Tuesday, July 5, 2016

Bloomberg learned about the plans of the Ministry of Finance to borrow up to $ 3 billion over three years – RBC

Photo: Yekaterina Kuzmina / RBC

The Ministry of Finance It proposes to maintain in the budget for the years 2017-2019 able to borrow on foreign markets to $ 3 billion annually and increase domestic loans

The Ministry of Finance proposes to maintain in the budget for the years 2017-2019 able to borrow on foreign markets to $ 3 billion a year, said July 5 Bloomberg referring to the Office proposals submitted for consideration by the Russian government. Thus, the agency proposes to maintain the volume of external borrowing at the same level, which is registered in the budget for 2016. Representative Siluanov refused RBC comments.

Earlier in June, Anton Siluanov told reporters that the Ministry of Finance does not plan to lay in the budget for 2017 the possibility of external borrowing, but, if necessary, will be able to enter foreign markets.

«I think it will not even plan special access to foreign markets. The following year put plans to enter the domestic markets. But if you need to access external markets, it is possible to be done within the budget adjustments, as usual, in the fall or in the spring, “-. Siluanov said (quoted by” RIA Novosti »)

In this year of the quota $ 3 billion is only the Ministry of Finance took $ 1.75 billion, ending May 24, 2016 placement of ten-year Eurobonds at 4.75% per annum. As the press-service agency, investor demand for bonds exceeded supply by several times and amounted to about $ 7 billion. More than 70% of shares bought by foreign investors. Accommodation Russian Eurobonds on $ 1.75 billion deal was the first sovereign in the international capital market in 2013. Accommodation was accompanied by difficulties due to sanctions. In April, Euroclear and Clearstream refused to serve the new issue of Russian eurobonds due to fears violate provisions of the US government and the EU. Investors will not be able to carry out payments through Euroclear or Clearstream, as long as they do not take appropriate action, the Ministry of Finance indicated in the prospectus. As a result of placing Eurobonds passed through the National Settlement Depository

«On Euroclear was put unprecedented pressure” -. Said in May, Finance Minister Anton Siluanov, adding that Russia continues to negotiate with the clearing systems of the early settlements <. / p>

After the placement of Eurobonds for $ 1.75 billion, the minister said that the Ministry of Finance this year will not see the need for yet another outlet to the external debt market this year. The remaining amount of loans for $ 1.25 billion, which is provided external borrowing program for 2016, may be replaced by internal ruble attraction, said the minister.

You can finance the budget deficit through domestic borrowing, as their services will be held in rubles, which pays the budget, he explained Siluanov. At the St. Petersburg International Economic Forum, he said that Russia is not interested in attracting foreign borrowing to finance the deficit

«We really currency borrowing does not need, we need rubles”, -. He said, answering the question of the moderator of why not the Ministry of Finance placed Eurobonds for $ 3 billion, as planned, but only $ 1.75 billion “External borrowing -. it is the influx of currency into the country. If we attract a significant amount of currency, then this will affect the rate of the ruble on its further strengthening, “- said Siluanov

And, as the head of the Ministry of Finance, the amount of domestic loans in the next three years will inevitably grow.. In accordance with the planning for the next three years, which leads Reuters referring to the Ministry of Finance of materials, net domestic borrowing will rise to 1.29 trillion rubles. next year to 300 billion rubles. in 2016. In the years 2018-2019 they will increase to 1.47 and 1.44 trillion rubles. . Respectively

«Even reducing the budget deficit, we will have to increase the amount of presence in the market, because you have to take care reserve fund, not to spend the reserves,” – he said,

Reuters reports that. to cover the federal budget deficit in 2017 will need to spend all accumulated in the Reserve fund, and about 783 billion rubles. from the National Welfare Fund. In 2018 and 2019 from the National Welfare Fund to cover the deficit are invited to spend another 83 billion and 87 billion rubles. respectively.

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