Template-Type: ReDIF-Article 1.0
Author-Name: Igor V. Belyakov
Author-Email: igor.belyakov@eeg.ru
Author-Workplace-Name: Economic Expert Group, Moscow 109012, Russia; Financial Research Institute, Moscow 127006, Russia
Title: Prospects of Demand for Russia’s Ruble-Denominated Debt
Abstract: The paper is focused on the analysis of the ruble-denominated debt of the Russian Federation in order to evaluate opportunities for federal budget deficit financing at the required level of 1,0–1,2 % GDP per year in 2017–2019 (in terms of net borrowing). Chosen approach helps to review and characterize the investor base of the ruble-denominated public debt in Russia and evaluate the prospects for the demand growth in each of the main investor groups on the basis of statistical comparisons and qualitative conclusions. The investor base of Russia’s ruble-denominated public debt consists mainly of Russian commercial banks, non-residents and institutional investors. The analysis shows that demand of the banks is restricted due to the complex and controversial tendencies in the banking sector; the demand of the institutional investors is limited due to the consequences of the pension system reform. Therefore, it is probably that OFZ bond pricing incentives and non-market debt placement could be used for the complete implementation of the government’s borrowing program.
Classification-JEL: H61, H70, H71
Keywords: public debt, funding sources, OFZ, demand generation, investor base, institutional investors
Journal: Finansovyj žhurnal — Financial Journal
Pages: 39-51
Issue: 1
Year: 2017
Month: February
File-URL: http://www.nifi.ru/images/FILES/Journal/Archive/2017/1/statii_1/fm_2017_1_03.pdf
File-Format: Application/pdf
Handle: RePEc:fru:finjrn:170103:p:39-51