[lbo-talk] Russian financial reserve currently $6 bln - Kudrin

[Chris Doss]

Russian financial reserve currently $6 bln - Kudrin
MOSCOW. Sept 1 (Interfax) - The financial reserve, being set up within the 
federal budget to pay foreign debt, is already $6 billion, but the 
government plans to build on this amount.

"This is how much we have so far, and we hope to increase it," Alexei 
Kudrin, a deputy prime minister, has said.

Russia should have a stabilization fund consisting of petrodollars next year 
as well, Kudrin, who is also Russia's finance minister, told the students of 
the Finance Ministry's Budget and Treasury Academy.

"We will expend this [stabilization fund] on strategic goals, we will not 
let it go to waste. We only get high oil prices once every 20 or 30 years," 
Kudrin remarked. The fund will also make Russia's economy less exposed to 
oil prices, he said.

Kudrin went on to underline the importance of budget surpluses. "This is the 
fourth year in a row that we have been in surplus, and the whole country 
benefits," Kudrin remarked.

Inflation, for example, can be lowered, from an anticipated 12% or 
thereabouts in 2003 to 10% in 2004 and just 5%-6% in two or three years from 
now.

Budget surpluses also keep the ruble steady, Kudrin continued. They 
encourage economic growth, they are good for the country's credit ratings 
and reduce the cost of borrowing for Russian industry. Investors can put 
their money into Russia without fear of devaluation or default. Personal 
incomes also grow - these have gone up 8%-10% in real terms in the last few 
years, Kudrin added. <>

_________________________________________________________________
Help protect your PC: Get a free online virus scan at McAfee.com. 
http://clinic.mcafee.com/clinic/ibuy/campaign.asp?cid=3963