The government has relaxed the terms of restructuring the debts of the regions

The Russian government has softened the terms of the debt restructuring of Russian regions, the corresponding decree published on the website of the Cabinet on Tuesday.

The resolution of the government from 2017, it was determined that the Federal Ministry of Finance may, at the conclusion of additional agreements to set 1 January 2018 the limit values of the share of public debt regions.

«In the case of reduction in existing agreements as of 1 January 2018 to the actual level on January 1, 2017, the share of the public debt of the Federation more than 2% of the total income excluding grant income for the year 2017, provided the opportunity to establish the share of the public debt of the subject of Federation on 1 January 2018 with a reduction of not less than 2% of the actual value of the share of the public debt of the subject of Federation on 1 January 2017, but not higher than its actual value on December 1, 2017», — reminds the government.

«Signed a decree this rule is excluded», — the document says.

It is expected that this will improve the stability of regional budgets, have concluded the additional agreement on the restructuring of debt on budgetary credits, and also will reduce the risks of violations of regions-debtors of the obligations on gradual decrease in the share of debt in the amount of income.