Debt service: 25% of Russia-issued loans could be “problem” loans / Izvestia.Ru
Delinquency on government loans issued by Russia to other countries could reach 25 percent this year, according to the draft changes to the public finance management program (Izvestia has a copy). The Ministry of Finance has been instructed to cut this number in coming years, and, according to the document, reducing the number of “bad debts” is a new target for the agency. By 2023, the percentage of overdue interstate loans should fall to 23 percent. Many bilateral loan agreements used to be concluded with a low level of “legal hygiene”, experts said. The Ministry of Finance said it is restructuring the poorest countries’ debts, and “some changes in the payment schedule” are possible due to the pandemic.
Andrey Gusev, Managing Partner at Borenius Russia, shared his opinion with Izvestia on what important points should be taken into account in interstate loan agreements.