Finance Ministry accommodated banks and provided OFZ premium to increase borrowings, but extended term – Siluanov

Raising premiums at placement of federal loan bonds (OFZ) in response to bank requests enabled higher borrowing volumes, but the term of borrowing was extended too, said Anton Siluanov, Russian Minister of Finance during VTB Capital's "RUSSIA CALLING!" investment forum.

"We are now borrowing to finance our expenses. We had risks of not raising this volume of funds for the budget. We talked to credit institutions, listened to their requirements and decided to pay larger premiums. But in this regard we extended the borrowing term, now we are trying to borrow for terms longer than 10 years, these are also very good figures", - he said.

"Overall, the latest auctions show that we are successful. On Wednesday we raised about RUB 430 bn on the market. It’s a good result", - he noted.

Yuri Soloviev, First Deputy Chairman of VTB, agreed that the Ministry of Finance is performing well on the domestic debt market. "You have managed to mobilize giant financial resources without hindering the curve or expanding spreads ", - he said.