Page 65 - RusRPTMay20

6.1.2​ Budget dynamics - govt funding plans
Russia could need up to RUB2 trillion ($27bn) of additional state borrowing for the federal budget in 2020​, First Deputy Prime Minister Andrei Belousov told the press, as cited by Reuters on April 23. As reported by ​bne IntelliNews,​ policymakersandanalystsarguedthatgivenitsstrongexternal position ​Russia can afford to borrow to finance an adequate response​ to the coronavirus (COVID-19) crisis. Previously ​Finance Minister Anton Siluanov estimated​ that the state support package amid the coronavirus epidemic accounts for RUB3.1 trillion (2.8% of GDP), and that RUB2 trillion will be used to cover the budget deficits from the National Welfare Fund. Belousov estimates that most of the debt issued would be bought out by banks, which currently hold about RUB12 trillion in state bonds. The federal budget for 2020 originally planned for RUB2.3 trillion of domestic and $3bn of foreign borrowings. Previously unnamed sources already told Reuters that in conditions of extremely low oil prices and the need for a fiscal anti-crisis stimulus, the Finance Ministry could borrow extra RUB1-2 trillion. So far the Finance Ministry has sold RUB707bn worth of OFZ bonds, or 30% of planned placements for 2020. As followed by ​bne IntelliNews​, the ​demand for OFZ bonds is solid due to expectations of lower interest rates​, with Russian banks believed to be buying the bonds to replace falling demand for loans.
6.1.3​ Budget dynamics - regions
Russian President Vladimir Putin said on April 16 that Russian regions would receive an additional RUB200bn ($2.7bn) ​as a relief measure amid the new coronavirus outbreak. Russian airlines will also get additional support - more than 23bn rubles, Putin told a government meeting.
65​ RUSSIA Country Report​ May 2020 ​ ​www.intellinews.com