23 May 2011 15:28

MinFin mulling measures to discourage state cos from borrowing abroad

ASTANA. May 23 (Interfax) - The Russian Finance Ministry is looking at measures to discourage government-related companies from borrowing abroad, Deputy Finance Minister Sergei Storchak told reporters.

"We'd like to have instruments that could influence the situation in general," Storchak said, adding that using directives for government officials on board of directors to limit borrowing was not a market measure.

He said debt provisioning or fiscal measures might be introduced as a disincentive for these companies to borrow abroad and get them to focus more on domestic borrowing.

This issue has been under discussion for eight years, but attempts to resolve the problem of foreign borrowing via boards of directors have failed, Storchak said.