Prospects of internal state loans development in the Republic of Belarus

The article analyzes the state debt dynamics of the Republic of Belarus in absolute and relative values and shows the tendency of its growth at the present stage. The composition and structure of the domestic public debt of the Republic of Belarus by types of government securities issued and maturity dates have been analyzed. The conclusion is made about the dominance of longterm government bonds with interest income denominated in foreign currency in the structure of the internal public debt of the Republic of Belarus. Attention is focused on the need to manage public debt for two reasons: firstly, to achieve the efficiency of public finances and secondly, to ensure the financial market development through increased investment activities. The authors emphasized the necessity of government securities portfolio diversification and suggested using the experience of the Russian Federation in the issue of medium-term government bonds as a promising form of domestic government loans in the Republic of Belarus. It is justified that the purchase of medium-term bonds is more profitable for investors than the purchase of long-term bonds based on the duration calculation. Is also established the attractiveness of investing money into medium-term bonds compared with bank deposits.