MOSCOW: Russia has
created an anti-crisis reserve fund for 2015 that will reach 190 billion rubles
(around $3.6 billion), a figure that could rise even further as the year
progresses, Finance Minister Anton Siluanov announced Friday.
Siluanov predicted a
budget deficit of just over 3 percent in 2015, in the event the economy should
contract by 4 percent.
He also acknowledged
that the finance ministry will submit a proposal to the Duma to trim the budget
by 10 percent, even though he is aware that will not be sufficient to bring
down the deficit.
As for the ruble,
Siluanov forecast that the national currency would strengthen in the first
quarter and predicted a rate of 51 rubles per dollar in 2015.
The Russian minister
added that ruble has now stabilised with oil prices reaching $60 per barrel;
however he noted that ruble will not reach the rate of $30 again, insisting
that stability of the Russian currency is what matters.
Siluanov made it clear
the government does not rule out intervening in the domestic foreign exchange
market with foreign currency purchases if that is necessary to strengthen the
ruble, as it did recently, when it sold off $1 billion of its holdings.
Meanwhile, the
government expects oil prices to stabilise at $60 per barrel, which will lead
the Russian economy into recession, since exports of oil and gas account for
half of the country's Gross Domestic Product.
The Russian budget for
2014 was calculated on the basis of oil being priced at $96 per barrel and an
exchange rate of 37.5 rubles per dollar.
The ministry of
finance is therefore hoping to balance its 2017 budget based the assumption
that by then oil will be fetching $70 per barrel.
(Πηγή: economictimes.indiatimes.com)
