RIA NOVOSTI. The Finance Ministry of the Russian Federation plans to issue government securities with par value of Rub 869.3 bln in 2010, the government’s press service reported.
The presidium of the Russian government will review on Tuesday a draft order, prepared by the finance ministry, on the amount of government securities to be issued in 2010. Up to Rub 343.6 bln will be earmarked from the planned borrowings to keep the federal budget balanced, up to Rub 250 bln will be allocated to inject additional capital into lending institutions using the mechanism for swapping federal loan bonds for prefs and up to Rub 275.7 bln will be spent to repay state obligations.
Proceeding from the average placement price (98% of par value), the Russian finance ministry plans to issue federal loan bonds for up to Rub 695.3 bln in 2010 and government savings bonds worth up to Rub 174 bln.
“To maintain the reasonable temporary structure of sovereign debt the finance ministry plans that domestic borrowings in 2010 will be to a large extent mid- and long-term (up to 90% of the scheduled amount of domestic borrowings)," said a statement.
So, in 2010 the finance ministry will continue placement of government bonds with a standard maturity of 3 and 5 years in a bid to maintain liquidity on the market. In addition, the amount of 3- and 5-year federal loan bonds in circulation will be bumped up to Rub 50—55 bln for the issue within 2010. Furthermore, the finance ministry does not rule out that new federal loan bonds with 10-year maturity will be placed in 2010. However, there is a condition such placements are possible if the macroeconomic environment improves next year. The plan is to increase the amount of 10-year bonds in circulation to Rub 90—100 bln each.
