. Last Updated: 07/27/2016

Livshits Sees Need For More Loans

Russia may resort to massive borrowing to make up for a revenue shortfall caused by meager tax collections, Finance Minister Alexander Livshits told Interfax on Thursday.

Livshits did not say what kind of borrowing the government is considering. But he said revenue-raising efforts have fallen flat, and that October tax collection may be worse than September.

"We have never been closer to the point where we have to either gather revenues or change course," he said.

He added that the government will not resort to inflationary spending or raise its budget deficit target.

MinFin bonds fell by 2 percent on Livshits' comments, Interfax reported.

A team of officials from the International Monetary Fund began talks with Russian officials Thursday to check Moscow's compliance under a $10 billion loan deal. Officials said the team will focus on efforts to boost revenues.