Ruble payments for yuan bonds meet interests of Russian holders - MinFin

MOSCOW. Oct 18 (Interfax) - The Russian Finance Ministry has voiced support for the practice of making coupon payments in rubles for yuan-denominated bonds, which has been criticized by some participants in the debt market and the Moscow Exchange .

The practice not only does not infringe investors' rights, but also corresponds to government policy, the MinFin said.

"It is better [if issuers make coupon payments in rubles], certainly for Russian holders," Deputy Finance Minister Alexei Moiseyev told journalists on the sidelines of the Moscow Financial Forum, when commenting on the course of discussion on this topic.

"Actually, if you remember, this is exactly the ideology that was implemented in all the regulations, in decree number 430 and others, where we said, pay in rubles at the corresponding exchange rate," he said.

"In conditions where the exchange-traded currency market has effectively been destroyed - let's say this openly, it's essentially destroyed; for the most part we only have OTC left aside from the yuan - then in my view all such settlements should be done in rubles," he said.