30 июля 2016г.
Key words: securities market, government bonds, RGBI, problems, development prospects.
Abstract: This article describes the main problems of Russian government securities market problems and development prospects, ways of its efficiency improving.
Securities market is defined as special economic relationships between market participants concerning securities issue and circulation; it is a meeting place of sellers and buyers; it is the mechanism promoting primary and secondary securities offering. Government bonds market is an inseparable and really important part of securities market. The problem of budget deficit has a big value for any state in any time. And government securities issue is the most efficient way to solve this problem.
Government securities are issued in order to cover budget deficit, cash gaps, to borrow necessary funds to invest huge projects and repayment of debt on earlier issued securities. Moreover, government securities issue allows to regulate money supply, inflation, influence on exchange rate, to redistribute the capital between segments of the financial market.
In Russia, securities may be issued on behalf of Russian Federation, states of Russian Federation, on behalf of municipality. Ministry of Finance is the main issuer of government securities.
In 2016, government securities internal debt of Russian Federation was 5 676,431 bl. rub.( as of 01.04.16), and there are 7 types of Federal Loan Obligations in circulation : with variable coupon (OFZ-PK) in the amount of 1 467, 577 bl. rub., with the constant coupon income (OFZ-PD) in the amount of 2732,442 bl. rub., with the indexed face value (OFZ-IN) in the amount of 155,288 bl. rub., with depreciation of a debt (OFZ-AD) in the amount of 788,574 bl. rub., the government savings bonds with a fixed interest rate of a coupon yield (GSO- PPS) in the amount of 310,55bl. rub., the government savings bonds with a fixed interest rate of a coupon yield (GSO-FPS) in the amount of 132 bl. rub., and bonds of domestic bonded loans of the Russian Federation (OVOZ) in the amount of 90bl. rub.
Federal Loan Obligations with the constant coupon income have the largest weight in structure of government securities internal debt of Russian Federation (48,14%). Next are Federal Loan Obligations with variable coupon ( 25,85%), Federal Loan Obligations with depreciation of a debt ( 13,89%), and bonds of domestic bonded loans of the Russian Federation have lowest weight ( 1,58%)[2]. The popularity of Federal Loan Obligations with the constant coupon income may be explained by its ability to meet the main investors requirement at purchase of government securities- data of risk to a minimum: OFZ-PD represent registered coupon bonds; the rate of a coupon yield for which is a constant. Its face value is 1000 rub. and coupon rate is 8,15%.
Based on these information, we can’t deny the huge vatiety of market instuments. But, despite this fact, all of them are bonds, which differs only with cupon income type and way of it charging.
Every year, the volume of government securities internal debt of Russian Federation is rise. On the one hand, its shows increase in government loans requirement, but on the other hand, it also shows that government use not issue federal budjet financing methods and effician using of monetary policy tools.
Mosow Exchange counts a governmet bonds index RGBI on a constant basis. This index reflects the price dynamics of government bonds market and is an indicative indicator of profitability and appeal of the Russian government securities. As of 01.06.2016, their gross yield was 130,03. There is no doupt that economic and political conditions in our country influence on this index. In 2009 and 2015 years, when there was a crisis in russia, we can see sharp falling of this indicator. But, in the last year RGBI showed long-term positive trend that undoubtedly demonstrates increase in investment appeal of the market, and its functioning efficiency inreasing.
Today, Russian government securities market continues to develop, being guided by successful experience of foreign countries and adopting it. Comparing bases of regulation and functioning of the Russian market with the markets of such countries as the USA, Great Britain, Switzerland, it is possible to notice their considerable similarity: the legislation, an issue order, types of the instruments in circulation. In 2016 the new type of government bonds is issued in sirculation - Federal Loan Obligations with the indexed face value. This type of bonds has perfectly proved in such countries as the USA and Great Britain. Fundamental difference of such bonds is their security from inflation which is reached by recalculation of a face value taking into account a consumer price index on goods and services in Russia.
Analyzing the Russian market of government securities, it is possible to allocate following groups of devlopment interference problems :
1. The problems connected with legislative regulation
2. Infrastructure problems,
3. Narrow range of tools of the market of government securities,
4. Problems of people trust to the government securities market and to financial market in general.
Problems of legislative regulation include a lack of a reality of regulatory legal acts to, slow responses of legislature to changes of a conjuncture of the market, and also complexity of the taxation in the security market.
Effective use of the international practice, implementation of the international standards of regulation of the market, development of detailed explanations to laws, detailed plans of market development can become the solution of these problems.
If we are talking about infrastructure problems, it should be noted poorly developed system of primary and secondary iussue of government securities, and also poorly developed system of its informing, a low share of private investors, speculative nature of investor’s behavior on the market. As the solution of these problems, creation of the infrastructure systems oriented to private investors, development of systems of informing on release of government securities, toughening of requirements to issuers of securities, and also development of well- defined rules and provisions on accomplishment by issuers of the liabilities can be used.
Analyzing types of the bonds presented on the market, it should be noted a lack of the instruments oriented to private investors. The largest weight has huge instutsionalny investors whose main goal is risk dversification by means of government bonds. The solution of this problem is issuing essentially new instruments into the circulation which are interesting to private investors, and also increase of bond yield.
One more important problem is financial illiteracy of people concerning the financial markets, and also their complete mistrust to it. Reasons are simple and clear. Firstly, Russian financial market exists a little more than 20 years and still developing. While the financial market developed and tried to obtain people’s trust in the West in the 20th century, in Russia it not even existed. Secondly, in the period of disintegration of the Soviet Union there was a huge number of swindlers who have so undermined people’s trust to the financial market that even today most of people, approximately of 35 years, consider them unreliable, only as method of money enticing, financial pyramids. The essence of this problem lies in insufficient people’s knowledge of market functioning, and also in an unstable economic situation in our country and uncertainty of citizens that through a certain amount of time the state will be capable to fulfill the liabilities. This problem can be solve only in case of common efforts of the state and participants of the financial market, first of all the exchanges. People shall see and understand that the state controls activities of market institutes, and these institutes shall work openly, provide all completeness of information, and not only in the form of huge documents, but also in the form of explanations to it, articles so anyone without specialized education may understand organization functioning.
Prospects of market development of government securities in Russia are huge. Our state is interested in it and tries to create optimum conditions for its functioning. And let now there is a huge number of problems, however, all of them are surmountable and in a decade we will be able to see already absolutely another Russian government securities market.
List of references
1. А.С. Селищев Рынок ценных бумаг: учебник для бакалавров // – М. : Издательство Юрайт, 2012.- 431 с. – Серия: Бакалавр стр 10-11
2. Департамент государственного долга и государственных финансовых активов Министерства финансов РФ
3. Покровская Н.Н., Слободской А.Л. Социокультурная идентичность и экономическое поведение в современном российском обществе // Труды Санкт-Петербургского государственного университета культуры и искусств. – 2015. – Т. 206. – С. 158-169.
4. http://www.rusbonds.ru/ank_obl.asp?tool=75562, дата обращения 25.05.2016
