Russian MinFin plans limited domestic borrowing in 2023-2024

MOSCOW. June 20 (Interfax) - The Russian Finance Ministry is planning limited domestic market borrowing in 2023-2024 in order to normalize the situation there, a source with knowledge of the ministry's draft Fiscal, Tax and Customs and Tariff Policy Guidelines for 2023 and the 2024-2025 planning period told Interfax.

Domestic borrowing will be the main source of funding to cover the budget deficit. The ministry expects net borrowing in the domestic market will be 1.054 trillion rubles in 2023, rising to 1.462 trillion rubles in 2024 but as much as 2.385 trillion rubles in 2025. There will be negative net borrowing of minus 966 billion rubles in 2022 because auctions to place federal loan bonds or OFZ have been suspended.

The MinFin does not plan to borrow in foreign currency in 2023-2025 due to foreign restrictions.