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Friday, October 28, 2016

The Ministry of Finance confirmed the possibility of the exhaustion of the Reserve Fund in 2017

Deputy Finance Minister Sergei Storchak admitted the possibility of draining the country’s Reserve Fund next year. Against this background, the leaked reports that the country could borrow on the external market up to three billion dollars annually.

photo: Marat Abulhasan

“You understand that there are different levels of political decision-making. Now this level is much higher than my” quoted Storchak TASS.

Before Reuters referring to sources in the Ministry of Finance announced that the Reserve Fund may be exhausted in 2017. To overcome the budget deficit, the Agency proposed to eliminate 40 percent of the national welfare Fund and to increase borrowing on the domestic market several times.

Note that the current year’s budget was prepared on the basis of prices for the Urals oil at $ 50 per barrel. The resulting deficit of 2.36 trillion rubles covered by the Reserve Fund. On July 1, 2016, its volume amounted to 2.46 trillion rubles, while the national welfare Fund are to 4.68 trillion rubles.

Against this background, Bloomberg, citing its sources said that the Finance Ministry has proposed to enshrine in the budget for 2017-2019 the ability to borrow on international markets up to three billion dollars annually.

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