The Ministry of Finance for the second time in a week plan increased loans to 100 billion rubles.


Limit the amount of net domestic borrowing of Russia in 2016 will increase by 200 billion rubles, reports “Interfax”, said at the investment forum in Sochi the Minister of Finance Anton Siluanov. Thus, the plan to borrow in the domestic market will be a maximum of 500 billion rubles.

The current law on the budget envisages net borrowing (placement of new securities minus repayment of old) at the level of 300 billion roubles in 2016. Siluanov announces the increase in the limit for the second time last time at the Moscow financial forum last Friday, the Finance Minister said that the program of domestic borrowing will increase by 100 billion rubles.

With the increase of the limit of the Finance Ministry before the end of the year will take 30-40 bn in the week, said in Sochi Siluanov. He explained that such a pace is scheduled to take in next year, when the volume of net internal borrowing exceed 1 trillion rubles In 2016 as of 21 September, the Finance Ministry has placed OFZ in the amount of 758 billion rubles, follows from the data of the Department.

According to the results of the September auction the Finance Ministry placed OFZ bonds with a permanent coupon yield of about 8.3% per annum. Interest expenses for servicing internal debt in 2016 is expected to amount to about 470 billion rubles, and another 500 billion rubles will be directed on repayment of the securities. If the Finance Ministry will take up to the end of the year 30-40 billion rubles in a week, this will greatly limit the potential for price growth OFZ, especially the long papers, commented in his review of Raiffeisenbank, the yield of long securities could rise by 25-50 basis points.

The Finance Ministry is stepping up not only internal but also external borrowing. In 2016, he has already reached the limit of $3 billion in may he sold the paper for $1.75 billion, and on September 22 placed Eurobonds for $1.25 billion next year on external loans Ministry of Finance may return to the limit of $7 billion.

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