Russia's debt policy has been very careful

28 july 2017 | RBC

The Russian state may become a net debtor next year, even though up to this point it has traditionally been playing the role of a net creditor, RBC writes. "When assessing the macroeconomic stability of a country, a key parameter is not the difference between the amount of loans taken and loans issued, but the amount of state debt," Deputy Head of the Analytical Center Gleb Pokatovich commented.

Gleb Pokatovich
Gleb Pokatovich
Deputy Head

Mr. Pokatovich is of the opinion that the current parameters of Russia's state debt look pretty good. Russia's been pursuing a very careful debt policy. Even if the Finance Ministry steps up borrowing from external sources, that can hardly have a major negative impact on the situation," the expert stresses. "If they (the Finance Ministry - RBC) manage to raise debt abroad, they'll offer rates that are very attractive to potential investors and comfortable for the Finance Ministry."

In 2016 Russia’s state debt, according to the Guidelines for debt management by the Russian Finance Ministry, resulted in 13.2 % of GDP, and the Ministry is planning to increase borrowing up to 15.3 % of GDP by 2019.

For now the state debt accounts for 10 trillion rubles, according to RBC. Russia’s main lender is the financial sector – 6.3 trillion rubles. Russia owes 2.44 trillion rubles to foreign lenders. The main borrower is the Central Bank of Russia (6.6 trillion rubles). Foreign borrowers scaled back on debts by 457 billion rubles in 2016 due to debt relief for some countries.