All Regions Get Access to Low-Interest Treasury Loans
The Russian Ministry of Finance will extend a new instrument - treasury loans 'under need' - to all regions starting September 1 for financing cash flow gaps within a month.
Consensus
- All Russian regions will be able to receive short-term treasury loans starting September 1, 1, 2025.
- The loans are intended to cover temporary cash flow gaps between the execution of budgetary obligations and the receipt of planned revenues.
- The loans will be provided at a rate of 0.1% per year for up to one month.
- Regions must submit an application to the Ministry of Finance along with a cash flow plan for budget implementation.
- The mechanism was previously tested in four regions in a pilot mode.
- The goal is to help regions meet spending obligations without using commercial loans.
- The Ministry of Finance stated that this will reduce regional spending on servicing state debt and improve budget stability.
- The Ministry of Finance and the government are monitoring the implementation of the instrument.
Points of divergence
- On February 10, 2025, the Russian government approved new rules for providing treasury infrastructure loans to regions until 2030, with a 3% annual interest rate over 15 years. — vedomosti
Coverage (2 sources)
- Ministry of Finance extended preferential treasury loans to all regions — Ведомости
- All regions will be able to attract short-term treasury loans 'under need' from September 1 — Интерфакс