| Abstract [eng] |
Legal Instruments of Borrowing on Behalf of the State This Master's thesis deals with the legal instruments of borrowing on behalf of the state and its main purpose is to examine the application of the instruments of borrowing on behalf of the state. The work consists of 2 parts. The first part of the work gives a brief introduction to the topic under discussion, which deals with the concept and principles of borrowing on behalf of the state. The second part of the thesis was devoted to analyze the main borrowing instruments on behalf of the state and analyze them in the Lithuanian context. The paper distinguished the main borrowing instruments - Government securities, Government loan agreements, other borrowing instruments and Eurobonds. The paper examined the main borrowing instruments separately and revealed that government securities are divided into three types: Treasury bills, government bonds, government savings notes. The paper also distinguished between the options for the issue of securities - auction, combined mode, bilateral negotiation, retail mode. Another borrowing instrument highlighted in the paper is Government Loan Agreements. The main purpose of this instrument is to enter into loan agreements with foreign financial institutions for a specific purpose. Obtaining a loan from financial institutions is an integral part of creditworthiness rating. The states with the highest credit rating are considered reliable and have access to a loan from financial institutions. Among the other government borrowing instruments at work were the following: government European commercial paper, government guarantees, government deposit liabilities agreements, financial leasing contracts. Unfortunately, there is not much information available on government commercial European paper. There is only a release procedure in Lithuania and there is no information on how widely this instrument is used. Concerning State guarantees, Lithuanian law has specifically stipulated when a state guarantee can be granted and by whom. At present, the Republic of Lithuania has provided guarantees for the following financial institutions: loans for investment projects granted by the Nordic Investment Bank (SIB); on loans for environmental investment projects from the Nordic Investment Bank (SIB); on loans granted by the European Investment Bank (EIB) from its own resources. The latest instrument for sovereign borrowing is government deposit agreements. This instrument has only been approved by the Government and has not yet been used. As for finance leases, they are widely used to save the state money and provide funding for a specific purpose. The last public borrowing instrument highlighted in the paper is Eurobonds. This instrument is becoming more and more important at the moment of borrowing by the parties. These bonds are distributed in foreign markets denominated in foreign currency. Eurobonds denominated in euro and US dollars are currently available on the secondary market. In Lithuania, this borrowing instrument is the second most important after Government securities. |
