Sunday, 29 September 2013

Finance Ministry Plans Domestic Borrowing of $6.2Bln | Business | The Moscow Times

Finance Ministry Plans Domestic Borrowing of $6.2Bln | Business | The Moscow Times:

"The Finance Ministry may borrow 200 billion rubles ($6.19 billion) less than initially planned from domestic debt markets this year, broadly in line with current market expectations, the ministry said Friday.

Demand for local-currency emerging market debt has been subdued recently due to expectations of tighter monetary policy from the U.S. Federal Reserve.

Russia missed its third-quarter funding target for treasury bonds, placing about 177 billion rubles ($5.52 billion) out of the 270 billion rubles planned between July to September. It has placed 529 billion rubles in treasury bonds so far this year out of the 753 billion rubles on offer.

But with one of the lowest debt burdens among major world economies it is under little pressure to ensure it meets its initial target for domestic borrowing this year of 1.2 trillion rubles.

"There is a risk of not borrowing [200 billion rubles]. We have a chance to borrow, but at a high yield. That is why we would prefer to use oil revenues, rather than raising rates on the market," Finance Minister Anton Siluanov told journalists.

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