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mentioned that the measure might cover up to seven million employees, which means that the maximum amount of the loan size could be as high as RUB 500bn.
SMEs and individual entrepreneurs from the hardest hit sectors are to receive a tax holiday for all taxes (ex. VAT) and social contributions due for 2Q20. The president estimated that about 1.5 million enterprises would qualify for this measure.
For families with children between the ages of 3 and 16, there will also be a one-time payment starting in June of RUB 10k/child. There are about 20 million children in this age bracket, so, assuming the full take up of this measure, it could cost up to RUB 200bn.
6.2 Debt
Russia - External debt 2012 2013 2014 2015 2016 2017 Jan-Jun ‘18
Budget: external debt (USD bn)
2,363.52 2,844.56 2,729.43 2,169.01 2,073.22 2,096.24 1,005.41
Budget: external debt (% GDP)
29.02 31.73 29.07 37.89 39.83 32.84 /
source: CEIC, CBR
Debt remains low. The external debt of the Russian Federation as of April 1, 2020, according to the Bank of Russia, amounted to $450.0bn, decreasing from the beginning of the year by $40.8bn, or 8.3%. However, the entire debt is more than covered by the gross international reserves of c.$570bn.
A key role in the dynamics of the indicator was played by a negative revaluation due to the weakening of the Russian ruble. The influence of this factor was most noticeable on the reduction of the accumulated amount of debt on debt securities of the Government of the Russian Federation and the external liabilities of other sectors.
Russia has the potential to build up sovereign debt, said the head of the Central Bank Elvira Nabiullina during an online conference on May 8.
"We really have a fairly low debt, one of the lowest. Of course, we have the potential to increase sovereign debt in some way," she said. "A certain increase in public debt is possible, it is being discussed, but we must do it carefully. The Central Bank does not plan to participate in the direct redemption of the sovereign debt," she said.
69 RUSSIA Country Report July 2020 www.intellinews.com
