Russia expected lower borrowing costs by selling ruble bonds abroad, faced demands for an extra 60 to 70 basis points in yield compared with domestic debt, Deputy Finance Minister Dmitry Pankin said in St. Petersburg on Dec. 10, according to Bloomberg.
Thus Russia will attempt increased domestic bond sales of 200 billion rubles ($6.5 billion), the biggest monthly target since September and up from the 60 billion rubles planned.
“The market is completely unprepared now to take on an emerging-market issuer,” Pankin said.
Russia is stepping up borrowing to help cover a budget deficit that swelled to 911.5 billion rubles through November, or 2.2 percent of gross domestic product. The world’s biggest energy supplier posted a deficit of 5.9 percent of GDP last year, its first since 1999, and estimates this year’s gap will narrow to 4.6 percent.
No comments:
Post a Comment