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. Last Updated: 07/27/2016

State Plans Bond Issue For Investment Projects

Prime Minister Viktor Chernomyrdin said Wednesday the government planned to launch a bond issue this year for the public to help restructure the economy.


The bonds will draw on public savings to fund major investment projects, Chernomyrdin told a meeting of regional Central Bank officials. "In fact, this is a continuation of the savings bonds issue for the public," he said.


Chernomyrdin said the government would guarantee the bonds and the holders would get interest from the revenues of the investment projects financed by the issue.


Funds raised by the bonds would be allocated to investment projects by auction, he said.


Winners of the auction would get a chance to buy the latest technology and equipment abroad, Chernomyrdin said.


Last year the government launched a 10 trillion ruble savings bond issue, which is being sold over three years in 10 tranches, of which three have so far been sold. The bonds have had a mixed reception, with the public proving largely skeptical, but commercial banks buying and trading them actively.