Finance Ministry to Borrow from Russians Through Bonds

28 February 2017 (13:03)

UrBC, Moscow, February 28, 2017. Russia’s Finance Ministry is planning to go through with a bond issue aimed at private customers this year, with face value at 1,000 RUR per bond, Rossiyskaya Gazeta refers to a draft bill carried by the ministry as stating.

The idea is to make it easier for Russians to invest in state bonds and to come up with a special, reduced-risk and easier-to-buy federal bond issue. Under the terms of the bond issue and circulation, these are not meant to be resold; however, the holders will be able to get their money back any time before the redemption deadline at no extra cost and no penalty, the draft bill states.

An investor will be able to keep the profits resulting from the bond ownership as long as they have had these bonds for at least twelve months. This is therefore a financial mechanism that is meant to stimulate people’s medium-term investments, the Finance Ministry states. The circulation period comes to one to five years.

The Ministry is planning to issue some 20bn to 30bn RUR worth of popular bonds every year.

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