17 May 2004 01:07
Restrictions on foreign loans for regions to remain
MOSCOW. May 17 (Interfax) - The current restrictions on foreign loans for regions will probably be maintained, Duma
Deputy Mikhail Zadornov said at a press conference Monday.
In discussing amendments to the Budget Code, which is currently being reviewed, the question of foreign loan
restrictions might be raised. Regions can only raise foreign loans to refinance existing debt.
The restrictions are unlikely to be lifted, he said.
There are also restrictions on domestic borrowing, Zadornov said. Amendments to the Budget Code envisage that
starting 2007, temporary adminsitration will be imposed over regions or municipalities with past- due debt exceeding 30%
of their budget revenue.
It is unnecessary to specially widen domestic borrowing for Russian regions, Zadornov said. "I do not think that
would be right," he said.
Domestic borrowing is an element of general budget policy, he said. This element of general policy should be at the
disposal of the regions, but the market determines the actual need for securities. "The more stable the market is
the weaker restrictions will be I think," the deputy said. [RU ASIA EUROPE EEU EMRG ECI GVD DBT FIN] me
[Interfax] |
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