Friday, March 20, 2009

The amount of the Fund natsblagosostoyaniya will be reduced to two per cent of GDP.

The amount of the Fund of National Welfare (FNB), which is operated by the Ministry of Finance of Russia, by the end of 2011 would drop to two per cent of GDP, stated in the Government's anti-crisis measures in Russia. Now the fund is six per cent of GDP.
FNB will be reduced due to the fact that the Government intends to spend funds for the sustainability of Russia's financial system. To this end, in particular, the planned increase of the capitalization of commercial banks amounting to 225 billion rubles, while the largest state bank VTB and VEB - by 330 billion rubles.
Volume FNB as of 1 March 2009 amounted to 2,995 trillion rubles (83.86 billion dollars). February 1, the fund amounted to 2992 trillion rubles (84.47 billion dollars). Funding from the Reserve Fund and the FNB government of Russia will cope with budget deficits, which in 2009 is expected to be eight per cent of GDP.
While funds of funds did not go (except for money FNB transferred to deposits in Vnesheconombank), as well as a new budget with the revised macro-economic parameters have not yet been approved by the Government, the State Duma, the Federation Council and President.
Reserve Fund and the FNB established 1 February 2008 on the basis of the Stabilization Fund. At that time, the volume of 3.05 trillion rubles and 783 billion rubles, respectively.

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