Russia may become net borrower since 2018

Baku. 28 July. REPORT.AZ/ Russia, traditionally acting as a creditor, may turn into a net borrower since 2018, Report informs citing RBK Agency, experts of the Analytical Credit Rating Agency (ACRA) have spread such information. The ACRA's report says, if the budget reserves of Russia allow it to become a net creditor, its spending the funds of the Reserves Fund and preference to finance the budget deficit for a long term will turn it into a borrower.

ACRA experts justify this with the decrease of the dynamics of Russia's creditor stance. Thus, as of January 1, 2017, the net creditor rate reached the minimal level of 10 years and was equal to 1,1 trillion rubles ($ 18,4 billion). Notably, as of January 1, 2015, this indicator was 5,7 trillion rubles ($ 84 billion). To support the economy, the Russian government increased the expenses from the budget, and it led to the weaking of Russia's creditor stance. ACRA notes that even in 2011-2014, when the oil prices were high, the Russian government did not collect the currency reserves. In 2014, they started to use the currency reserves to cover up the budget deficit.

Head of ACRA's Research and Forecast Group Natalia Prokhorova reckons that in 2018, Russia's credit position will turn negative and make 1 % of the collected assets. According to the agency, Russia will keep the status of a net borrower for two years. The harsh budget policy will help it become a net creditor again. Currently, the reserves, which are equal to 4% of the GDP, will reach 6% by 2020.