Ivanovo oblast will reduce the cost of debt service

© RIA Novosti / Vladimir Traveloperator in fotoracconti Russia. Archival photoIvanovo oblast will reduce the cost of debt service© RIA Novosti / Vladimir Traveloperator the image Bank

The government of the Ivanovo region with the help of the budgetary credit raised to replace commercial borrowing, intends to 2018 to reduce the cost of debt service to 120 million rubles, told RIA Novosti press-service Agency.

In the first 9 months of 2017 in Ivanovo region the share of commercial loans in the total amount of debt was 56%. According to the authorities, in November, the region allocated additional budget loan of 2.2 billion rubles for the replacement of commercial borrowing in the region.

«Taking into account additional budget credit, the region will reduce the cost of debt service in excess of 120 million rubles in the next year», — cited the press service quoted acting Governor Stanislav Voskresensky.

Russian President Vladimir Putin on Wednesday at a meeting of the state Council has instructed regions faster to refinance at a lower interest rate and to resolve the situation when the regions take loans from commercial banks at high interest rates. The President also asked the governors not to gain more debt, «scattering» resulting from the Federal budget funds, and to spend money on the improvement of the financial system.

As reported in the press service of the government of the Ivanovo region, the head of region has set the task of restructuring the debt taken on at the Federal level decisions. «The region during the seven years of the program of restructuring of loans will save about 840 million rubles,» — quoted Stanislav Voskresensky. In addition, reached an agreement with Sberbank to lower interest rates on their earlier commercial loans. In General all of these decisions on regulation of public debt in 2018 will release about 300 million rubles of budget funds, which will be directed on the decision socially-economic problems of the region, the report said.

It is noted that the Ivanovo oblast will fulfill the terms of restructuring of debt on budget loans and reduce the amount of debt on commercial borrowing to the level of 50% of tax and non-tax revenues in 2019.