17 June 2004 01:31
Govt needs to discuss policy on domestic debt market - Gref
MOSCOW. June 17 (Interfax) - Economic Development and Trade Minister German Gref has proposed that government meet to
discuss its approach to domestic debt market policy.
More clarity is required about the future development of the
domestic debt market so that investors have the opportunity to
There are a list of issues regarding borrowing on the domestic market that require serious discussion, Gref said at a
Cabinet meeting Thursday. The Finance Ministry agrees with the Economic Development Ministry that such discussion is
needed and a decision must be taken that will be considered in 2005 budget discussions.
"I am not sure about there being a correlation between additional
placements on the domestic market and a reduction in fixed capital
temporarily place funds in financial instruments, the minister said. Government borrowing should become a benchmark
for the domestic debt market, Gref said.
investments," he said.
The difference in yield rates between government borrowing and fixed capital investment is 6 percentage points.
"This indicates that the problem of competition does not exist right now," he said, adding that the situation
was different in 1997 when the GKO market, with yield of 1,200% annually, sucked up all funds in the country. [RU ASIA
EUROPE EEU EMRG ECI GVD] me
[Interfax] |
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