Germany sold Russian debts in the amount of 5 billion euros

Germany sells public bonds to private individuals for Russian debts in the amount of 5 billion euros, the Ministry of Finance of Germany said on Friday. According to the financial department, the "transaction is completed", while "demand exceeded the proposal."

Sale is carried out in three tranches with volume, respectively, 2 billion, 1 billion and another 2 billion euros, ITAR-TASS reports.

Berlin resorted to the innovative scheme is not from a good life. The Germany has been violating the "economic constitution" of the EU - a pact of stability and growth for the third year in a row. In 2004, the German budget deficit will again exceed 3% of GDP, which is prohibited by a package of stability. Debt payments come from Russia every six months, and funds from the placement of bonds "will be included in the budget of Germany this year as" privatization income. "

The debt of Russia is decorated in the form of 3-, 5- and 10-year credit notes nominated in dollars and euros and tied to Russian debt payments in favor of Germany.

According to experts, Russian debts of Germany are 14 billion euros.

The sale of Russian debt to private individuals does not threaten Russia

The sale of part of Russian debt to private individuals does not pose any danger to Russia, the scientific director of the Higher School of Economics Yevgeny Yasin said on the air of the Echo of Moscow radio station.

"It is known that Russia has a rather significant external debt, including the state, and Germany is our largest creditor," he said. “In recent years, Russia's external debt has been significantly reduced, and we now have the relationship of the amount of external debt to the volume of GDP about 35-40%, while, say, in 1998 this ratio was more than 70%,” Yasin noted. “Today, the amount of debt is not a danger.”

“In this case, the German government solves its problem, tries to find the funds that he needs today to implement his social reforms, which are very relevant for Germany,” he remarked.

“Of course, it’s more convenient to deal with a large lender, since you can negotiate at the level of heads of state and governments, but private individuals are also quite acceptable,” Yasin added.