Russian Finance Ministry may pause OFZ auctions due to market situation, notes large budget reserves
RUSSIA. March 9 (Interfax) - The Russian Finance Ministry has announced a possible pause in federal loan bond (OFZ) auctions due to the high volatility of financial markets.
The ministry said in a statement available on its website that any decisions regarding OFZ auctions would be made in the context of the market situation for the purpose of promoting market stabilization and preventing excessive pressure on the bond market.
The reduction of borrowings below the planned targets could be compensated from other sources of financing the budget deficit, including the balance of the consolidated account of the federal budget. "The balance of the Federal Treasury's accounts in the Central Bank (except for additional oil and gas revenue), financial institutions, and repo transactions amounted to 4.2 trillion rubles as of March 1, 2020," the ministry said.