31 Jul 2009 11:12

Minfin: interest on external borrowing won

MOSCOW. July 31 (Interfax) - The interest rate Russia pays on the state's external borrowing with 10-year instruments won't exceed 8% in 2010, 7% in 2011 and 6% in 2012, according to Finance Ministry materials prepared for a government session.

The cost of domestic borrowing, on instruments with maturities of one-three years, will not exceed 13.0% in 2010, 10.0% in 2011 and 9.0% in 2012, according to the Finance Ministry's assumptions.

The debt-servicing cost to the budget is projected at 333.2 billion rubles in 2010 (0.8% of GDP), 487.3 billion rubles in 2011 (1%) and 602.9 billion rubles in 2012 (1.2%).

The Finance Ministry expects to spend 235.1 billion rubles (0.6% of GDP) to service the state debt in 2009. Thus, the cost of servicing state debt will increase 160% in nominal terms in the three years and 100% in terms of GDP percentage.

The state debt will rise to 13.4% of GDP in 2010, 15.7% in 2011 and 16.4% in 2012.

The domestic debt will total 3.5918 trillion rubles in 2010 and the external debt will total 2.0975 trillion rubles, in 2011 - 4.3557 trillion rubles and 2.9733 trillion rubles respectively and in 2012 - 4.5573 trillion rubles and 3.9949 trillion rubles.

The state debt will amount to 10.5% of GDP in 2009, with the domestic debt totaling 2.6983 trillion rubles at year-end and the external debt - 1.3609 trillion rubles.