Russia needs to boost its state debt according to VTB’s CEO

On Wednesday, VTB (VTBR.MM) Bank’s Chief Executive Andrey Kostin said that Russia must increase its state debt to support the country’s economic growth. He also offered the bank’s aid to ramp up government bond purchases and other financial budget needs.

“I am an advocate of an increase in state debt; this is important for economic development. VTB is ready to finance the budget, especially if there are refinancing tools,” Andrey Kostin said in an interview with Reuters on Wednesday.

Russia’s public debt rose to 18.5% of its gross domestic product (GDP) in 2020 compared to its 12.3% record last year.

The country’s economic contraction went down by 4-5% this year after an 8% slump in the second quarter.

“We have passed the lowest point in regard to the economic contraction, and I can see from my clients that the situation is manageable,” Kostin stated.