By Toni Vorobyova
ISTANBUL, Oct 3 (Reuters) - Russia is talking to the World Bank about securing a possible loan worth up to $4 billion, but will only go ahead with the deal if there are no strings attached, Finance Ministry officials said on Saturday.
Russia is planning to return to the foreign debt markets next year, after a decade's absence, because a recession has tipped its budget into deficit. It plans to borrow around $18 billion next year through Eurobonds and possibly a World Bank loan.
'We discussed the possibility of getting a loan worth $2 billion to $4 billion,' Finance Minister Alexei Kudrin told reporters after meeting World Bank President Robert Zoellick.
'We are interested in a simplified, sped up loan. We have agreed to talk about the terms in the near future.'
Deputy Finance Minister Dmitry Pankin said Russia wanted the loan to be purely on financial terms.
'If the loan requires us to agree our economic decisions (with the World Bank), if there is a system of measures, then we will probably not take this loan if it has conditions,' Pankin said. 'If it is a purely financial loan, we will look at it from a purely financial point of view.'
Financially, a loan from the World Bank could be a cheaper option for Russia than borrowing on the market.
Pankin said rates of LIBOR plus 30-50 basis points had been discussed, compared to rates of LIBOR plus 250-270 basis points that Russia could currently expect if it issued 5-7 year bonds.
The foreign borrowing planned in the 2010 budget is defined as debt issuance, but that need not pose a hurdle to possible borrowing from the World Bank.
'The acting government has the right to distribute this among (different) instruments,' Pankin said.
How much Russia borrows would depend on how much money it actually needs next year -- higher than forecast oil prices could mean bigger budget revenues -- as well as the terms on offer from the World Bank versus the market, Pankin said.
(Editing by Ruth Pitchford) ($1=30.06 Rouble) Keywords: WORLDBANK/RUSSIA (antonina.vorobyova@reuters.com; Tel: +7495 7751242, Reuters Messaging: antonina.vorobyova.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
ISTANBUL, Oct 3 (Reuters) - Russia is talking to the World Bank about securing a possible loan worth up to $4 billion, but will only go ahead with the deal if there are no strings attached, Finance Ministry officials said on Saturday.
Russia is planning to return to the foreign debt markets next year, after a decade's absence, because a recession has tipped its budget into deficit. It plans to borrow around $18 billion next year through Eurobonds and possibly a World Bank loan.
'We discussed the possibility of getting a loan worth $2 billion to $4 billion,' Finance Minister Alexei Kudrin told reporters after meeting World Bank President Robert Zoellick.
'We are interested in a simplified, sped up loan. We have agreed to talk about the terms in the near future.'
Deputy Finance Minister Dmitry Pankin said Russia wanted the loan to be purely on financial terms.
'If the loan requires us to agree our economic decisions (with the World Bank), if there is a system of measures, then we will probably not take this loan if it has conditions,' Pankin said. 'If it is a purely financial loan, we will look at it from a purely financial point of view.'
Financially, a loan from the World Bank could be a cheaper option for Russia than borrowing on the market.
Pankin said rates of LIBOR plus 30-50 basis points had been discussed, compared to rates of LIBOR plus 250-270 basis points that Russia could currently expect if it issued 5-7 year bonds.
The foreign borrowing planned in the 2010 budget is defined as debt issuance, but that need not pose a hurdle to possible borrowing from the World Bank.
'The acting government has the right to distribute this among (different) instruments,' Pankin said.
How much Russia borrows would depend on how much money it actually needs next year -- higher than forecast oil prices could mean bigger budget revenues -- as well as the terms on offer from the World Bank versus the market, Pankin said.
(Editing by Ruth Pitchford) ($1=30.06 Rouble) Keywords: WORLDBANK/RUSSIA (antonina.vorobyova@reuters.com; Tel: +7495 7751242, Reuters Messaging: antonina.vorobyova.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.