Ministry of Finance of the Russian Federation
Ministry of Finance of the Russian Federation
06.06.2011

Statements of Deputy Head of the Government of the Russian Federation – Finance Minister of the Russian Federation A. Kudrin

 

Privatization is among terms of EurAsEC's loan for Belarus - Kudrin

KYIV. June 4 (Interfax) - Privatization of state-owned property worth in aggregate $7.5 billion remains among the terms of the extension of a loan to Belarus from the Eurasian Economic Community (EurAsEC) anti-crisis fund, Russian Deputy Prime Minister and Finance Minister Alexei Kudrin told journalists following the fund's meeting on Saturday.

"A number of measures are to be taken on the loan to Belarus, which should stabilize the balance of payments. One of these factors is the drawing of investments," Kudrin said.

As privatization is the principal factor promoting capital inflow, "there are privatization terms for the loan, which envision the privatization of property worth $7.5 billion in three years, that is, $2.5 billion each year," he said.

"This term certainly remains in force," Kudrin said.

"Nobody says that property should be sold at reduced prices or without tenders. This should be conducted in line with procedures recognized in the world," he said.

As for Russia, its privatization program envisions the selling of $10 billion worth of state-owned property a year, and this will involve top-class assets, such as stakes in VTB, Sberbank, Rosneft, Socvomflot, and other companies, Kudrin said.

Russia believes the same measures should be applied to other countries, Kudrin said. "We believe they will have a positive and stabilizing effect for the economy in this situation," he said.

Belarusian Finance Minister Andrei Kharkovets noted that $7.5 billion is the sum the Belarusian economy needs to stabilize its balance of payments.

 

EurAsEC to extend $3 bln floating-rate loan to Belarus for 10 years - Kudrin  

KYIV. June 4 (Interfax) - The board of the Eurasian Economic Community (EurAsEC) anti-crisis fund endorsed the extension of a $3 billion floating-rate loan to Belarus for ten years at a meeting on Saturday, Russian Deputy Prime Minister and Finance Minister Alexei Kudrin told journalists following the meeting.

"We have considered the extension of a $3 billion loan to the Republic of Belarus. We made a positive decision today. The loan will be extended for ten years with a three-year grace period. The interest rate will be floating, it will correlate with the [rate] of Russia's borrowings, which is about 4.1% at the moment," he said.

Belarus will receive the first tranche amounting to $800 million endorsed by the board within 10-15 days upon the completion of the essential domestic procedures and the signing of the agreement, he said.

The extension of the next tranche of $440 million will be considered at the end of the year, and its terms will be based on the October 31 indicators, Kudrin said. "Hence, the entire size of the loan this year will be $1.24 billion," he said.

The fund's board has also taken note of a letter of intent by the Belarusian government and the National Bank of Belarus on measures to be taken "within this period and within the next three years."

Apart from the loan for Belarus, the EurAsEC anti-crisis fund board also considered a loan for Armenia at the Saturday meeting. In particular, the participants determined a set of terms Armenia has to comply with to receive a loan.

"A decision on a $400 million loan for Armenia for restructuring a number of economic sectors will be made at the next board meeting within the next few months," Kudrin said.

 

Confidence in ruble may increase if inflation remains low for long time - Kudrin

KYIV. June 4 (Interfax) - Russian Finance Minister Alexei Kudrin believes the world's confidence in the Russian ruble may increase if the government and the Central Bank can keep inflation at a low level for a long time.

"If Russia can keep inflation at 3-4% for 5-6 years, it will produce a new quality of the [Russian] currency," Kudrin told a briefing following a meeting of the fiance ministers of the CIS countries held in Kyiv on Saturday.

After that, some time will be needed for investors to become confident that the government and the Central Bank can really keep inflation low, he said.

Kudrin believes this is essential to "a considerable increase of confidence in the ruble and considerable expansion of settlements in rubles."

 

Russia's Kudrin: 3%-4% Inflation Over 5-6 Years Gives 'New Quality' To Ruble

KIEV -(Dow Jones)- The Russian ruble will attain "new quality" if the country manages to lower inflation to between 3% to 4% and maintain it for five to six years, which in turn gives the currency a larger role in trade, Russian Finance Minister Alexei Kudrin said Saturday.

Speaking after a meeting of the former Soviet states' finance ministers, he said Russia must maintain financial stability, as its ruble is one of the 20 global fully convertible currencies. Russia has long advocated larger usage of the ruble in trade between former Soviet states. Ukraine, which buys natural gas from Russia, also wants to pay for it in rubles rather than in dollars, but Kudrin said dollars remains the dominate currency for oil and gas trade.

Ukrainian Finance Minister Fedor Yaroshenko said the country is looking into "servicing its state and local debts in rubles with dollar swaps", but didn't provide further details.

The ministers are to decide on the $3 billion bailout loan from the special stability fund to a cash-strapped Belarus later Saturday. Kudrin said he thinks the result of the vote on whether to give the loan "will be positive."

The Russian government expects 2011 inflation between 6.5% and 7.5%.