Russian govt to write off budget loans totaling 43 bln rubles for 25 regions - PM Mishustin

MOSCOW. July 14 (Interfax) - The Russian government plans to write off debt from budget loans totaling 43 billion rubles for another 25 regions, Prime Minister Mikhail Mishustin said at a meeting with the deputy prime ministers.

Mishustin recalled that new rules for writing off regions' budget debt were adopted in February that envisage possibly writing off two-thirds of the debt if the released resources have been invested in infrastructure projects.

"Representatives of the Far Eastern Federal District and the Arctic zone will also be able to direct finances to implement master plans for their cities in line with the instructions of the head of state, and regions with low budgetary security to implement national projects and events related to the special military operation. Today, we will write off these loans for 25 Russian constituent entities totaling nearly 43 billion rubles. The funds that remain in the regions will assist in expanding the resolution of important tasks for our citizens, which should undoubtedly affect the dynamics of both the federal and regional economies positively, and the social sphere of course," Mishustin said.

Mishustin signed a government order on July 10 that stipulates loans will be written off for the Altai Republic, Buryatia, Dagestan, the Kabardino-Balkaria Republic, the Karachay-Cherkessia Republic, Crimea, the Mari El Republic, North Ossetia-Alania, Tyva, the Trans-Baikal Territory, the Perm Territory, the Khabarovsk Territory, the Arkhangelsk, Bryansk, Kaluga, Kurgan, Novgorod, Omsk, Oryol, Pskov, Samara, Sverdlovsk, Chelyabinsk, and Yaroslavl regions, and the Jewish Autonomous Region.

Debt incurred as of March 1, 2024, will be written off. The exception is debt on budget loans provided for financial support to implement infrastructure projects, to replenish the balance of funds in the single budget account, and on budget loans for temporarily available funds of the single federal budget account for up to 15 years with a usage fee of 3% per annum, with the right of early repayment, totaling 42.714 billion rubles.

The Finance Ministry previously reported that it had concluded agreements to write off the debt of the Altai Territory, the Stavropol Territory, and Adygea totaling 15.6 billion rubles. Thus, the debt write-off will affect 28 regions at the current stage.