17 June 2004 22:38
Russia may shelve Eurobond plans in 2004 - Kudrin (Part 2)
MOSCOW. June 17 (Interfax) - The Russian Finance Ministry is suggesting that Russia shelve Eurobond issues this year,
but place up to $2.5 billion in new paper in 2005, Finance Minister Alexei Kudrin told Thursday's Cabinet
meeting.
The government had planned to raise $2.7 billion with Eurobond
issues in 2004, but it will now be able to do with out this thanks to
The ministry does not see any need to borrow abroad in view of today's high oil prices, Kudrin said. "It
would not be logical to build the stabilization fund up and then place it at 3% annually on the world markets, but
borrow at 7%-8%. I suggest not borrowing," Kudrin said.
year the stabilization fund will contain more than the 500 billion
rubles that have to be collected before it can be used for the first
the additional revenues that are coming in. Russia will be able to put 41 billion rubles of these additional revenues
into the budget as well as keep up with deductions to the stabilization fund, and the country will save money on foreign
debt servicing and repayments thanks to the stronger ruble. "We will be able to mobilize 86 billion rubles, which
will enable us to dispense with Eurobonds this year," Kudrin said.
Russia will, though, have to borrow $2.5 billion abroad to balance its budget in 2005, Kudrin said. Although the
domestic borrowing balance will be 135 billion rubles in surplus, Russia will have an external borrowing deficit of 226
billion rubles, he said. Not even $2.5 billion in Eurobonds will suffice for net repayments, and the government might
have to draw on the stabilization fund to repay foreign debt. By next
time. [RU ASIA EUROPE EEU EMRG EUB GVD] pr
[Interfax] |
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