The policy of government and external debt management
Ph.D. in Economics,
Institute of Economics CS of the MES RK
“We should keep under the permanent control the level of country national debt. It is necessary to lower the budgetary deficit against GDP from 2,1% in 2013 to 1,5% in 2015. It needs to control rigidly the level of a quasi -public economy sector debt”.
The necessity of rational long-term policy of state in the area of a foreign national debt management becomes apparent. The carrying out of such borrowing policy would allow in future make payments on debt without the essential loadings on available resources. Such policy proposes the implementation of the following measures:
1. Designation of the new borrowings limits. The high-priority point for today is a lowering of debts amount by way of partial refusal from the new borrowings, as well as the determination of priority directions of a debt financing at the expense of attracted sources.
2. The special emphasis should be put on the primary conditions of borrowings, par value, instruments of currency, allocation scheme, procedure and frequency of income payment, etc. In this case the example of the Eurobonds, the restructuring on which is extremely difficult, is demonstrative.
3. The borrowings structure should be optimal upon the terms and portfolio itself. The borrowings optimization is to elude the peak of payments in the future. But if in practice of portfolio management the task is to increase its yield, then at the debt portfolio management it is the drive to costs reduction. In this regard it is necessary to lengthen and make cheaper in service the credit portfolio, what requires the optimal choice of debt instruments. The annual program of new borrowings, represented by the government in the course of budgetary process, should include the estimated payment schedule on the debt repayment and service as a composite element.
4. The refuse from the practice of tied credits attraction.
5. For the purposes of suppositions creation for the effective management of national debt, which meets the world’s requirements in this area, it is necessary to take measures on the exchange of non market debt categories to the market financial instruments.