NUSA DUA, Indonesia, Oct 15 (PRIME) – There is no need in foreign borrowing in 2019, Deputy Finance Minister Sergei Storchak told reporters on Monday.
Russia’s 2019 budget draft includes issuance of U.S. $3 billion of Eurobonds and a buyback of up to $4 billion Eurobonds in 2019.
“There is no need for us to borrow in foreign currencies as well. There is an option for that in 2019, but we are fine with not it,” Storchak said.
“The recent experience of our colleagues from emerging markets shows that the political decision that we made many years ago that the domestic market is a major source for borrowing was a right decision.”
The ministry is also considering borrowing in the Chinese yuan, though the debt would not be very important, he said, adding that Moscow constantly receives mixed signals on whether the Chinese government has created prerequisites for Russia to borrow in the Chinese yuan or not.
“We would like the Chinese investors to come to the Moscow Exchange, that’s why we think that we don’t fully understand to what extent the Chinese regulators are ready to allow investors to conduct these operations and act as Russia’s creditors, while Russia issues and sells yuan bonds here in Moscow,” he said.
He also said that the Asian Infrastructure Investment Bank is preparing a legal base for investment in the Russian projects while the Russian government is preparing changes in the Budget Code that would allow it to issue state guarantees for loans provided by the bank. The bank is young and is not willing to lend money directly to businesses without state guarantees, he said.
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