The RF Finance Ministry, the MICEX and participants in the government securities market have held a working meeting at the MICEX headquarters devoted to state internal borrowings in 2008. At the meeting, Alexander Shcherbakov, Deputy Director of the Department for International Financial Relations, the National Debt and State Financial Assets of the RF Finance Ministry, made a report on the plan of state internal borrowings for 2008.
In 2008, to promote the development of the internal national debt market, the RF Finance Ministry will continue to place benchmark issues of federal loan bonds (OFZ) with maturity dates in the key points of the yield curve. In accordance with the program of state internal borrowings in 2008, approved by the RF Government, the volume of 2008 issue of OFZ will reach 374 billion rubles, 66% more than in 2007. Besides OFZ, in 2008 the RF Finance Ministry will offer to institutional investors (mainly, pension funds and insurance companies) government savings bonds (GSO) to the amount of 105 billion rubles. These bonds were launched in 2006.
In 2008 the RF Finance Ministry intends to place new issues of 3- and 5-year OFZ-PD, each to the amount of up to 85 - 90 billion rubles. The Ministry will also continue to place issues of 10-year OFD-AD to the total amount of up to 60 billion rubles, 15-year OFZ-AD (up to 75 billion rubles) and 30-year OFZ-AD (up to 64 billion rubles). The schedule of issuance of OFZ in 2008 (by quarters) is as follows: in the first quarter it is intended to place OFZ to the total amount of 120 billion rubles, in the second quarter the volume of issuance will reach 110 billion rubles, in the third quarter it is intended to place OFZ to the amount of 91 billion rubles and in the fourth quarter 2007 – to the amount of 53 billion rubles.
As a result of the implementation of the Finance Ministry’s issuance plans, by the end of 2008 the structure of the internal debt will be dominated by 30-year OFZ-AD (143 billion rubles) and 10-year OFZ-AD (115 billion rubles). The volume of 15-year OFZ-AD will reach 75 billion rubles by the end of the year, while three- and five-year fixed-income bonds will account for 85 - 90 billion rubles.
Regular working meetings with participants in the government securities market and the media, which are held at the beginning of each calendar year and disclose information on the Finance Ministry’s future issuance policy in the government securities market, are an important part of the debt strategy of the RF Finance Ministry. They demonstrate the transparency of the Ministry’s policy and are in line with the best international practice of managing the national debt.