Bloomberg News

Russia Will Continue With Ruble Debt Sales, Storchak Says

October 27, 2011

(adds auction details, comment from third paragraph.)

Oct. 27 (Bloomberg) -- Russia will continue offering domestic ruble debt this year if the market provides attractive conditions, Deputy Finance Minister Sergei Storchak said.

“We would absolutely like to remain on the domestic market until the end of the year and follow our OFZ auction schedule,” Storchak said in a telephone interview in Moscow late yesterday. “Everything will depend on the specific market situation on the auction day, but we don’t want to leave the market.”

Russia sold its first domestic debt after a six-week absence yesterday, paying the highest yield in at least a year on 9.7 billion rubles in debt due June 2015. Prime Minister Vladimir Putin said Oct. 6 that Russia would stop selling the bonds to leave more cash available to companies.

“We guessed right, and were very pleased with the results,” Storchak said after the auction yesterday. “The high demand we saw is a good sign. It mean banks have resources and they’re prepared to risk them, to take on the risk we’re offering.”

The government, which initially forecast a budget deficit of more than 3 percent of gross domestic product, has run a surplus totaling about 1.1 trillion rubles, or 2.8 percent of GDP, through September.

--With assistance from Alex Nicholson in Moscow. Editors: Alex Nicholson, Torrey Clark

To contact the reporters on this story: Alena Chechel in Moscow at achechel@bloomberg.net; Scott Rose in Moscow at rrose10@bloomberg.net

To contact the editor responsible for this story: Alex Nicholson at anicholson6@bloomberg.net


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