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Finance and Credit

Sources to cover Russias external debt

Vol. 29, Iss. 8, AUGUST 2023

Received: 10 April 2023

Received in revised form: 24 April 2023

Accepted: 11 May 2023

Available online: 30 August 2023

Subject Heading: Financial system

JEL Classification: H60, H63, H69

Pages: 18251844


Valerii V. SMIRNOV I.N. Ulianov Chuvash State University (ChuvSU), Cheboksary, Chuvash Republic, Russian Federation


Subject. The article considers sources of Russian foreign debt coverage.
Objectives. The aim is to determine sources to cover Russias external debt.
Methods. The study rests on the systems approach, using statistical analysis.
Results. The paper substantiates the need to identify sources to cover the Russian external debt in the face of unprecedented pressure of Western sanctions. The analysis of trends in standard components of the balance of payments of the Russian Federation unveiled external surplus of the trade balance and financial account. Other sectors without debt obligations to direct investors and direct investment enterprises are emphasized among the standard components of the external debt. The paper shows a significant increase in the price of gold for rubles. As sources of debt coverage, the study highlights foreign currency deposits of non-financial organizations, the increase in gold price for rubles, and trade surplus.
Conclusions. The selected sources are fully capable to cover the external debt and slow the dynamics of Other sectors (without debt obligations to direct investors and direct investment enterprises). They indicate to financial authorities the possibilities of replenishing international reserves of the Russian Federation.

Keywords: external debt, international reserves, trade balance, financial account, gold price


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