| Financial market, as one part of national financial system, plays an important role in the course of national economic development. A developed and effective financial market could not only raise the money needed for national construction, but also guarantee the effective distribution of the capital among economic departments. So, most countries' governments in the world attach great importance to the cultivation and development of the financial market. Russia's financial market developed only after Russian government carried out the radical economic reform of "shock therapy". Initiated by the reform of "shock therapy", efforts of making economy free, of making state-owned enterprises privately owned, and of making financial and currency policy stabilized, created conditions for the existence of Russia's financial market directly. Russia's currency market, capital market and foreign exchange market developed gradually along with the process of the reform. The method of loaning between banks posses a major position in Russia's currency market which was very active in the early part of 1990's. One reason for the capital borrowing-and-lending among banks is due to the adjustment of the needs for capital money. But a more important reason is the high profit in the market of short-period national debt, which makes banks put the money into the currency market for advantage. At that time, the laws and regulations set forthe method of loaning between banks were not sound and consummate. In 1995, there appeared a payment crisis, which caused a huge upheaval to the national economy. The financial crisis of 1998 inflicted heavy losses to the method of loaning between banks. However, with the reform and reshuffle of the Russian banks, the market becomes active again. The market of short-termed bill in Russia's currency market develops along with the improvement of the enterprises' operational conditions in recent years. The problem Russia's currency market is now faced with is bad debts. In 2001, 36.9 percent of enterprise loan debt has exceeded the time limit. The debt burden has produced serious influences towards the recovery and development of Russian economy. Russia's capital market divides into securities market of nation and securities market of companies. The short-termed national debt and the federal debt bond are the major kinds of the national debt of Russia Federation. The initial purpose of issuing the short-termed national debt and federal debt bond is to remedy the nation's financial deficit. At that time in Russia, because of the adjustment of the economic system, domestic economy glided rapidly, inflation was aggravated, and governmental financial deficit was huge. In order to go through the difficulties, the Russian government had to issue the short-termed national debt in large quantities with high breath, which made the market of short-termed national debt on a large scale. The central bank, as the currency authority, did not suit the financial policy of government. On the contrary, it was engagedin the speculation of national debt for seeking huge ill-gotten gains. To attract more investors, the Russian government relaxed restrictions for foreign capital entering the market of national continuously. But most foreign capital was for the sake of high earning rate, which aggravated the upheaval of Russia's national debt market, hence the debt crisis of the government. Failing to repay the debt, the Russian government had to close the market of national debt in 1998. In June 1999, after reshuffling the debt, the Russian government resumed the trade of federal bond market and intervened vigorously for the administration of the market. The earning rate and the scale of federal bond market after recovery present the downtrend. It benefited mainly from the improvement of national overall economic atmosphere. Russia's municipal bond markets also possess an important position in Russia's domestic securities market. The municipal bond markets are more attractive because of... |
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