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Finance Ministry: Russia may borrow abroad

Finance Ministry: Russia may borrow abroad

A senior official said Thursday that Russia may decide to borrow abroad to cover its $87 billion budget deficit, rather than tapping its rainy-day fund, Russian news agencies reported.
Russia's top officials _ including Prime Minister Vladimir Putin _ have so far brushed off suggestions of possible foreign borrowing and have said that the country's 4.9-trillion-ruble ($142 billion) Reserve Fund would be enough to cover the impending budget deficit.
However, Konstantin Vyshkovsky, head of the Finance Ministry's international financial relations department, said that Russia may opt for not drawing down the Reserve Fund and borrowing abroad.
"Keeping money in the Reserve Fund would ensure that Russia continues to have a high credit rating, which will allow it to borrow at low interest rates," he said, according to the Interfax news agency.
Russia has amended its 2009 budget to boost spending this year in an effort to steady the country through its worst economic crisis in a decade.
The budget deficit _ the first in years _ will run to 3 trillion rubles ($87 billion), or 7.4 percent of gross domestic output.
For the past decade, Russia has shunned sizeable borrowing. Its financial policy focused on repaying the country's huge foreign debt _ some of which was the legacy of the Soviet Union.
The country's foreign debt currently stands at $40 billion, or 3 percent of the country's GDP.


Updated : 2021-10-23 15:37 GMT+08:00