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Ministry of Finance proposed to prohibit investing money from the National Welfare Fund in external public debt KXan 36 Daily News

Date: March 27, 2023 Time: 14:14:32

The document proposes suspending by 2023 one of the clauses of the 2008 government decree on the procedure for investing NWF funds.

It is precisely in it that we are talking about the possibility of investing from the NWF in the debt obligations of foreign states, the debt obligations of foreign government agencies and central banks, as well as the debt obligations of international financial organizations, including securities .

The explanatory note to the draft resolution states that in 2023, NWF funds can be invested in foreign currency and also, in fact, only in various types of domestic financial assets, including assets related to the financing of infrastructure projects.

The resolution project of the Ministry of Finance was proposed in relation to the recently signed and already in force law of reforms to the Budgetary Code.

This document, among other things, suspends until 2024 a series of regulations of the Budget Code relating to the investments of the NWF. Thus, the bar of 7% of GDP is temporarily canceled, after which it is possible to start investing from the liquid part of the NWF in self-sustaining infrastructure projects, as well as make other investments of the fund.

In addition, according to the new law, in 2023 the Federal Treasury will be able to provide loans to regions for up to 15 years at a rate of 3% per annum with the right to early repayment at the expense of temporarily free federal budget funds. (now there are infrastructure loans at that rate, but with a term starting at 15 years).

The total amount of treasury loans this year will be up to 250 billion rubles. The regions will have to spend this money on the implementation of infrastructure projects with high socioeconomic efficiency.

Hansen Taylor
Hansen Taylor
Hansen Taylor is a full-time editor for ePrimefeed covering sports and movie news.

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