Government loans are represented by a structure of interrelated elements and types. So, depending on the status of borrowers, the following types of loans can be distinguished : centralized and decentralized.
The first type is represented by government securities issued by the government through the Ministry of
Finance. State loans of the second type are based on the issuance of securities by local authorities and are the main structural element in the financial system of regional self-government. With the help of these funds, it becomes possible for local authorities to take measures to develop a specific region. That is why the decentralized
state loan of 2013 has all the prerequisites for using it in the form of the main financial instrument with which the development of the national economy can be carried out.
It is the responsibility of the local government bond issuer to announce all the necessary financial and economic information. The use of this information enables potential investors to decide on the acquisition of such securities. The value of state credit is explained by the effectiveness of its use. In this case, the main subjective factor is considered to be the level of qualification of the personnel responsible for organizing the placement of these bonds.
Depending on the object of accommodation, such state loans are distinguished: internal and external loans. The first type of borrowed funds include those placed on the territory of the state in national currency. The definition of external loans involves placing them in foreign currency abroad. It should be noted that non-residents also have the opportunity to purchase domestic government loans.
The state has the right to issue loans at credit institutions of international level, as well as foreign banks.
Depending on the maturity of debt, the government can provide short-term, medium-term and long-term loans. So, a short-term loan assumes its execution for a period of up to one year, medium-term - up to five years, and long-term - from five years.
There is another classification of government loans based on the types of their yield:
- interest, suggesting that their owners receive income in the form of certain dividends;
- discount - the sale of securities of national importance is carried out at prices below their nominal value ;
- winning - the sale of these securities is carried out without fixing interest, and their holders will receive income only when a specific bond number is included in the repayment run, which implies a win.
A special place in the system of lending and financing is allocated to state lotteries (holding a draw of money or property using tickets purchased for a certain fee).