Russian state and corporate bonds to see high demand - Kudrin
WASHINGTON. April 18 (Interfax0 - Russian state and corporate bonds will encounter demand with a low rate of state debt if Moscow is able to meet its strict macroeconomic goals, Deputy Prime Minsiter and Finance Minister Alexei Kudrin said in an interview will television station Russian Today.
"If Russia is able to support strict macroeconomic parameters for its economy, both Russian corporate and state bonds will see good demand. Our assets will also grow," Kudrin said.
Kudrin said that Russia has an advantage over other countries in that it has a much better debt position. For instance, Russia's current state debt comes to around 11% of GDP. In contrast, the Maastricht Treaty stipulates the maximum debt rate for European countries at 60% of GDP.
"The majority of countries now have either reached or topped this level. Over the next five years we will see how the average debt of developed countries will come to 100% of GDP, which is a dangerous zone and uncomfortable for world markets," he said.
The minister said that Italy's debt now tops 100% of GDP while this rate for Japan is now over 200% of GDP.
"They are already in the danger zone. Hence, Russian looks a lot more preferable in this regard," Kudrin said.
"This is our advantage which we will take advantage of in the coming years," he said.
