The government allowed the "reliable" regions to occupy from foreigners

The regions of the Russian Federation with a high credit rating will be able to occupy abroad. About this, as reports the Prime Agency, said the First Deputy Prime Minister of the Russian Federation Igor Shuvalov. The day before, Dmitry Medvedev approved the requirements for the minimum level of credit ratings of the regions to attract borrowing. We are talking about both direct loans in foreign banks, and the placement of securities in foreign currency.

"According to the criteria that we are spelled out in the budget legislation, if the subject of the Russian Federation is responsible for these criteria and is going to enter foreign markets, he will need to get a rating from two international rating agencies, which should not be lower than the sovereign rating of the Russian Federation," Shuvalov said at the meeting Dmitry Medvedev, commenting on the requirements approved by the head of the government.

If necessary, after 3-4 years, the requirements can be changed depending on how such an order will work. For this, the Ministry of Finance, which initiated a new procedure for borrowing in foreign markets for regions, will "monitor the situation".

So far, only Moscow and St. Petersburg are responsible for the criteria to resort to external borrowings, according to the First Deputy Prime Minister. Potentially, five regions can have such an opportunity.

So, the Khanty -Mansi Autonomous Okrug - Ugra has the desired rating from Fitch and S&P ("BB" with a stable forecast). However, as explained to the agency in the Ministry of Finance, the Ministry considers the region not corresponding to the criteria of the resolution, since its rating from Moody's below the sovereign by two steps ("BAA3" against "VAA1").

Recall that Moscow introduced restrictions on external borrowing for the regions in 2000, when the volume of their external debts reached $ 2.43 (1.4 % of GDP). This was recognized as a critical value. On August 8, 2000, an appropriate moratorium was introduced, which operated until January 1, 2011. After that, the issue was left at the discretion of the government.

With the help of the federal budget, the debts of the regions were repaid almost completely. By the end of the moratorium period, the accumulated external debt of the constituent entities of the Russian Federation decreased to 1.06 billion dollars (0.1 % of GDP), and at the beginning of 2013 amounted to $ 0.56 billion (0.03 % of GDP).

Formally, external borrowings for regional budgets have been allowed since 2014, however, as follows from the new rules, they are still inaccessible to most of them.

It is not worth expecting a quick access to foreign markets from the regions, Alexander Proclov, vice president of Moody in Russia, told RBC to RBC. These regions, according to the expert, "are still quite successfully working on the domestic market," they have no urgent need to occupy in foreign markets, but there are a "number of problems with the need to introduce by -laws."

However, if Moscow and the Northern capital still decide to take abroad, there will be demand for the papers of these regions on the Eurobond market, the analyst of VTB Capital Maxim Korovin explained to reporters.

Last week at the Gaidar Forum, the head of the Ministry of Finance Anton Siluanov said that the regional budget deficit during 2013 has more than doubled and amounted to 700 billion rubles, recalls an independent newspaper .

The deficit was covered due to the remains accumulated by the regions in previous years. In 2014, according to the minister, "there will be no such possibility of using this resource." Unlike the federal budget, regional budgets do not have its own airbag in the form of reserve funds.

The issue of sustainability of regional economies is becoming more acute, so Siluanov warned about the need to "revise priorities and give more rights to regions in the management of expenses."

However, as the general director of the Finiesxpertiza, Agnvan Mikaelyan, told the newspaper, if the regions are borrowed to cover budget holes, "then this will be a dead end." Then, the expert warns, the debt burden will lead to the bankruptcy of the regions and will become a serious risk to the country's economy.