparing for the placement and state registration of external bonded loans by the executive authorities of the constituent entities of the Federation, it is necessary to issue bonds taking into account the priority of borrowing by the Russian Federation in international financial markets and obtain permission to carry out foreign exchange transactions related to the movement of capital.

More on the topic Government securities of the constituent entities of the Russian Federation:

1. 1.3. Russian Federation in foreign economic relations
2. 2.6. Securities and enterprise portfolio management
3. Types of debt securities issued by banks, and features of their reflection in accounting
4. Features of accounting and taxation of operations with government bonds
5. Government securities of the subjects of the Russian Federation
6. UNIT, INSURANCE, NON-STATE PENSION AND INVESTMENT FUNDS IN THE SECURITIES MARKET
7. Taxation of Income and Profits from Government Securities of Subjects of the Russian Federation and Securities of Local Self-Government Bodies

Such papers have been issued by the executive authorities of the constituent entities of the Russian Federation and local authorities since 1992. Each issue is assigned a state registration number, which consists of 11 digits:

xlx2x3x4x5x6x7x8x9xl0x11

The first and second digits (x1x2) indicate that the issuer belongs to the Russian Federation, the third and fourth digits (x3x4) indicate the type of security paper, circulation period and type of income:

• 21 - for zero-coupon securities of constituent entities of the Russian Federation or municipal securities with a circulation period of up to 1 year;
• 22 and 23 - for securities of constituent entities of the Russian Federation or municipal securities with a maturity of up to one year and, accordingly, variable or constant coupon income;
• 24 and 25 - for securities of constituent entities of the Russian Federation or municipal securities with a maturity of 1 to 5 years and, accordingly, variable or constant coupon income;
• 26 and 27 - for securities of constituent entities of the Russian Federation or municipal securities with a maturity of 5 to 30 years and, accordingly, constant or variable coupon income;
• 28 and 29 - for securities of constituent entities of the Russian Federation or municipal securities, the terms of issue of which require their redemption primarily in non-monetary funds, with a maturity of 1 to 5 years and from 5 to 30 years, respectively.

The fifth, sixth and seventh digits (x5x6x7) indicate the serial number of the issue of securities of this type; the eighth, ninth and tenth categories (х8х9х10) - for the issuer of securities, the eleventh category (x11) - reserve.

These loans are of two types: general coverage - to cover the local budget deficit; targeted - to finance investment socio-economic projects, housing construction, telephone communications, development of local industry.

In different regions of the Russian Federation, the following forms of loans exist:

• - bills (Novosibirsk, Chuvashia, etc.);
• – short-term debt obligations (BDO) by GKO type (St. Petersburg MCOs, Chelyabinsk OKOs, Perm ODOs, etc.); treasury certificates (Sakha-Yakutia - 50 g of gold 0.9999 fineness); short-term convertible debt obligations (placed at a discount, converted into shares at privatization auctions - Novosibirsk, Novokuznetsk, etc.); Eurobonds.

Municipal loans are gradually being consolidated, their repayment periods are increasing. They are provided with funds from the budget and off-budget funds, real estate. Banks, insurance companies, enterprises and organizations can act as guarantors. Most often, the guarantors are the issuers themselves.

Municipal bond yields are paid in cash, in kind, or in the form of sweepstakes and prizes. Cash income can be in the form of a fixed interest rate, a floating interest rate, a discount, a difference in the cost of selling and buying a bond. In-kind income is paid by housing, telephone installation, land, securities. Land plots, locally produced goods, apartments, additional bonds are raffled off as prizes. In addition to income, municipal bondholders receive benefits. These bonds can be used to pay taxes, deposit required reserves with the Bank of Russia, and use them as collateral for obtaining a loan. Lotteries are held among bondholders. Free rights for hunting, fishing, collecting wild plants are provided.

The terms of regional loans vary depending on their purpose. Loans are usually short-term - from 3 to 9 months. Targeted loans are taken for a period of 1 to 6 years.

New government securities. In connection with the restructuring of the internal debt by order of the Government of the Russian Federation of December 12, 1998 No. 1787-r "On innovation in government securities", new government securities appeared on the market:

• – federal loan bonds with fixed coupon income (OFZ-FD);
• – federal loan bonds with a constant coupon income (OFZ-PD).

The novation was carried out from December 15, 1998. The amount of new obligations was determined by discounting the nominal value of GKOs, OFZ-PK, OFZ-PD with maturities up to December 31, 1999, based on the income of 50% per annum in the period from August 19, 1998. before the maturity date. For OFZ-PK and OFZ-PD, the discounted amount included amounts of unpaid coupon income. For unannounced coupons, the rate was taken equal to 50%.

As a result of the innovation, the owners of GKO, OFZ-PK and OFZ-PD received the following securities:

• - OFZ-FD - at par, equal to 70% of the amount of new obligations;
• - OFZ-PD - at par, equal to 20% of the amount of new obligations;
• – cash in an amount equal to 10% of the amount of new liabilities.

If the maturity of GKO, OFZ-PK, OFZ-PD came before the moment of novation, then the amount of funds paid out increased depending on the grace period at the rate of 30% per annum until the official publication of the order of the Government of the Russian Federation of December 12, 1998 No. 1787- R. At the same time, 2/3 of the funds were issued in equal shares of GKOs with maturities not exceeding 3 and 6 months. and with a yield of 30% per annum. Owners of GKOs, OFZ-PKs and OFZ-PDs, who were subject to a standard for investing funds in government securities (except for credit institutions, professional participants in the securities markets, government bodies), were given the right to receive 30% of the amount of new obligations in cash with a corresponding reduction up to 50% of OFZ-PD share and retaining OFZ-PD share of 20%.

Individuals - residents of the Russian Federation were given the right to receive the full amount of repayment in cash.

Government savings bonds (GSS). These bonds are issued in accordance with Decree of the Government of the Russian Federation of November 6, 2001 No. 771 "General Conditions for the Issue and Circulation of Government Savings Operations" and Order of the Ministry of Finance of Russia of August 19, 2004 No. 68n "On Approval of the Conditions for the Issue and Circulation of Government Savings Bonds ". The issuer is the Ministry of Finance of Russia, investors are legal entities, residents: insurance companies, the Pension Fund of the Russian Federation, non-state pension funds, joint-stock investment funds, companies engaged in trust management of pension savings. Bonds short-term, medium-term and long-term, registered, are issued in documentary form. The issue is carried out by separate issues, the volumes of which are determined by the issuer. The bonds are not circulated on the secondary market, but are placed at auction and by closed subscription. The owner of the bonds at their redemption receives their face value, as well as interest. Repayment and coupon payments are made at the expense of the federal budget. This is a federal state security with a par value of 1000 rubles. The owner of a bond has the right to present it for exchange for federal government securities and for redemption.

The bond market is serviced by an agent, a depository and a trade organizer. An agent is a credit institution that has entered into an agreement with the issuer. The agent checks the rights of investors to own bonds, maintains their personal accounts, places bonds at auctions and by closed subscription, and exchanges bonds. Carries out their repayment and redemption, payment of interest income. The depositary opens and maintains DEPO accounts of the issuer and investors. The trade organizer conducts auctions.

Deposit and savings certificates of commercial banks. These securities are issued in accordance with the letter of the Bank of Russia dated February 10, 1992 No. 14-3-20 "Regulations on savings and deposit certificates of credit institutions". A bank certificate is a written certificate of the bank on the deposit of funds, certifying the right of the depositor or his successor to receive the amount of the deposit and interest on it after the expiration of the established period. The depositor of the bank who bought the certificate is called the beneficiary (beneficiary). The form of the certificate is paper. Certificates are nominal and bearer, deposit and savings. All must be urgent. Certificates of deposit are issued only to legal entities, residents, for a period of up to 1 year, can only be transferred to legal entities in non-cash form, these are registered securities. Savings certificates are issued only to individuals for up to 3 years, can only be transferred to individuals - citizens of the Russian Federation, in cash and non-cash form, these are bearer securities. Certificates are not subject to export outside the ruble zone, and cannot serve as a settlement and means of payment for goods and services. Certificates are not issued in currency.

Mandatory details of these certificates:

• – name "certificate of deposit" or "savings certificate";
• – the reason for issuing the certificate (contribution);
• – date of deposit;
• - the size of the deposit;
• – an unconditional obligation of the bank to return the amount deposited;
• – date of demand by the beneficiary of the deposit under the certificate;
• – interest rate for using the deposit;
• - the amount of interest due;
• – name of the issuing bank;
• – name of the beneficiary (if it is a personalized certificate);
• – signatures of two persons of the bank;
• - seal.

The absence of at least one attribute makes the certificate invalid. If the certificate is presented for payment ahead of schedule, the interest rate is reduced. If the certificate is expired, the bank undertakes to pay for it on demand. On the security of a deposit and savings certificate, you can get a loan. Bearer certificates are transferred by simple delivery, nominal certificates - by cession (general civil assignment of a claim). The assignor cedes his morals, the assignee acquires them. The cession is issued on the reverse side of the certificate in the form of a bilateral agreement with signatures and seals.

Bonds of the Bank of Russia (OBR). In accordance with the Federal Law of July 8, 1999 No. 139-Φ3 "On Making Amendments to the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" and the Federal Law "On the Securities Market"" to the Bank of Russia in order to implement monetary politicians are given the right to issue bonds on their own behalf. Decree of the Government of the Russian Federation No. 1142 dated October 12, 1999 approved the Regulations on the specifics of the issue and registration of bonds of the Bank of Russia. These bonds are placed and circulated only among credit institutions. The maximum amount of the total nominal value of bonds of the Bank of Russia is equal to the difference between the maximum possible amount of required reserves and the amount of required reserves determined on the basis of their current standard.

These bonds are short-term issuance securities that secure the right of their owner to receive funds in the amount equal to their face value within the period stipulated by them. The income from a bond is the difference between the par value and the purchase price of the bond. Bonds are issued in documentary form to bearer. Bonds are issued in separate issues. Each issue has a registration number. Servicing and redemption of bonds is carried out by the Bank of Russia.

These bonds began to be issued during the crisis due to the absence of trading in GKO-OFZ and the unresolved problem of exchanging GKO-OFZ for new securities.

It is a liquid, profitable and reliable instrument on the Russian securities market. By November 1998, 9 OBR issues were placed, including 4 issues at auctions, 5 issues at secondary auctions. The yield of OBR on the secondary market in September-October 1998 was about 70% per annum, and by mid-November it had dropped to 35%. The maturity of these securities did not exceed 30 days. In 2001, the issue of OBR was discontinued and resumed only in 2004.

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 internal 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 securities of the state internal loan of the Russian Federation and subjects of the Russian Federation

The market obligations of the domestic 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 are equated to 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, 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; the Tax Code of the Russian Federation; 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
other 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)

The general principles of the functioning of the Russian state 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; the number "2" - means a debt obligation;

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 budgetary expenses. 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 longer maturities (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
The range of instruments previously used by 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-
financing the budget deficit and managing bank liquidity
connected with the differences in the tasks facing the Ministry
finance and the 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 circulation period, 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
spending, but for the purpose of implementing 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 the Central Bank of the 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 of 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 of the market value of
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 concessional 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 Oneximbank depository 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 constituent entities 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 and municipal securities can be classified as a separate category of securities for a number of reasons. First, the issuer in this case is a public legal entity (a state, a subject of the Russian Federation or a municipality). Secondly, the legal basis for the issue of securities by these entities has its own specifics. In addition to the Civil Code of the Russian Federation, the Law “On the Securities Market”, the issue procedure is regulated by the norms of the Budget Code of the Russian Federation, as well as the Federal Law of July 29, 1998 N 136-FZ “On the Peculiarities of the Issue and Circulation of State and Municipal Securities”. government securities The Russian Federation recognizes securities issued on behalf of the Russian Federation.

Table 8 - Issuers of state and municipal securities

At various stages of market development in the Russian Federation, the following types of government securities were issued:

Privatization checks;

Bonds of the Russian domestic winning loan

Government short-term zero-coupon bonds (GKO);

Federal loan bonds;

Treasury bills;

Bonds of an internal currency loan;

State long-term obligations;

Golden Certificates.

Currently, state and municipal securities are issued mainly in the form of bonds. State and municipal securities are placed in issues. The decision on the issue of state or municipal securities may establish the division of the issue into tranches.

Tranche- part of the securities of this issue, placed within the volume of this issue on any date during the period of circulation of securities of this issue, which does not coincide with the date of the first placement.

State and municipal securities can be nominated both in rubles and in foreign currency. If the face value of a security is expressed in rubles, then such obligations form domestic debt. If the face value of a security is denominated in a foreign currency, then such obligations form external debt.

CASE STUDY

Despite the fact that government securities are considered the most reliable, there have been cases of default in world practice, i.e. refusal to fulfill the debt obligations assumed by the state. Russia also declared a default on government securities (GKO) in 1998.

State short-term bonds (GKOs) were issued in the form of registered discount bonds in non-documentary form (in the form of entries in accounting accounts). The Central Bank of the Russian Federation acted as the general agent for servicing GKO issues.

GKOs were issued for different periods - from several months to a year - in separate issues in accordance with the "Basic conditions for issuing state short-term zero-coupon bonds of the Russian Federation", approved by Decree of the Government of the Russian Federation of February 8, 1993 No. 107. The first issue of GKOs took place on May 18, 1993.

At the initial stage, the demand for GKOs was low due to high inflation and GKOs being closed to foreigners. Over time, the purchase of GKOs became available to foreign investors, which contributed to a sharp increase in demand for them. As of January 1, 1998, the total nominal value of GKOs in circulation was about 300 trillion. rub. By 1998, the GKO market had become the main source of financing the Russian budget deficit. In August 1998, a default was announced on GKOs, the yield on which, immediately before the crisis, reached 140% per annum. After the economic crisis of 1998, investments in GKOs depreciated three times, in addition, the state froze all payments on its treasury obligations. The announcement of default on GKOs caused the financial crisis in 1998.

In order to prevent the situation described in the example from repeating itself, the Budget Code, which entered into force in 2000, defines liability for debt obligations of the Russian Federation, constituent entities of the Russian Federation, and municipalities. P. 1, Art. 102 of the RF BC determines that the debt obligations of the Russian Federation, a constituent entity of the Russian Federation, a municipal formation are fully and without conditions secured by all property owned by the Russian Federation, a constituent entity of the Russian Federation, a municipal formation that constitutes the relevant treasury, and are executed at the expense of the corresponding budget. This means that in the event of a default being declared, obligations under state or municipal borrowings will be fulfilled at the expense of the relevant property.

Securities issued by local governments at the level of federal subjects or territorial administrations.

The main task of municipal securities (MSB) is to fill the local budget deficit and attract investments from outside for the implementation of non-commercial projects, the costs of which are not provided for by the budget or long-term promising projects with a long payback period.

The MCB should not be confused with government securities of a federal loan, the issuer of which is the Ministry of Finance of the Russian Federation. MCBs are not state-owned, which, of course, makes them less reliable, but, nevertheless, they are securities with a fairly low investment risk.

These financial instruments appeared on the Russian market in 1992, and since then their popularity among investors has only been growing.

Types and provision of MCB

There are the following types of obligations of local authorities:

• coupon (yield is defined as a percentage of the face value) and zero-coupon (yield is the difference between the face value and the purchase price) bonds;
• special and targeted municipal loans;
• interest-bearing and interest-free bonds.

• taxes received by the local budget;
• profit from a commercial investment project;
• guarantees of the Government of the Russian Federation;
• any type of property that is on the balance sheet of a subject of the federation.

The need for collateral forces the state to control the issuance of MCB by setting limits on the allowable amount of credit funds, which should not exceed:

• 30% of the budget revenues of the constituent entity of the Russian Federation;
• 15% of local budget revenues.

Advantages and disadvantages of the MCB as an investment object

• widespread use and further prospects for growth in emission volumes;
• reliability and availability of security;
• Possibility of non-monetary repayment. Securities of other issuers, land plots and residential and non-residential real estate are accepted as payment.

• the impossibility of covering the issue of money, in which MCB lose to federal securities;
• a high degree of risk in case of changes in legislation and, in principle, the absence of legally fixed responsibility of local authorities for issued securities.