OREANDA-NEWS  As a result of the increase in Russia's domestic public debt, which includes federal loan bonds (OFZ) and state guarantees, resources for financing private projects in the country may become less. This is reported by the Izvestia newspaper with reference to the November draft document of the Central Bank (CB) on "The main directions of development of the financial market of the Russian Federation for 2024 and the period 2025 and 2026."

According to the Ministry of Finance, as of December 1, 2023, the volume of Russia's total domestic public debt was estimated at 20.7 trillion rubles. Since January, the increase has been 10 percent. The Central Bank sees certain risks in this trend, including the threat of further displacement of corporate loans by government ones. The regulator called such a threat the main one for the Russian economy if the country's public debt continues to grow in the medium term. In particular, due to this trend, financing of private projects may be disrupted.

Experts clarify that government debt competes for demand with corporate borrowing. Investors choose which types of securities are more profitable to invest in — public or private. In order to attract more attention to their assets, companies are forced to keep competitive rates.