Russia: 2002 Budget Execution And 2003 Debt Financing – Under Control

Annotation
Recently, Russian finance officials have made a number of comments regarding 2002 budget execution, as well as 2003 debt financing, including the suggestion Russia might refrain from issuing a new Eurobond even in 2003. This note looks into the various issues here involved: actual budget performance, the reasons and context for alleged revenue slippage, the regional budget challenges, including arrears developments, why 2003 budget financing remains manageable and why it is likely a new Russian Federation Eurobond might be issued in 2003. The findings re-affirm fiscal fundamentals remain supportive for Russian financial assets.