Content №3 от 2003
Loans as a domestic debt of constituent units of the Russian Federation
A widespread practice when constituent units of the Russian Federation make loans has a great impact on the regional budget and concerns interests of all economic entities. At present there are objective conditions to diversify loans through recommencing a practice of the sub-federal bonds issue because institutional and private investors create a demand. The development of the sub-federal bonds market lowers the regional needs in financial resources, reduces a price of domestic debt, and increases the forecasting quality of financial plans. However, this long-lasting trend may cause a critical financial burden both on regional budgets and the regional financial system which is a main lender for the regional economy.
