The Finance Ministry has not abandoned plans to float Eurobonds

The Finance Ministry has not abandoned plans to float Eurobonds


Moscow. March 25. Russia is not abandoning plans to enter the foreign market, reported to journalists the Deputy Minister of Finance Sergey Storchak.

“We don’t refuse,” he said, speaking about the RF output on the external market borrowings. Also, answering the question about whether there is some kind of “deadline” on release, he said, “we don’t Have”.

The Deputy Minister also noted that the placement of Eurobonds was not intended to Finance the budget deficit of the Russian Federation. “Eurobonds to be on the market, this is not a fiscal function in this case. How was the return to markets the main goal is not fiscal, but a “demonstration of the flag”, and remains, no one’s been canceled,” he said.

“The budget deficit is closed by the Reserve Fund and domestic borrowing. First Reserve Fund, then borrowing. (…) They, thank God, so far enough, we rely primarily on Reserve Fund,” – said Storchak.

Speaking about the possibility of increasing the volume of domestic borrowings of the Russian Federation this year, the Deputy Minister explained that although the demand for OFZ (Federal loan bonds) is good, “to infinity” to increase their volume, to squeeze out of the market corporate borrowers. “According to the Central Bank, liquidity in the financial system is more than enough. Recent auctions show that demand for OFZs is very good, and it’s easy enough if necessary to increase the gross borrowings in excess of approved plans,” he said.

“While there is no need (to increase domestic borrowing). I enjoy watching the statistics that the amount of negotiable bonds of the corporate sector is already decently more than the sum of our bonds in the market. This is a very good sign, why do we dispense a “corporate” bond market”, – said he.

Answering the question, what, according to the Finance Ministry, the level of increases in the volume of OFZs this year, Storchak said: “as soon As the market begins to ask a premium to the yield curve indicates saturation (…), it means that the market is already overheated our releases, we need to pause”.

Earlier Friday, foreign media raised the issue of probable placement of Russian Eurobonds. Possible appearance on the world market new Russian Eurobonds can be put before a difficult choice not only banks-organizers, and investors – the market may force them to go for buying, in spite of the risks.

For fear of problems with the regulatory authorities administering the largest European funds can evade the purchase of the securities, writes Bloomberg. Among the structures that do not would like to draw the attention of regulators as potential violators, the Agency calls Allianz Global Investors Europe, Union Investment Privatfonds, Deka Investment.

Russia is not occupying foreign markets since 2013, plans in 2016 to place Eurobonds on the whole are recorded in the budget amount to three billion dollars. The prospects for placement of Russia’s Eurobonds, despite possible limitations, said earlier the Minister of economic development Alexei Ulyukayev.