Medvedev: the level of public debt will be maintained at a safe level

Medvedev: the level of public debt will be maintained at a safe level

MOSCOW, December 24. The level of internal borrowing will be in 2016 and 1 trillion rubles, foreign – to $3 billion this was announced by Prime Minister Dmitry Medvedev at a government meeting.

“For 2016 for securities, nominal value expressed in foreign currency, the amount of the issue is limited to the equivalent of three billion dollars for ruble limit should be about one trillion rubles,” – said the Prime Minister.

Medvedev said that the Federal budget for 2016 is adopted with a deficit, and to balance it and to ensure that all expenditure commitments, it is planned to attract funds from domestic and foreign markets.

“We will do so carefully, keeping the level of government debt at the economically safe level,” Medvedev promised.

The volume of borrowing

The government approved the limit of borrowing by 2016. “Well, let’s affirm,” said the Prime Minister at the Cabinet meeting.

During the meeting, Finance Minister Anton Siluanov said that the net borrowing of the budget in 2016 will be 300 billion rubles to 80 billion rubles this year.

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“Net borrowing next year will be 300 billion rubles. We need to attract in the next year 1 trillion 2 billion (1,002), and to repay 702 billion. This year the net borrowing amounts to 80 billion rubles,” – said the Minister.

In addition, according to Siluanov, the following year decided on the exchange of OFZs worth up to 200 billion rubles by agreement with their owners, including the CBR, on the other OFZ issues. “$200 billion at the price of 100% of the nominal value,” he added.

Siluanov also said that the Finance Ministry intends to use OFZ-IN in 2016, and the bonds to the public.

“Next year, we will also use the tools that worked well in the current year. We are talking about the bonds with fixed income, about the bonds that are tied to inflation, as well as with floating coupon”, – he said. The Minister also noted that the last two tools were particularly popular with investors this year.

He also recalled that in 2016, the Finance Ministry intends to start issuing government bonds to the public. “We will hold trial editions. If demand is sufficient, we will expand this tool,” he said.

Criticism of ministries

Dmitry Medvedev has criticized ministries and agencies for delays in the preparation of the distribution of funds to the regions and to other programs.

“Subsidies all decisions must be taken, for obvious reasons, it affects the development of entire industries. Pay attention to the fact that a number of decisions on these grants were to be trained before – it is the defects in the work of individual departments”, – said the head of the Cabinet.

To support local farmers

The Russian government will continue to support local farmers. As Medvedev said at the meeting, the Cabinet will take “a number of decisions relating to the support of farmers”.

“It’s about co-financing of expenditure obligations of the regions on priority directions of development of agroindustrial complex, creation of dairy farms, development of cattle-breeding complexes”, – said Medvedev. In his words, “decided on the allocation of funds to regional budgets to reimburse a part of incurred direct costs.” “Greenhouses also sent about a billion rubles”, – added the Prime Minister.

Another focus will be the distribution of interbudgetary transfers to regions where agriculture has been affected in 2015 by the weather. “The damage will be compensated to farmers in 11 regions – 10 of them affected, Primorje – flood – for this purpose amount to 3.8 billion rubles”, – said the Prime Minister.