Russia to cap foreign borrowing at $7 bn per year: ministry

19th September 2011, Comments 0 comments

Russia may borrow up to $21 billion (15.4 billion euros) on foreign capital markets between next year and 2014, the finance ministry said in a draft budget released on Monday.

The borrowing plans are in line with the ministry's announced intentions last month to triple the size of Russia's public debt in the next three years while keeping most of the borrowing to the domestic bond market.

The ministry said 30-year bonds would be released in annual installments of up to $7 billion.

Russia's current foreign debt to gross domestic product ratio of 11.2 percent is one of the lowest among the world's major nations.

The finance ministry in August said it may bring that level up to 17 percent of GDP by 2014 through domestic market borrowing to compensate for high spending and sluggish growth.

The ministry said it envisaged borrowing up to around $68 billion per year on the markets, mostly in rubles.

© 2011 AFP

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