Putin: Russia has enough financial strength to cover expenses

MOSCOW, Sep 2 (PRIME) -- Russia has enough financial strength to cover budget spending, President Vladimir Putin said in an interview with Bloomberg released Friday.

“There are enough investors that are ready to buy our financial instruments. We just do not have such necessity today. With the government having such reserve funds of U.S. $100 billion, this has no sense, keeping in mind the cost of borrowings,” he said.

“Borrowings are also possible. We should only understand what is more profitable at this particular moment,” Putin said.

Putin also said that he was not interfering in decisions of the central bank and was not giving any instructions. The ruble rate should correspond with indicators of the country’s economic development, he also said.

“I do not interfere in decisions of the central bank and I do not give any directive instructions to the central bank’s management or its chairman. And if I say that the ruble has strengthened much I do not say that the central bank’s position is wrong,” he said.

Russia is not interested in the collapse of the euro zone, as the country stores 40% of its currency reserves in euros.

Putin said the euro area could someday shrink in size if its stronger members sought to close ranks.

“I don’t rule out that there could be some decisions made that would consolidate a group of countries with equal levels of development and, thereby, in my opinion, strengthening the euro,” Putin said.

Russia’s budget deficit will amount to 3% of gross domestic product (GDP) in 2016, which is quite acceptable, Putin also said.

Russia is ready for a dialogue with the U.K. if London expresses such interest, the president also said.

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