The Finance Ministry proposes to deprive the weak regions the right to take loans. The Department believes that this will allow for more control over their debts.
Lose the right to raise loans can regions with the highest risk debt sustainability. Accordingly, the actual debt of such entities will also increase. For this purpose, the Ministry of Finance intend to introduce a system of control of the debt and divide the regions into groups according to debt sustainability. By 2019, the regions will be divided into three matching groups, according to news Agency “SeverInform” citing TASS.
It is anticipated that such tight state control will cause regions to seriously cut spending.
