According to the forecasts made by EconMin Russia will easily continue its early debt repayments. By 2008 the
foreign reserves of the country's central bank are expected to reach USD 277-280bn. The ministry also foresees that in 2006-2008 the supply of foreign currency will decrease and this will limit the appreciation of the RUR and the growth of FX reserves of the CBR.
The trend will be due to gradual decrease of oil and metal prices. The demand for foreign currencies will also be declining. After the early repayment of the remaining debt to Paris Club the government's payout will be reduced to USD 14-16bn a year. It is planned that negotiations with regard to PC debt repayment will be restarted again in 2006.
The macroeconomic indexes were kept unchanged by the ministry. EconMin believes that the growth of real RUR/USD rate will make up 4.2% eop in 2006, 3.7% eop in 2007 and 3.1% eop in 2008. The ministry thinks that CBR will continue pursuing the policy of limiting the RUR strengthening.
It is expected that the capital outflow will amount to USD 8-9bn in 2005. It is expected to reach its maximum in 2005 and then a certain deceleration will be seen. It is even possible that there will be a net capital inflow by 2008. This trend will be connected to the necessity of large capital investment in the country. The ministry predicts
the improvement of investment climate and greater possibilities for domestic companies to obtain financing from abroad.