The Stabilization Fund will not be a dead weight but will be spent to equalize the foreign and domestic balance

Monday, February 24, 2020

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"The Stabilization Fund will allocate 57 billion rubles ($1=27.72 rubles) in 2006, 100 billion rubles in 2007 and 37 billion rubles in 2008 for keeping the balance," said Russian Finance Minister Alexei Kudrin. According to him, the Stabilization Fund should be used, as Russia will see domestic surplus in the next few years thanks to increasing investment, while foreign balance will be negative. "The Stabilization Fund will help balance it," said the minister. In the next three years, Russia is not going to pay its foreign debt completely. "Nobody has set such a task, as it is impossible," the minister said. According to him, in 2006-08, the debt policy approved by the government session on Thursday will be aimed at meeting Russia's debt obligations on time, and it is also possible to pay part of the debt in advance, the minister said. As of the beginning of 2005, the foreign debt totaled over $112 billion, Kudrin said. In the next three years, Russia is not going to issue Eurobonds. "I admit that someday we will be able to return to the foreign market, but we are not going to place Eurobonds on the foreign market in the next three years," the minister said. Kudrin recalled that Russia's debt repayment policy was aimed at raising the share of domestic loans in the total foreign debt and reducing the foreign debt. In this connection, the Finance Ministry intends to extend the list of investment instruments employed on the domestic market, said Kudrin. He emphasized that such efforts had been made in the past few years on a regular basis. In particular, state savings bonds were issued.

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