The possible depletion of the Reserve Fund of Russia in 2017 could push the Agency to downgrade the sovereign ratings of the country. This was stated by an analyst of Raiffeisen Bank international Gintaras Seljuks, said on Thursday, July 7, Rambler News Service.
According to experts, the ratings could fall by one notch. However, Raiffeisen is still recommended to keep Russian Eurobonds. They are now traded as securities investment grade, due to the shortage of supply and excess liquidity in the market, but they have a garbage rating
July 6, Deputy Finance Minister Sergei Storchak admitted that the Reserve Fund may be exhausted in 2017. For further financing the budget deficit the government will have to spend 40 percent of the national welfare Fund (NWF) and to increase borrowing on the domestic market several times.
According to the published in early may, the forecast of socio-economic development of Russia for the next four years, the Ministry of economic development admits that by the end of 2019 can be exhausted and the Reserve Fund and national welfare Fund.
Reserve Fund (2.46 trillion roubles and the national welfare Fund (to 4.68 trillion) are part of the international reserves of the country. Their total volume is 395,1 billion dollars (information of the Central Bank on June 24), or 25.5 trillion rubles at the current exchange rate.
