Russian foreign debt could drop to $500 bln by Oct 1 - dep. finance minister
MOSCOW. Sept 17 (Interfax) - Russia's foreign debt will shrink to $500 billion by October 1, 2015 from $550 billion as of July 1, Deputy Finance Minister Maxim Oreshkin said at a conference on the macroeconomic situation and the banking sector organized by Fitch.
"The current situation is unprecedented for Russia. The decrease in prices that we are seeing is very similar to the decrease in prices that the USSR faced in the first half of the 1980s. However, at that time the hole in the balance of payments was plugged by major foreign borrowing. Now the shock on commodity markets is being compounded by the factor of sanctions. While before all events Russia was increasing its foreign debt, starting with the second half of last year it is being paid down rapidly. Just recently, according to the Central Bank's estimate, it totalled $720 billion, as of July 1 it was $550 billion, as of October 1 we'll see a figure close to $500 billion," Oreshkin said.
Oreshkin also noted the gradual return of Russian companies to foreign markets. "Already in the summer the syndicated lending market came back to life. Now several Russian companies are holding active talks about the placement of Eurobonds on international markets," he said.