MIL OSI Translation. Region: Russian Federation –
Photo by E. Samarin. Press Service of the Mayor and the Moscow Government
Their face value is one thousand rubles. Bonds can be issued for a period of one to 30 years.
Moscow has approved the terms of issue and circulation of city bond (domestic) loans. The package of resolutions was signed Sergei Sobyanin at a meeting of the Presidium of the Moscow Government.
The city has the right to issue six types of bonds: three with debt amortization (with constant, fixed or variable coupon income) and three without debt amortization (with constant, fixed or variable coupon income).
The par value of the bonds is one thousand rubles. They can be issued for periods ranging from one to 30 years.
The conditions for the issue and circulation of urban loan bonds are subject to state registration with the Ministry of Finance of the Russian Federation.
The Moscow government will make decisions on the issue of certain bond issues (their types, volumes, placement and circulation periods, coupon rates). At the same time, the needs of the city budget will be taken into account, taking into account the upper limit of the state internal debt of the city of Moscow as of January 1, 2022 (established by the law of the city of Moscow “On the budget of the city of Moscow for 2021 and the planning period of 2022 and 2023”).
Raising loans is an economically viable measure that will allow investing in transport and social infrastructure, laying the foundation for the future development of the city.
Moscow has the status of a reliable borrower. Throughout the history of its presence on the financial market, the capital has timely and fully fulfilled its obligations to repay and service the state debt.
Now the city’s national debt is 30 billion rubles (1.1 percent of the annual budget revenues). Attraction of new loans in the planned volumes will not disturb the stability of the city budget.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.