NWF money to be released for projects according to schedule
MOSCOW. June 18 (Interfax) - Russia's Finance Ministry will develop a schedule for releasing money from the National Welfare Fund (NWF) for financing of infrastructure projects so that this money does not end up being stuck in bank deposits earning interest for someone else, Deputy Finance Minister Sergei Storchak told reporters on Tuesday.
"A schedule for the release of resources will be approved. We won't allow for resources to be released and used for five years, meanwhile being hung up in deposits at commercial banks, earning a return for the beneficiary rather than the budget," Storchak said.
He said this has happened in the past and the Audit Chamber has drawn attention to it. "They're our allies in this sense. I think that nobody needs excessive funding, particularly fund with free money," Storchak said.
Prime Minister Dmitry Medvedev earlier raised the limit on NWF money that can be used to help finance infrastructure projects that will recoup their costs to 60% from 40%.
He signed a resolution that sets the limit for NWF money that can be used to implement infrastructure projects that will pay for themselves and placed in deposits and accounts at banks, lending institutions and Vnesheconombank (VEB) at 40% of the total amount of NWF funds as of January 1, 2014, at 10% for projects implemented with the participation of the Russian Direct Investment Fund (RDIF) and 10% for projects implemented by state corporation Rosatom.
Storchak said this decision surprised him. At the same time, despite the talk of spending NWF money, "not a kopeck has been spent yet," he said.
"The pace of financing of projects for which these funds are being allocated is a thing in itself, many procedural issues have not been resolved there. Including the technical audit of projects. These are serious matters, they can take months. Therefore, at this stage all the money that was in our safety cushion is still there. Companies can calmly work, prepare documents well. Thereafter investment will begin," Storchak said.