Russia practically freed from government debt

September 10, 2019, it became known that the net public debt of Russia went into the negative zone, i.e. dropped below zero. This suggests that what has been done in the macroeconomics of Russia over the past five years (from 2014-2019) can already be safely entered into the corresponding textbooks.

So, the agency RBC, referring to the data of the Ministry of Finance of Russia and the Central Bank, reports that the public debt of Russia, in a broad sense, i.e. the internal and external debts of the federal government, the debts of the regions and municipalities, have become less than the liquid assets of the “expanded government” (federal authorities, regions and extrabudgetary state funds). This indicates that if Russia is "suddenly urgent", i.e. “Literally tomorrow”, if you need to pay off your debts, it can be done calmly at the expense of deposits of government agencies in the Central Bank and commercial banks, without involving other sources.

In simple terms, the Russian state now has more assets than debts, and Russia can pay off its obligations if necessary, at any time. Naturally, no one will make sharp “gestures” on this matter and the repayment of obligations takes place according to previously approved schedules.

As specified, as of August 1, 2019, the net assets of the “expanded government” (deposits minus debt obligations) amounted to 1,25% of the GDP projected by the Ministry of Economic Development of Russia for this year. For clarity, as of January 1, 2019, public debt (broadly understood) exceeded state assets by 1,5% of GDP.

Russia practically freed from government debt

It should be noted that this became possible due to the growth of reserves, which affects the development of Russia as a whole. Although for the first half of 2019, Russia's GDP increased by only 0,7% in annual terms, compared with the previous year. So no wonder many Western economic Analysts believe (as an example, Christopher Dembik of Saxo Bank) that Russia has become more resilient to external economic risks.
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  1. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 10 September 2019 11: 06
    Yes, but they wrote that the foreign debts of state organizations, etc., have grown over the same time ... Alas.
  2. Dzafdet Offline Dzafdet
    Dzafdet (Sergei) 10 September 2019 15: 40
    But the whole people were driven into poverty ...
    1. Natan bruk Offline Natan bruk
      Natan bruk (Natan Bruk) 10 September 2019 18: 31
      I remember that at one time Romania completely paid its external debts (at the expense of the people, of course). Shortly afterwards, what happened happened with Ceausescu ...
  3. Digital error Offline Digital error
    Digital error (Eugene) 10 September 2019 22: 00
    ... many Western economic analysts believe that Russia has become more resilient to external economic risks.

    ... which entails an increase in credit rating.
    Did you save money on pensioners and are preparing to borrow on a large scale, as in the early 90s?