R.I.M. Porter Novelli

Bonds for population are called up to restore citizens’ confidence in the state


An open discussion within the framework of the project of the Ministry of Finance of the Russian Federation to raise the financial literacy of Russians, dedicated to federal loan bond issuance was held in TASS. Communication support was provided by R.I.M. Porter Novelli.

The event was attended by the Deputy Finance Minister Sergey Storchak, Director of the Public Debt and State Financial Assets Department Konstantin Vyshkovsky, Deputy Governor of the Tomsk Region, Head of the Department of Finance of the Region Alexander Fedenev and General Director of the National Agency for Financial Studies Guzelia Imayeva.

During the discussion participants shared what are the bonds for population, what are their significant parameters, mechanisms and purchase conditions. Speakers especially focused on comparative features of the bank deposits and bonds, explained, why state is interested in this financial instrument and ensures its reliability.

“Ministry of Finance of the Russian Federation does not regard the loan bond issuance as a fiscal instrument, as suggested by its small amount of allocation – not more than 30 billion roubles. Its goal is to offer the population a wider range of financial instruments of savings for personal purposes restore citizens’ confidence in the state act as sovereign borrower and facilitate domestic capital market “, highlighted Konstantin Vyshkovsky.

First issue of bonds for the population is planned to be done in April 2017, amount of the first issue of these papers will be 20 billion roubles. It is expected, that LBI-n yield will be higher than that of the bank deposits and will amount to 8.5% per annum. Bonds are offered for a 3- year-term. The nominal value of one bond will be 1 000 roubles. Minimum purchase price should be not less than 30 000 roubles, maximum – 15 million roubles.

“Advantage of bonds for population is an unconditional obligation of the state to return the entire amount of debt and pay coupon yield after a certain period of time. Yield of bonds will be higher than that of deposits in commercial banks”, as noted Sergey Storchak.

Experience of the Tomsk region, presented by the Deputy Governor Alexander Fedenev, showed clearly the population’s demand for government-paper. “Only during the last year region placed bounds for the amount of 1.6 billion roubles, and for the 15 years about 10 billion roubles was borrowed from the population”, explained, Alexander Fedenev.

Agency R.I.M. Porter Novelli provided event and communicational support of the event within the framework of the project of the Ministry of Finance of the Russian Federation “Assistance to the rising of population’s financial literacy and development of financial education in the Russian Federation”.