Sobyanin Proposes Deferral of $300 Bln Regional Budget Loan Payments

© Мэр Москвы Сергей Собянин

Moscow Mayor Sergey Sobyanin has proposed rescheduling the repayment of budgetary loans issued to Russian regions from 2027-2029 to a later period, according to TASS. He stated that this measure would allow Russian regions (subjects of the Russian Federation) to maintain financial stability and allocate additional funds for economic development and priority projects.

The proposal was made during a meeting with acting governors of Belgorod Region, Alexander Shuvalov, and Tver Region, Vitaly Korolev. Sobyanin, who heads the State Council Commission on "State and Municipal Administration," noted that many regions face significant budgetary pressures, with revenues distributed unevenly across the country.

He recalled that previously, federal budgetary loans had helped regions implement national projects, investment programs, and support economic development. However, the issue of repaying these loans is now becoming relevant for both regional and federal budgets.

According to Sobyanin, the proposal involves rescheduling the repayment of approximately 300 billion rubles ($3.5 billion USD, approximate conversion) that regions are scheduled to repay between 2027-2029. The plan is to postpone these payments to 2031-2033, allowing regions to retain these funds in their budgets for an additional three years.

Sobyanin expressed hope that the government would support the initiative. He also noted that implementation would require a decision at the level of the President of Russia, with relevant discussions potentially taking place soon.

The acting governors of Belgorod and Tver Regions supported the proposal, stating that deferring loan repayments would avoid the need for commercial borrowing, particularly for subsidized regions, and provide additional opportunities to fulfill social obligations and implement development programs.

According to materials from the press service of the Moscow Mayor and Government, rescheduling the debt repayment would allow regions to retain around 300 billion rubles, which could be directed towards investment projects, infrastructure modernization, and addressing other urgent tasks.