‘As is well known, we’ve been faced with an adverse budget this year. The deficit can be compensated in two ways: through an increase in profits or through taking out loans and giving out guarantees. We can also issue bonds and securities. However, when one comes to analyze the banks’ interest rates, it becomes obvious that this rate comes to 15% to 18% a year, whereas bonds an be issued at a smaller interest and the assets can be managed more easily into the bargain,’ Governor of Sverdlovsk Region Alexander Misharin says.

‘We have issued nearly 10 billion RUR worth of guarantees so far. As for our budget balance, it looks good: the budget deficit only comes to no more than 10% of revenues, whereas the upper permissible limit comes to 50% to 60%. This means we are a long way from facing the problems that are typical of big European countries and some parts of Russia,’ the Governor notes.

According to Alexander Misharin, the bonded loan operator will be either Troika Dialog or Renaissance, whose interest rates come to no more than 10% to 11%.