GENERICO.ruEconomicsSiluanov estimated the size of the Russian government debt

Siluanov estimated the size of the Russian government debt

MOSCOW, March 22 The Russian government debt is small, but the costs of servicing it are large, said Russian Finance Minister Anton Siluanov, giving a lecture at the Financial University .
“”The debt is small – we have a debt of 15% of the gross domestic product. But the costs of servicing the debt are large. If you and I look and compare how Russia carries out these costs (performs – ed.), then in 2019 the level of costs for servicing the debt to income was about 3.6%. In 2026, according to estimates, if we carry out our planned borrowings, it will be … a little less than 10%. Well, where is this? This is a lot,” Siluanov said.

According to the minister, this suggests that Russia will increase the cost of servicing this debt. “If you look at the structure of budget expenditures, we will increase spending on debt servicing, since our debt is falling both at fixed rates and at floating rates,” the minister explained.

“We are now approaching the size of floating rates in the debt structure to half of the total debt. We are now borrowing ten-year securities at 13.4%. 13.4%! For us, of course, this is , very stressful, since 10 years will have to be paid, even if inflation decreases. We hope that it will still decrease,” Siluanov said, noting that the Russian Federation always needs to look at what price is paid for this debt.
“Confidence in public debt is the basis of financial sustainability and stability,” concluded Siluanov.

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