19 January 2004 04:46
Finance Ministry says domestic borrowing okay with budget surplus
The money raised from the GKO-OFZ market is necessary to repay
debt and is a source of financing for the budget deficit, she said.
MOSCOW. Jan 19 (Interfax) - The Russian Finance Ministry considers it justified and economically sound to borrow on
the domestic debt market when there is a federal budget surplus, said Deputy Finance Minister Bella Zlatkis.
"When somebody says: they have a surplus and are still borrowing, it shows the person does not understand the
budget or tax policy," Zlatkis said.
will receive part of the budget surplus in 2004 and has already got
103.5 billion rubles in money leftover from the 2003 budget. The
One of the features of the 2004 budget that justifies borrowing on the domestic market is the formation of a
stabilization fund. The fund
stabilization fund will receive other money in 2004. "This is money that will go from the Russian financial
market to western markets, because money from the stabilization fund can be placed into the highly reliable assets of
other countries."
It seems that the planned 258 billion rubles will be raised on the domestic market in 2004, she said. "We will
be net-borrowers this year, if the market is loyal to the Finance Ministry. We do not plan to take money at rates that
are too high."
Zlatkis said net borrowing on the domestic debt market would be several times higher than it was last year. [RU ASIA
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