Registration was successful!
Please follow the link from the email sent to

'Appetite for Russian Credit Market Rising:' Foreign Investors Rush to Buy Bonds

© Sputnik / Maksim Bogodvid / Go to the photo bankUS dollars and rubles inside a currency exchange office of a Sberbank
US dollars and rubles inside a currency exchange office of a Sberbank - Sputnik International
Subscribe
After two years of recession, Russia on the path to stabilization. The stance of foreign investors toward the country has also improved, with many of them rushing to buy Russian bonds, Austrian newspaper Die Presse wrote.

Demand for Russian Eurobonds exceeded $ 7.5 billion, with almost 200 foreign investors willing to buy them. Over the half of the bonds were bought by American investors.

"Appetite for Russian credit market has reached a level that we have not seen for a long time," representative of Citigroup in London Blazej Dankowski told the newspaper.

Experts argue that this is very positive development for Russia as for a long time the country's budget has been financed mainly from the two state funds, the Reserve Fund and the National Welfare Fund, which was actually designed for the financing of pensions.

According to Die Presse, Russia could actually borrow significant amount of money from other countries, because the country's obligations to external creditors make up only 15% of its GDP, which is quite a low figure. But the fear to become dependent on other states has always prevented Moscow from this step.

2015 St. Petersburg International Economic Forum (SPIEF). Day Three - Sputnik International
Smart Money Invests in Russia: Euroclear Gives Green Light to Russian Bonds
Now Russia has to look for other financing sources and plans to raise $7 billion in the international debt markets in 2017. The Ministry of Finance is also considering a partial pension reform and increasing duties on oil exports, initiatives that will serve as an additional source of income, the article noted.

According to several reports, after the two years of recession, Russia is currently on the path of stabilization, Die Presse noted.

Thus, the international rating agency S & P Global Ratings changed its outlook on Russia's long-term credit rating from "negative" to "stable."

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала