The Ministry of Finance doesn’t plan to use the profits of the Russia’s Central Bank to cover budget holes, reported Reuters citing the Finance Minister Anton Siluanov.
This year, Russian authorities passed a law obliging the Bank of Russia to send 90 per cent of 2015-profit to the budget. In the previous year, the situation was the same. According to the report, in 2015 the Central Bank made profit of RUB 112.6 billion.
- We acknowledge that the situation with the budget will be tight, I would say that probably one of the most difficult in recent years since we simply won’t have a number of profitable positions we had this year, such as, for example, the profits of the Central Bank or proceeds from the privatization of Rosneft, Siluanov told a news conference.
Speaking at the St. Petersburg International Economic Forum, Siluanov promised to reduce the budget deficit and carefully carry out lending activities on the domestic market, the volume of which is on rise in 2017-2019.
The Head of the Bank of Russia Elvira Nabiullina warned that Russia risks to slide in a debt pit.
In January-May, the deficit in Russia’s federal budget amounted to 4.6% of GDP.