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Economy/Business
22 September , 16:49

Russian government has expanded regions possibilities as part of budget loans restructuring

The regions will be able to use the funds released as part of the restructuring of debt on budget loans for the construction or reconstruction of infrastructure facilities, as well as for connecting buildings and structures to engineering networks necessary for the implementation of investment projects. The resolution on this was signed by the Prime Minister of the Government of the Russian Federation.

The basis for this decision was the new norms of the Budget Code. According to them, in 2022, the regions were exempted from paying off restructured debt on budget loans. These payments have been carried over to 2025 and 2029, subject to the current payment schedule. At the same time, the government can completely write off the debt if the regional authorities have managed to implement an important infrastructure or investment project.

The restructuring of budget loans is carried out within the framework of agreements that the subjects enter into with the Ministry of Finance of the Russian Federation. Such agreements oblige the regions to adhere to obligations on improving their finances and reducing their debt burden.

Budget loans are issued for specific projects that have passed the examination, at a rate of no more than 3% per annum and with a maturity of up to 15 years.

Thus, in 2021, the republic received a budget loan of 14.8 billion rubles for the development of infrastructure. These funds have been used to build a school in Ufa in the Kuznetsovsky Zaton for 2200 children, the reconstruction of Pugachev Street is being carried out, construction of General Rylenko street and a transport interchange at their intersection, the construction of the Southern bypass of Ufa with a bridge over the Belaya River, the purchase of buses for new micro districts, where it is planned to commission more than 5.7 million square meters of housing and create about 20 thousand jobs; in Neftekamsk — reconstruction of treatment facilities and construction of a pumping station for the sewage system.

For 2022, the volume of concessional budget loans amounted to 6.4 billion rubles. These are funds to continue the implementation of large-scale projects.

Translated by:Tatyana Aksyutina
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