| Gross external debt is the mount, at any given time, of disbursed and outstanding contractual liabilities of residents of a country to non-residents to repay principal, with or without interest or to pay interest, with or without principal. The practice of world economy shows that, foreign borrowing ,which will cover internal capital insufficiency and absorb the technological and managerial experience of the developed countries ,is one of the most important requirements for the developing countries to develop their economy. In world history, there are many examples of industrialization accomplishment or economic taking off through foreign borrowing. But, if one country borrows too much foreign loans and miscarriages it or doesn't use it properly, then debt crisis will occur and even overall economic crisis may emerge to endanger national economic safety. Furthermore, foreign loans, an important form of capital export, has always been an important means for the creditor nation to interfere the internal affairs, control the economic lifelines and even seize national sovereignty of the debtor nation. We can prove this by researching the global debt crisis in the 1980's, Asian financial crisis in the 1990's and Russian operation of foreign loans since its economic transition.Now, our country has been making great efforts to establish the socialist market economy, and it has become an emergency for the research and practice of our theory on foreign loans that an efficient and healthy way must be found out to organically integrate foreign loans borrowing, using and paying back, and to promote economic development through foreign borrowing. Obviously, it will positively promote the healthy development of our foreign loans borrowing if we reinforce the research of foreign loans operation in other countries, and absorb the experience of major debtor nations in the research and practices of theory on foreignloans. Now, Russia and China are both in a period of economic transition. The two countries are common in the preliminary conditions for reform and this similarity also reflect in their practices of foreign loans. A thoroughly study of Russian foreign loans operation is sure to be a salutary lesson for us to ensure the healthy development of our foreign loans cause.Large amount of foreign loans emerged under the rule of the USSR, during which the Soviet Union had been carrying out the reform of its economic system, deteriorated during the process of economic transition, of which the 'shock therapy' was the heart, intensified in the peak-hour of debt paying, and finally became the 'crime culprit' of the financial crisis in Russia in 1998. By the year 1999, total Russian foreign loans amounted to as high as 166.2 billion USD, and each index that measures the risk of foreign loans exceeded the generally accepted international alert level. The reason is that, on one hand, after independence, Russia inherited the total amount of the foreign loans from the former the Soviet Union that is as large as 103.3 billion USD. On the other hand, the Russian economy couldn't avoid the long lasting downturn after the independence. In such circumstances as that financial crisis frequently occurred and the government financial budget had deficit every year, the Russian government had to borrow new foreign loans to face this negative trend. Furthermore, lack of internal deposit, insufficient foreign investment, and outflow of large amount of internal capital all contributed to the insufficiency of the Russian investment, which became the deep economic reason why the Russian government had borrowed so much foreign loans. Because of poor internal entity economy and large amount of debt, Russia could only meet the most urgent needs through new foreign borrowing to pay back the old ones and reorganizing the debt structure. This could not completely solve the debt problem and on the contrary, led to the enlargement of the foreign loans scale, and finally evolved into the blasting fuse of the financial crisis in 1998.There are... |
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