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Chairman of Russia's Central Bank of Elvira Nabiullina

Repayments on Russia’s Foreign Debt Will Decrease Twice in 2016 — Central Bank

Payments on Russia’s foreign debt in 2016 will be two times less than in 2015, the Central Bank does not see any risk. The chairman of Russia’s Central Bank of Elvira Nabiullina, spoke in this regard before the deputies of the State Duma of RF on Wednesday.

She noted that in spite of the western sanctions and the unavailability of foreign funds the external debt of Russia has lowered by 30% from January 2014 to the present.

“We have less of a concern for the future, because with every year of payments on foreign debts decrease. The next year will be about half the size, and then the situation will improve,” Nabiullina said, noting that the Central Bank is constantly monitoring the situation with debts of Russian companies. “We see no risks in this regard,” the chairman of Russia’s Central Bank said.

Recently, the Central Bank said that the peak payments on external debt have already passed for Russia. Payments for repayment of Russia’s foreign debt in local and foreign currency, including principal and interest, in the IV quarter 2015 amount to about $ 38.1 billion, which is 9.8% less than the payment of III quarter ($42.2 billion).

In I quarter 2016 the payments are expected to amount to $21.4 billion, which is 43.8% less than in the IV quarter 2015. In II quarter 2016, they may grow to $30.1 billion.The total external debt of Russia as of July 1st, 2015 was $ 555.7 billion. By October 1, 2015, according to the Central Bank, it was down to $521.6 billion, Russian newspaper Vedomosti reports.

By Nino Gojiashvili
Editor. Covers Turkish, Russian and Eurasian business and economic news.
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