Market of sub-federal bonds: specifics and problems of formation

The aim of the study is to analyze the situation in the field of state bonds borrowings and debt load in the Russian Federation subjects. The author reveals advantages of issuing regional debt securities as an effective tool to attract additional financial resources. It is noted that the issue of government bonds may be exercised only for the purpose of financing the budget deficit and repayment of debt obligations. The article discusses the practice that Russia’s regions employ to attract financial resources by issuing debt securities; the conclusion is made about the specifics of the state of the market of sub-federal bonds of the Russian Federation, and some problems in this market are highlighted. Research into the development of regional bond issues is relevant, because economic development of the majority of constituent entities of the Russian Federation in recent years is carried out in conditions of chronic budget deficit and growth of borrowed funds.