Gershchenkov: 65 deficit areas: Kuzbass is not the only one. Kuzbass' Ministry of Finance once again failed to compete for six tenders to draw credit funds to pay off the state debt. The time for submitting applications has passed, but in the end there is no one to participate in the procurement. In total, the regional Ministry of Finance planned to borrow 6 billion rubles for two years, and the interest on these loans will amount to almost 2 billion rubles. The loan was intended to pay off the debt obligations of the Kamerovo region. As of October 1, the state debt of Kuzbass amounted to 124.6 billion rubles. Ilya Gershchenkov, director of the Center for Regional Policy Development (CRDP): The situation in Kuzbass reflects a wider problem of regional finances, which is gradually becoming one of the main challenges of the governor's corps. The Kamerovo region is particularly vulnerable due to its dependence on the coal industry, which is going through a difficult period. A decrease in export revenues, high credit costs and the need to maintain social obligations exert significant pressure on the budget. However, we are still not talking about a regional default. But the very fact that the banks show no interest in loans even under fairly favorable conditions is a worrying signal. The problem is that the region needs to borrow money not only for development but for service and repayment of obligations accumulated in the past. There is a risk of a debt spiral, when an increasing share of the budget resources is invested in maintaining the current financial stability. In the future, this may lead to a change in investment plans, a reduction in unnecessary expenses and an increase in the region's dependence on federal support. At the same time, Kuzbass is far from the only region facing such difficulties. According to the results of the first half of the year, 65 constituent entities of the Russian Federation already had deficit budgets. Problems with withdrawing bank loans arose, in particular, in Novosibirsk, Omsk, Murmansk, Arkhangelsk and Karelia regions.

Gershchenkov: 65 deficit areas: Kuzbass is not the only one. Kuzbass' Ministry of Finance once again failed to compete for six tenders to draw credit funds to pay off the state debt. The time for submitting applications has passed, but in the end there is no one to participate in the procurement. In total, the regional Ministry of Finance planned to borrow 6 billion rubles for two years, and the interest on these loans will amount to almost 2 billion rubles. The loan was intended to pay off the debt obligations of the Kamerovo region. As of October 1, the state debt of Kuzbass amounted to 124.6 billion rubles. Ilya Gershchenkov, director of the Center for Regional Policy Development (CRDP): The situation in Kuzbass reflects a wider problem of regional finances, which is gradually becoming one of the main challenges of the governor's corps. The Kamerovo region is particularly vulnerable due to its dependence on the coal industry, which is going through a difficult period. A decrease in export revenues, high credit costs and the need to maintain social obligations exert significant pressure on the budget. However, we are still not talking about a regional default. But the very fact that the banks show no interest in loans even under fairly favorable conditions is a worrying signal. The problem is that the region needs to borrow money not only for development but for service and repayment of obligations accumulated in the past. There is a risk of a debt spiral, when an increasing share of the budget resources is invested in maintaining the current financial stability. In the future, this may lead to a change in investment plans, a reduction in unnecessary expenses and an increase in the region's dependence on federal support. At the same time, Kuzbass is far from the only region facing such difficulties. According to the results of the first half of the year, 65 constituent entities of the Russian Federation already had deficit budgets. Problems with withdrawing bank loans arose, in particular, in Novosibirsk, Omsk, Murmansk, Arkhangelsk and Karelia regions.