Russian MinFin not planning to up 2023 borrowing, floating rate bonds still in frame

MOSCOW. March 24 (Interfax) - The Russian Finance Ministry does not intend to increase planned borrowing in 2023.

The budget deficit was 2.6 trillion rubles for January-February, according to preliminary data. The target for the whole year is around 2.9 trillion rubles.

According to the Electronic Budget website, budget revenue was 3.363 trillion rubles and spending was 7.227 trillion rubles as of March 22, in other words the deficit had reached nearly 3.9 trillion rubles by that date. However the intra-month breakdown might not give a full picture of budget execution due to the schedule for receipt of tax payments. Also, the Finance Ministry's borrowing has been fairly subdued since the start of 2023, with placements of the most popular floating-rate OFZ federal bonds off the menu.

"No, there are no such plans," Denis Mamonov, deputy director of the ministry's Public Debt Department, said during an online seminar on financial and fiscal literacy, when asked about a potential increase in the borrowing plan.

He said floaters were still in the frame, but the ministry still maintained a cautious approach to them due to the risk of higher interest spending by the budget.

"This instrument is still very much on the agenda, and, if we see significant demand, we may offer it," he said, adding that "there's no point fooling around with it." He did say when new floaters might be placed, adding only that they would be offered when the MinFin considers that "demand is ripe."