Financing of deficit as reserves, and by increasing debt leads to an increase in net debt, said the first Deputy Chairman of the Bank of Russia Ksenia Yudaeva.
MOSCOW, 13 Jan. The government of the Russian Federation in the conditions of adverse conjuncture on commodity markets best way to Finance the budget deficit through borrowing, keeping a reserve in case more private debt markets, said the first Deputy Chairman of the Bank of Russia Ksenia Yudaeva.
“Since the risks in commodity markets is high, in our view, priority in the current situation should be given to debt financing and conservation reserves in case of implementing more complex scenarios, when access to debt financing will be more difficult,” said Yudaeva, speaking at the Gaidar economic forum.
According to her, financing the deficit through reserves, and by increasing debt leads to higher net debt.
“A certain stock of reserves is definitely the insurance from the point of view of the market and simplifies access to debt financing,” she added.