No plans to limit state cos' foreign borrowings

The Russian government does not plan to set a limit for foreign borrowings by state companies, Deputy Economic Development and Trade Minister Andrei Klepach said.

At the same time, the Finance Ministry has proposed monitoring state companies' foreign borrowings so that the central bank will know the size of capital inflows and can respond accordingly, Klepach said.
This proposal has been included in a draft package of proposals to curb inflation, he said.

State companies have undertaken large foreign borrowings in recent years to fund their expansion, resulting in massive capital inflows into the Russian economy.
In 2007, state companies accounted for over U.S. $40 billion of the total net capital inflow of $82 billion, Klepach said.