State loan - all sorts of relationships under the contract. First of all, these are contracts, when the state acts as a borrower, attracting money from creditors. They are also agreements under which the state lends to various borrowers, providing resources on the basis of repayment. These are loans from the budget, loans for taxes, the allocation of funds to other countries, the provision of investments to legal entities, large international concerns.
Essence of credit
First, consider the concept of credit. This is the relationship of the lender and the borrower, developing in relation to the issuance of free funds on the terms of repayment, payment, urgency.
The subjects of relations:
- the borrower;
- creditor.
Their role is played by individuals with legal capacity, commercial organizations that have the right and ability to bear responsibility for their transactions and actions.
Loan functions
The concept of credit implies the fulfillment of two main functions:
- Redistributive. It helps to transfer temporarily available funds from one entity to another for temporary use on the above conditions. These funds can be both in commodity and in cash.
- Due to credit operations replace cash. This property helps to reduce distribution costs, since it creates means of payment on its basis. This function appeared due to the specifics of money circulation in a commercial company, where non-cash payment methods predominate.
Budget loans: the meaning
Budget legislation indicates: this is the allocation of funds from one budget and its allocation to another within the budget system of the Russian Federation. The funds may go to a commercial organization, another country, to a regional or municipal institution or budget.
State loan It is issued by execution and signing of an agreement, which is concluded taking into account the civil legislation of the Russian Federation, taking into account the features prescribed in the budget legislation of the Russian Federation and other regulatory documents. That is, the loan in question is received subjects of the Federation, commercial structures, municipal and regional institutions and entities.
Forms of a budget loan:
- loans to commercial entities that are not state, unitary organizations;
- loans provided to municipal government agencies; both interest-free and interest-bearing loans can be provided here.
Under what conditions are funds allocated?
Consider below the conditions for providing a budget loan.
a commercial organization, municipal institution have the opportunity to receive appropriations from the budget if they do not have overdue payments on debts to various budgets. In addition, the commercial organization must pay off all mandatory payments that it pays to the budget system, excluding the moments of debt restructuring.
Foreign companies will receive budget loans only under the conditions of targeted foreign currency loans.
General conditions for issuing:
- retribution;
- recoverability.
A loan is provided using the following principles:
- These types of loans are targeted, since during the formation of the budget goals that require the allocation of funds from the budget are prescribed and approved. The conditions for issuing, the procedure, and the time of repayment are also established. Conditions are also formed under which the borrower can obtain a loan.
- The borrower must repay the loan and pay all accrued interest, terms and rules of these payments are fixed in the contract.
- A loan is issued only upon confirmation by those asking for their solvency. Except in those cases when budget loans are issued to state entities of the Russian Federation.
- The borrower confirms its solvency in several ways: it provides bank guarantee finds guarantors, pledges all his property. Moreover, all guarantees must be highly liquid.
Full check of the borrower
Budget loans to legal entities are issued only after a full check of their reporting, as well as, if necessary, the guarantor and the one who acts as a guarantor.
When a loan is issued, a commercial company still undergoes occasional checks as part of the target spending of the loan. Audit government agencies that have all the relevant powers. Guarantors and guarantors are also subject to verification.
If the check reveals that the borrower or those who act as guarantors have significantly worsened their financial situation, or if there is a lack of existing collateral, the borrower will be required to provide additional confirmation of his solvency. In the absence of such or in case of inappropriate spending of funds, the loan will need to be repaid in advance.
How are loans granted to legal entities?
Budget loans are issued after registration of the contract. Terms of Service:
- payment;
- retribution;
- security;
- recoverability.
The main condition is the absence of any kind of debt to the budget.
The period for which you can get a loan is five years. This is the maximum period.
Funds are allocated for:
- development, acquisition of innovative technologies;
- reconstruction, modernization, increase in production;
- organization of a new enterprise of high social and economic importance for the municipality or the country as a whole.
How to get:
- fill out an application in the established way with an indication of how loan repayment will be ensured;
- provide copies of constituent and financial documents for the last year;
- indicate the purpose of the loan.
To obtain a loan, it is also necessary to provide guarantees of loan repayment: banking, state. It is also possible to provide collateral covering a 100% budget loan.
Loan fee
For the use of public resources you have to pay. This also applies to budget loans. The amount of the fee is at least ¼ of the refinancing rate established at the time of signing the loan contract. Each municipal entity independently determines the amount of the fee.
Accounting for budget loans is carried out in the budget of the entity that issued the loan, or in the federal budget, in their revenue.
Loan to budgetary institutions
They can receive funds for the following purposes:
- Cover cash gaps that temporarily arise in the process of implementing municipal or regional budgets. The term for issuing funds is within one budget year.
- To cover the budget deficit arising from the repayment of obligations on loans already issued from credit institutions. The deadline is no more than three years.
Temporary cash gap - this is a temporary lack of finance in the account of the subject, which does not allow to fulfill its obligations for expenses. As a rule, it is forecasted within the budget for one fiscal year.
Budget credit is issued to the constituent entities of the Federation, in contrast to commercial structures, without obligatory confirmation of obligations to repay it. But also issued when the prerequisites are met:
- recoverability;
- retribution.
Terms of payment for the fact that the institution used the money of the budget, and its size are established by the regional (in the case of a loan to municipal authorities) or the federal government (when allocating funds to the region).
Repayment of the loan and interest is carried out in the terms that are set in the schedule of payments upon signing the contract. Funds are transferred to the budget account from which the loan was issued.
If the loan has not been repaid within the time period stipulated by the agreement, the balance thereon, as well as the amount of accrued interest and penalties, are paid off taking into account the requirements of the Budget Code and the debt collection procedure of the entity that issued the loan.
What is the result?
The law determines that the type of loans in question is regulated by civil law. Money is transferred from account to account, and the nature of their use is prescribed in the contract concluded with this.
Loans are issued at the expense of funds held in the accounts of entities. That is, they should be laid in the formation and approval of the budget, otherwise there will be nothing to give out.
