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27 February, Monday

Ufa   °

Share of debt on loans in Bashkiria GRP increased seven times since 2000 - to 47.4 percent

Business

In Bashkortostan, indebtedness under credits granted to economy, according to the results of 2013 was 556.1 billion rubles. Its share in GRP has reached 47.4 percent, an increase almost seven times since 2000. This was said at a meeting of the Government RB on Wednesday by the Deputy Prime Minister of the Government RB, Minister of Economic Development Eugene Mavrin.

“A share of debt on loans granted to the economy amounted to about 47.4 percent in the gross regional product as of January 1, 2014. In the early 2000, this share was barely 7.2 percent, which is almost seven times lower than the current level, in 2005 — about 23 percent” Eugene Mavrin said.

According to Deputy Prime Minister, this trend indicates that "we started actively to attract credit resources for the economic development of our republic, which ultimately allow implementing large-scale projects". And this is "a universal practice in most countries".

Eugene Mavrin believes that considering the planned borrowing "values of debt sustainability of the republic will continue to be outside the risky ranges".

Tags: loans,GRP
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