REUTERS
Russian Finance Minister Anton Siluanov opposes the idea of using the country's Reserve Fund for repayment of public debt amid current economic situation, saying there is a danger that the Reserve Fund could be exhausted in 2017, according to RIA Novosti.
It is reported that in January, deputies addressed the Russian government with a request to take measures for the repayment of public debt at the expense of resources of sovereign funds instead of using them to buy U.S. Treasury bonds. The Communists also offered to completely abandon borrowing at a high-interest rate instead of using own funds from the Reserve Fund and the National Welfare Fund.
The use of the Reserve Fund for repayment of public debt in the current environment is inexpedient, the Finance Minister said.
Read alsoMoody's warning highlights pressure on Russia to adapt to lower oilThe minister noted that such a possibility is provided for by the Budget Code and was implemented in 2005-2007 years when the federal budget posted significant surplus. Currently, the budget deficit for 2016 is projected at 2.4 trillion rubles, therefore, the Reserve Fund's resources will be spent to finance budget expenditures, including on ensuring social security programs.
"The proposal to refuse from attracting loans using instead the resources of (sovereign) funds is not supported either," the Russian Finance Ministry said in its statement.
Siluanov recalled that sovereign funds and government borrowings are the main sources of financing the budget deficit. The accumulation of oil and gas revenue also influences the assessment of the Russian economy attractiveness for foreign investors, the minister said.
It is reported that in 2014 and 2015, Russia did not borrow from international capital markets due to the unfavorable geopolitical situation. In 2016, Russia plans to attract $3 billion in borrowing, as reported.