Nizhny Novgorod plans to borrow money from VTB and “Russian bank of region development”

These funds are necessary to cover deficit of budget.

18.Aug.14 2:29 PM
By Abigail Richards
Photo Toinnov.com

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Nizhny Novgorod plans to borrow money from VTB and “Russian bank of region development”

The government of Nizhny Novgorod region has announced of auctions on providing necessary funds for covering budget deficit and payment of the governmental debt. According to information on NewsRoom24.ru the overall crediting volume is more than 5 billion rubles. However this sum was a bit decreased due to the fact that auctions were announced manqué.

There is information on the official website of governmental purchases. According to this information VTB and “Russian bank of region development” have won the auction. Sberbank of Russia and SMP-bank have also taken part in the auction. However they offered less attractive interest rates. That is why their applications have been called off.
In accordance with primary information VTB will lend 2.7 billion rubles while “Russian bank of region development” is ready to provide 2.15 billion rubles. This credit will be provided on 1-year term.

It should be noted that governmental debt of Nizhny Novgorod region has decreases by 0.4 billion rubles over the last month. Now it is 53.62 billion rubles. Credits will help to improve the situation and decrease the overall debt.

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