Russia's Finance Ministry prefers domestic loans

Russian government borrowing policies will make an accent on domestic loans next year into 2005, Finance Ministry PR said to RIA Novosti on the eve of a Cabinet session which will debate draft programmes for federal domestic and foreign loans in 2003.

The ministry intends to issue domestic bonds to an approximate 170 billion roubles within the year--roughly, US$6 billion, with bond payments at R110 to 120 billion.

Foreign loans are to see a 25% cut against this year. Russia intends to borrow $1.68 billion from other countries' governments, banks and companies with federal guarantees--against this year's 2.4 billion.

Eurobond issuance will amount to a billion dollars, foreign target credits to $640 million, and an IBRD loan to promote budgetary federalism and regional financial affairs to $40 million, say blueprints.