Storchak: the Ministry of Finance does not preclude placement of Eurobonds for more than $3 billion in 2016

LIMA, 9 October. The Ministry of Finance of the Russian Federation does not preclude the placement of Eurobonds worth more than $3 billion in 2016 under favorable market conditions. This was reported to journalists the Deputy Minister of Finance Sergey Storchak.

“The budget is quite flexible. While we’re talking about three billion. The market will be good – we probably will be able to change our plans. It comes to external borrowing, to keep the window of opportunity,” he explained.

Earlier, the Russian government approved the draft budget for next year, which envisages attraction of borrowed funds by $3 billion and 500 billion rubles. In last year’s budget target for borrowing were set at $7 billion and 1 trillion rubles, respectively.

Storchak noted that the instruments and markets may vary. “We don’t focus on what markets will be made of borrowing, it is still premature. The equivalent of three billion pledged, and the tools may be different, the markets may be different,” he added.

Regarding domestic borrowing in the currency of the Deputy Minister of Finance said that this tool can be used for large companies, but large tranches are planned.

“What tools? Eurobonds and all. This is clearly exotic. Well, let’s give the opportunity to those large companies that have accumulated sizable foreign exchange reserves, which it is not clear where placed, will give them the opportunity to be placed in liquid instruments. From the point of view of maintaining a budget is not serious,” he said.

“The role of the digital economy is becoming more tangible”

The digital economy is in the spotlight of the world Bank report at the annual meeting in Lima, said Storchak.

“Quite unexpectedly then, the report of the development of EOS at this time much attention is paid to issues of the digital economy. This is the Internet, mobile communication, purchase and sale through online stores. The role of the digital economy is becoming more tangible,” said he.

According to Deputy Minister of Finance, the WB report was prepared “in the spirit of what the Internet and everything connected with it, became a powerful lever of influence on the public behavior of those in power”.

“The other side of this coin is that through the Internet we are mobilizing anti-government forces including the terrorists,” he added.

The meeting of the Board of Directors of the Bank BRICS will be held in November

The second meeting of the Board of Directors of the Bank BRICS will be held in late November.

“The second meeting of the Board of Directors will be held 20 days of November,” he said, noting that the agenda is likely to assume the solution in the preparation of internal policies of the Bank.

“The task of the President and Vice presidents and is to internal policies to prescribe, and a lot of them,” said Storchak.

The Deputy Minister of Finance also noted that while there are no criteria of selection of projects of the Bank. “It is clear that it must be a self-sustaining projects that meet the goals and mission of the Bank,” he said.

Storchak has reminded that the first Bank project is expected to be funded until April 1, 2016.

He also assured that Russia “with the first tranche of payment nor in the AIIB or the New development Bank will have no problems”.