7 Jul 2010 13:20

Costs to service public debt will rise 110% in 2012 vs 2010 - Kudrin

MOSCOW. July 7 (Interfax) - The cost of servicing Russia's state debt will increase 110% in 2012 compared with 2010, Deputy Prime Minister and Finance Minister Alexei Kudrin said in the State Duma on Wednesday.

"Beginning next year, borrowing will be the main source for coving the deficit. If we do borrow, even if the deficit is reduced to 2% in 2013, the debt servicing costs will rise to 587 billion rubles in 2012 from 280 billion rubles this year, that is, a 110% increase in debt servicing costs," he said.

"Any deficit entails an increase in debt servicing costs," he said.