Ministry of Finance of the Russian Federation
Ministry of Finance of the Russian Federation
10.10.2011

Statements of Acting Finance Minister of the Russian Federation A. Siluanov

 

Russian state debt expected at under 11% of GDP by yr-end - Siluanov

MOSCOW. Oct 10 (Interfax) - The situation involving state and corporate debt is stronger than in 2008, and state debts are expected to amount to less than 11% of GDP this year, acting Russian Finance Minister Anton Siluanov said during an address to the Federation Council on Monday.

State debt could grow to a little over 13% of GDP in 2012, Siluanov said. "That is not much compared to European countries," he said.

"Much indicates that Russia's foreign debt is not great, but there is a large amount of corporate foreign debt," he said. Corporate foreign debt, he said, is a bit over $470 billion, or roughly 28% of GDP.

"But I want to say that the current situation differs from the 2008 situation for the better, since the size of active operations and the amount of funds raised by commercial organizations that have foreign debt is at the present time roughly the same, where in 2008 the volume of raised funds was much greater that the volume of active operations that commercial organizations accumulated outside Russia," Siluanov said.

"That's why we think, even in the event that the most negative forecast from the standpoint of capital outflow comes about, that there will not be the same kind of situation as developed in 2008," the acting finance minister said.

As to the overall size of aggregate foreign debt, Siluanov noted that it is a little over 30% of GDP. "That is not so much, really," he said.

 

Russian 2012 budget will be balanced without topping off Reserve Fund if oil $93/barrel - Siluanov

MOSCOW. Oct 10 (Interfax) - Russia's 2012 federal budget will be balanced, not counting Reserve Fund padding, if oil is at $93 per barrel, acting Finance Minister Anton Siluanov said during an address to the Federation Council on Monday.

"The price for a balanced budget without growing the Reserve Fund is $93 per barrel. Anything above that will go to increasing our reserves," Siluanov said.

Factoring in additions to the Reserve Fund, Russia's 2012 budget will be balanced if oil costs $117.2 per barrel, where the price is $108 in 2011, he said.

If the price of oil is lower than expected for a balanced budget, there might be two ways to implement the budget: using Reserve Fund remnants transferred from 2011 to 2012, or optimizing spending, Siluanov said.

The Reserve Fund is expected to amount to 1.673 trillion rubles at the end of this year. According to the draft federal budgets for 2012-2014, the Fund is expected to expand by 512 billion rubles, he said.

"If the price of oil goes down, then growing [the Reserve Fund] will not happen," Siluanov said.

The National Welfare Fund will reach 2.604 trillion rubles by the end of this year, representing 4.9% of GDP, the acting finance minister said. By the end of 2014, it will have increased a bit due to exchange-rate revaluation, and there will be some insubstantial use of its funds for pension co-financing, he said.

 

Russian budget deficit will be 2.5% of GDP if oil at $90, 5.4% if $60 - Siluanov

MOSCOW. Oct 10 (Interfax) - Russia will have a federal budget deficit of 2.5% of GDP if oil is at $90 per barrel, or 5.4% if it is at $60, acting Finance Minister Anton Siluanov has told reporters.

"We have done a stress forecast, with oil at $60 per barrel the deficit will be 5.4% of GDP," Siluanov said. "With oil at $90 per barrel it will be about 2.5% of GDP," he said.

The draft budget reckons oil at $100 per barrel in 2012, $97 in 2013, and $101 in 2014, he noted.

"If the price of oil will be at the $60-per-barrel level, then our budget deficit will be roughly 5.4% of GDP. We cannot increase the amount of funds arriving in the Reserve Fund, we will spend the Reserve Fund. That will be a situation difficult for budgetary balance," Siluanov said.

If oil is at that price, the possibility of optimizing budgetary spending will be considered, the acting finance minister said. "If such a situation comes about, then we will work realistically on the budget," he said.

The Finance Ministry expects a zero federal budget deficit in 2011, Siluanov said. "We expect that with a great degree of likelihood the budget will be balanced," he said.

 

Russian official: No plans to increase domestic, foreign debt soon

MOSCOW, Oct 10 (PRIME) -- The Russian government does not plan to increase foreign and domestic borrowings in the near future amid the current difficulties on foreign markets, acting Finance Minister Anton Siluanov said Monday.

Siluanov said that it would be difficult to attract funds from foreign markets taking into account their current situation.

Commenting on the possibility of making domestic borrowings, Siluanov said that the government should conduct the policy that would allow the Russian authorities not to attract funds from the domestic market and have enough money to invest into the country’s economy.

Siluanov said that federal government’s debt would be less than 11% of the country’s gross domestic product (GDP) as of late 2011 and about 13% of GDP in 2012. Corporate debt is expected at about 28% of GDP, or around U.S. $470 billion, Siluanov also said without providing comparisons.

Earlier, the Central Bank of Russia (CBR) said that Russia’s foreign debt increased 4.6% in 2010 to $488.940 billion as of January 1.

 

Russia’s fedl road fund to invest 212 bln rbl in roads in 2012

MOSCOW, Oct 10 (PRIME) -- Russia’s federal road fund plans to allocate 212.3 billion rubles in building and repairing roads in 2012, Anton Siluanov, acting finance minister, said Monday.

Siluanov also said that in 2013, the fund is expected to allocate 230.0 billion rubles in building and repairing roads, while in 2014 it is expected to allocate 235.0 billion rubles.

The federal budget is expected to allocate 6.0 billion rubles in 2012; 7.0 billion rubles in 2013; and 7.4 billion rubles in 2014 to finance the federal program for building roads in rural localities, Siluanov said.

In addition to the federal road fund, Russian regional governments are to create local road funds starting from 2012, Siluanov said.

 

Finance Ministry may cut domestic borrowing in 2012 if economic situation good

MOSCOW. Oct 10 (Interfax) - The Russian Finance Ministry may, if the outside economic situation is favorable, reduce its borrowing at home next year, acting Finance Ministry Anton Siluanov said during an address to the Federation Council on Monday.

The planned level "of net financing" for the budget deficit in 2012 is 1.346 trillion rubles, Siluanov said.

For that, he said, the plan is to borrow 1.800 trillion rubles on the domestic market and pay off 600 billion rubles, the net result of which would be the raising of 1.2 trillion rubles. The foreign market borrowing plan is for raising 210 billion rubles and paying off 72.6 billion rubles.

"In fact, of course, we will be looking at the situation, because a large amount of borrowing on the domestic market puts certain risks in play that we might eliminate the liquidity that is building up on the market via the budget, and there will be fewer funds at financial institutions to put into the economy," Siluanov said.

By way of example, Siluanov pointed out that this year the Finance Ministry, having received additional budget revenues, did not raise some planned funds, "so as to support the situation on the money market and provide liquidity in the economy," he said. "So, if we have a favorable situation next year, then maybe we will adjust the volume of borrowing on the domestic market," he said.

 

Russian regional consolidated budget deficit will be about 50 bln rubles in 2012 - ministry

MOSCOW. Oct 10 (Interfax) - The consolidated budget of Russia's constituent regions next year will remain about 50 billion rubles next year as for this year, acting Russian Finance Minister Anton Siluanov said during an address to the Federation Council on Monday.

"We expect a general improvement in budget system balance next year," Siluanov said.

Consolidated regional budget revenues in 2012 are expected to be 7.682 trillion rubles (up 5.8% from 2011), spending - 7.730 trillion rubles (about the same increase), Siluanov said.

The overall regional consolidated budget deficit in 2012 will be about 50 billion rubles versus 100 billion rubles in 2010 and about 50 billion rubles expected for this year.

 

Deficit of Russian regions’ consolidated budgets to be at RUB 50 bln in 2012.

MOSCOW, October 10 (Itar-Tass) —— Deficit of the consolidated budgets of the Russian regions will be at about 50 billion roubles (USD 1 = RUB 32.01) in 2012, Acting Finance Minister Anton Siluanov said during parliamentary hearings in the Federation Council, upper house of the Russian parliament, on Monday.

In his words, the budget system is expected to be more balanced in 2012. Next year, incomes in the consolidated budgets of the regions will reach 7,682 billion roubles, which will be 5.8 percent more than in the current year, Siluanov said.

Besides, the growth of expenditures will be the same and will reach 7,729.5 billion roubles, the acting minister said.

Therefore, the total deficit is expected will be at about 50 billion roubles, as compared to 100 billion roubles in 2010, Siluanov said.

“This year’s deficit of the regions’ budgets will be at the level of 50 billion roubles,” he said.

 

RF 2012 budget to be balances at oil price $93 per barrel- view.

MOSCOW, October 10 (Itar-Tass) — Without replenishment of the Reserve Fund Russia’s 2012 budget 2012 will be balanced with the price of oil of $93 dollars a barrel, Acting Finance Minister Anton Siluanov said at parliamentary hearings.

“The price of the balance is $93 per barrel on the condition of not replenishing the Reserve Fund,” he said.

According to Siluanov, “all that is above” will be used to increase the national reserves in case of oil price fluctuations. If the average annual price is lower then, in his opinion, there are two ways: “We can take the remainder of Reserve Fund that will move from the current year to 2012, and will make decisions on cost optimisation.”

The acting finance minister said that the estimated amount of the Reserve Fund in 2011 will be 1 trillion and 673 billion roubles, and next year it is planned to be increased by 512 billion roubles. However, is oil prices are low, Siluanov said, it will not happen.

Before the crisis, in 2008, the Reserve Fund’s volume stood at about 4 trillion roubles, “we will be able to reach” such a volume only by 2014, he said.

The Reserve Fund is a part of the federal budget assets. The Reserve Fund is dedicated to ensure financing of the federal budget expenses and maintaining federal budget balance in case oil and gas budget revenues decline.

The Reserve Fund contributes to stability of the Russian Federation economic development by means of reducing inflationary pressure and insulating national economy from volatility of earnings generated by export of non-renewable natural resources.

Actually the Reserve fund substituted the Stabilisation Fund of the Russian Federation. However in contrast to Stabilization fund the Reserve fund accumulates not only federal budget revenues from production and export of oil, but also revenues from production and export of natural gas and oil products. Maximum size of the Reserve fund is limited to 10 percent of the Russian Federation GDP forecasted for the corresponding fiscal year. Reserve Fund’s assets may be applied to finance oil and gas transfer to ensure balance of federal budget and for early foreign national debt repayment. Reserve Fund’s assets are applied to finance the oil and gas transfer without amending the federal law for the corresponding fiscal year and the planning period in case oil and gas revenues of the federal budget earned during the corresponding fiscal year are deficient for these purposes. The maximum amount of Reserve Fund’s assets to be used to finance oil and gas transfer is approved by the federal budget law for the corresponding fiscal year and planning period. Use of Reserve Fund’s assets to finance the oil and gas transfer in periods of adverse market conditions allows to conduct balanced budget policy and contributes to stability of the social and economic development of the country, insulating it from volatility of global commodity markets.

 

Russia to balance 2012 budget with oil at $93/bbl

RosBusinessConsulting.

Russia's 2012 budget will remain balanced with oil prices at $93 per barrel, but only if the government stops transferring oil revenues to the Reserve Fund, acting finance minister Anton Siluanov said. The government does not rule out expanding the Reserve Fund, which serves as a shield against oil price fluctuations, using extra revenue from higher oil prices. "If the average annual price falls below $93/bbl, we may tap funds accumulated in the Reserve Fund to keep the budget balanced," Siluanov noted, adding that these calculations would be factored into the 2012 budget.