Regions will be able to get cheap loans at Sberbank, VTB and Russian Agricultural Bank - Anton Siluanov

The Ministry of Finance RF has agreed to allocate to regions of the country low-cost loans at Sberbank, VTB and Russian Agricultural Bank. This was discussed at a meeting with Prime Minister Dmitry Medvedev devoted to providing balance of the consolidated regional budgets, RBC cites the Russian Finance Minister Anton Siluanov.

According to Siluanov, large state-controlled banks are ready to grant regions credit facilities at an interest rate not exceeding the rate of the Bank of Russia plus 1.25 percent per annum. He also noted that at the meeting of the Government of the Russian Federation the Ministry of Finance would propose to increase budget loans to refinance expensive loans previously obtained by regions.

In turn, the head of the Government noted the difficult financial situation in the country’s regions.

“Deficit of regional budgets nearly doubled compared to 2012, amounting to almost 650 billion rubles. State and municipal debts rose almost by one quarter, and in some regions of the Federation debts exceeded 80 percent or more of all tax and non-tax revenues of the regional treasury,” the edition cites the premier.

According to the Ministry of Finance of Bashkortostan, the state debt of the republic in 2013 grew by 43.5 percent and as of January 1, 2014 amounted to 21.1 percent of tax and non-tax revenues of the budget, or 19.8 billion rubles. In the first quarter of the year the state debt reduced by 2.9 billion rubles and now stands at about 17 billion rubles.