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RUSSIA'S NATIONAL DEBT: PROS AND CONS

N. Klochkova, L. Parfenova, I. Kurochkina

Abstract

The country's public debt – a multifaceted characteristic of the economic situation of the country. The statistics of public debt of the Russian Federation for 10 years was reviewed in the article. The study identified several reasons to doubt the validity of the magnitude of the debt burden for the Russian economy. It was concluded that in current Russian conditions a peak of decision-making on the debt had been reached. Over the past four years the debt has increased 2.3 times, while the state guarantees increased 3.6 times. This is growth of debt burden on the economy. The reason is that commercial banks carry out credit financing of the largest enterprises only under state guarantees. Authors proved that in such environment the price of hydrocarbons and non-focus on innovation path of the development, the lack of in-growth of real sector of economy and increase in government debt would cause shifting again the resulting debt on future generations. The Authors analyzed information from various sources (medium-term financial plans of the country for recent years, strategic planning documents, data on placement and repayment of external and domestic debt, the statements of the representatives of power structures, information and analytical agencies). Such instruments as economic and mathematical methods, elements of statistics, generalization and method of expert estimations were used in the research work. In conclusion: the investment climate was, is and will be a quite sensitive value. The increase in debt and service obligations can impact on the degree of the investor’s risk and react on rising interest payments.

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DOI resolver: doi.org/10.5593/SGEMSOCIAL2017/HB11/S03.092

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