Ministry of Finance of the Russian Federation
Ministry of Finance of the Russian Federation
12.09.2011

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

 

Russia's Kudrin: 2011 Budget Will Be Balanced

ST. PETERSBURG, Russia -(Dow Jones)- Russian Finance Ministry has narrowed its budget deficit forecasts for years to come and sees balanced budgets both in 2011 and 2015, Finance Minister Alexei Kudrin said Saturday, adding that he expects institutional reforms to pick up after the 2012 presidential elections.

He also said that due to a balanced budget, Russia will borrow less in 2011--1.4 trillion rubles from RUB1.7 trillion ($46.9 billion) envisaged earlier. Russia is not planning to borrow from foreign markets this year.

Speaking at a meeting of Leontief Centre think tank, Kudrin said higher revenues from oil and the nonenergy related part of the economy will help Russia to have a zero budget deficit this year. The ministry expected budget deficit to be 1.3% of gross domestic product in July.

According to Kudrin, the budget deficit is expected to be 1.5% of GDP in 2012, 1.6% of the GDP in 2013, 0.7% of the GDP in 2014 and zero in 2015.

 

Kudrin: Russia In Talks With Cyprus To Provide Loan

ST. PETERSBURG, Russia (Dow Jones)--Finance Minister Alexei Kudrin said Saturday that Russia is in talks with Cyprus to provide a loan.

Kudrin didn't confirm or deny that Cyprus has asked for a loan of up to EUR2.5 billion for up to five years, as newspapers in Cyprus reported Friday.

Asked whether Cyprus's economic situation is as bad as Greece's, he said, "nothing of the kind."

"Cyprus's economic situation is all right," he said, speaking at a meeting of Leontief Centre think tank.

A Cypriot Finance Ministry source confirmed Saturday that Cyprus is in talks with Russia on securing a loan to help provide the country with a cheaper financing option than borrowing on international markets.

"Cyprus is in negotiations with different friendly countries, including Russia. We are closest to reaching an agreement with Russia," the source said, without providing any details on the size of the loan.

Cyprus has seen its borrowing costs rise on secondary markets after repeated downgrades by credit ratings companies, citing its banking sector's exposure to Greece and budgetary risks.

 

EU should financially protect its countries - Kudrin

ST. PETERSBURG. Sept 10 (Interfax) - The European Union countries should make common efforts to provide financial and economic protection to EU members experiencing problems, said Russian Finance Ministry Alexei Kudrin.

"The European Union should consolidate around salvation of its countries. Weakness and abandonment of some of them will pose additional risks," Kudrin said at a session of the Leontiev Center in St. Petersburg on Saturday.

"If this does not happen, this will entail another crisis," Kudrin said.

 

Kudrin: Russia In Talks With Cyprus To Provide Loan

ST. PETERSBURG, Russia -(Dow Jones)- Finance Minister Alexei Kudrin said Saturday that Russia is in talks with Cyprus to provide a loan.

Kudrin didn't confirm or deny that Cyprus has asked for a loan of up to EUR2.5 billion for up to five years, as newspapers in Cyprus reported Friday.

Asked whether Cyprus's economic situation is as bad as Greece's, he said, "nothing of the kind."

"Cyprus's economic situation is all right," he said, speaking at a meeting of Leontief Centre think tank.

 

Cyprus negotiating loan from Russia - Kudrin

ST PETERSBURG. Sept 10 (Interfax) - Russian Finance Minister Alexei Kudrin has confirmed that Russia is "in the process of negotiations on a loan for Cyprus."

Kudrin did not name the sum to be lent to the Mediterranean country.             

 

Russia to reduce domestic borrowing, needs no foreign loans this year– Kudrin.

ST. PETERSBURG, September 10 (Itar-Tass) —— Russia will reduce domestic borrowing and will need no foreign loans this year, Vice Prime Minister and Finance Minister Alexei Kudrin said.

“Initially, 1.7 trillion roubles worth of net borrowing were planned, i.e., the difference between the amount borrowed and the amount repaid, but it will be 1.4 trillion roubles,” the minister said on Saturday, September 10.

In the future, the government will stick to the “debt policy published on the Finance Ministry’s website”, he said.

Kudrin explained changes to the borrowing plans in 2011 by better budget indicators than was expected.

He said the federal budget might have no deficit this year and the reserve fund would “somewhat increase”, but the national welfare fund will not change.

“No accumulations to the national welfare fund will be made until the reserve fund is built up again,” he said.