Development Institute: VEB will bring 1% of Russian GDP
Financial organization will deal with the examination of state projects
The contribution to the country's GDP from projects that are financed with the participation of the state corporation VEB.RF should potentially be up to 1% annually. This was stated by Prime Minister Dmitry Medvedev at a meeting of the supervisory board of a financial organization. By 2024, VEB in total will receive in the form of subsidies for the repayment of foreign debt about 600 billion rubles. The annex to the draft federal budget for 2019 and for the planned period of 2020 and 2021 takes into account that the amount of support for VEB from the budget to repay foreign debt for 2019 is planned at 100 billion rubles, for 2020 - 50 billion rubles, for 2021 year - also 50 billion rubles.
VEB.RF will receive additional funds to reimburse part of the costs of servicing foreign loans. To increase the efficiency of the state development institute, it is necessary to strengthen its financial model. This is a long-term settlement of foreign debt. The approach of recapitalization of VEB.RF for 300 billion rubles through the new mechanism of the so-called approved capital has already been worked out. This is part of the share capital that can be provided when the need arises for investment resources.
- As a New Year's gift, I signed a decree that defines the formed and approved capital of a state corporation. This is a new mechanism for capitalization of development institutions, - said Dmitry Medvedev.
Earlier, the Ministry of Finance prepared amendments to the Federal Law “On the Bank of Development” and the Budget Code. Bills secured a new function of VEB. Its essence is in the coordination and organization of activities of all development institutions on the issues of ensuring the long-term socio-economic development of Russia. The state corporation will act as curator of state development institutions and ensure their informational interaction with the authorities.
- The task of VEB in this sense, of course, is not just to distribute money, but to reduce risks. And when considering projects, they will be evaluated not only by a state corporation, but also by banks. And the contribution to the gross domestic product of projects that are financed with the participation of VEB should potentially be up to 1% annually , the chairman of the government noted. - Examination of projects conducted by VEB should reach a new level. This approach, I hope, will allow a state corporation to more actively influence the growth of the real sector of the economy.
During the meeting, the Supervisory Board also discussed the implementation of investment projects with the participation of the state corporation, in particular, the financing of oil tankers of the new generation of Aframax size. In September, Rosneft, SSK Zvezda, Arctic Leasing LLC (part of VEB-Leasing group) and SKF Eco LLC (part of Sovcomflot group) concluded a number of contracts for the construction of two new generation oil tankers using LNG as fuel, with their subsequent long-term chartering. Thus, Russia will be able to compete with leading shipbuilding countries, to take a leading role in the formation of promising international transport corridors.
- Last week I held a meeting on Sabetta - on the development of energy projects, projects in the field of liquefied natural gas and, of course, the development of regions. It was about whether there is enough capacity for the transportation of raw materials, the volume of which increases with the implementation of investment projects, - said Dmitry Medvedev. - It is important for us to synchronize the actions of all the participants, including the builders of the icebreaking and tanker fleets. So that later it didn’t happen that the raw materials are there, and there are no tankers for transportation (or we frantically run around the market and try to look for something abroad). You need to build ships today.
VEB plans to provide funds for the construction of a new generation of shuttle tanker with the best ice and maneuverability characteristics. The planned volume of participation of the corporation will be 18.5 billion rubles.
Hole wrote:The bubbles in the west are about to pop. That´s why even the Fed is raising rates so they can lower them after the crash.
Im not that happy abut that since Im living in same ecosystem. But objectively well it bubble bursts with or without me as I am irrelevant in such processes.