28 Sep 2023 11:25

Russia's Finance Ministry prioritizes placing 'classic' OFZ in focusing on three-year budget policy

MOSCOW. Sept 28 (Interfax) - Russia's Finance Ministry has repeatedly said that it is restrained about the prospects of increasing the share of floaters within the structure of borrowing on the domestic market owing to the risks of a rise in interest costs to the federal budget despite the wishes of banks; and the ministry has prioritized placing "classic" Russian federal loan bonds (OFZ) as part of the program document for the upcoming three-year period, the ministry said in published document on the matter.

"In order to minimize the risks associated with servicing and refinancing public debt, debt policy will continue to focus on attracting the required volume of borrowed resources by prioritizing the supply of bonds with fixed, constant income," according to the Main Directions of Budget, Tax and Customs Tariff Policy for 2024 and the 2025 and 2026 planning period, which the Finance Ministry has published.

"Meantime, a tolerable duration for the debt portfolio will be ensured and the cost of borrowed funds will be minimized by accounting for market conditions, as well as diversifying the supply of debt instruments by type and maturity in order to meet fully the demand of various investor categories, as well as boost liquidity on the debt market," according to the document.