Russia eyes borrowing $1 bln a week on domestic market in 2021

MOSCOW, Dec 29 (Reuters) – Russia will need to raise around 75 billion roubles ($1.02 billion) every week by auctioning OFZ treasury bonds to fulfil its 2021 borrowing plan, Finance Minister Anton Siluanov said.

Running out of options to bolster public finances, Russia has more than doubled its domestic borrowing in 2020, raising nearly 5.3 trillion roubles by selling OFZ treasury bonds on the domestic market in 2020.

“Next year, we will need to borrow around 3.7 trillion roubles,” Siluanov told reporters in comments cleared for publication on Tuesday, confirming the 2021 borrowing plan.

“(This means) 75 billion roubles a week, quite doable.”

OFZ bonds are popular among foreign investors for their lucrative yields although Russian banks became the main buyers of such debt in the past few months, helping Russia to plug holes in the budget.

Russia also plans to scale down its state support of the economy next year as the cost of servicing burgeoning state debt rises from the impact of the COVID-19 pandemic and the collapse of oil prices, Siluanov said. ($1 = 73.7030 roubles) (Reporting by Darya Korsunskaya; Writing by Andrey Ostroukh; Editing by Jacqueline Wong)