The head of VTB Andrey Kostin proposed to restart the privatization

The head of VTB Andrey Kostin believes that the restart of privatization in Russia can become a source of funds for creating a new model of economic growth. Among other sources, he names the build-up of public debt, from which the economy can additionally receive about 70 trillion rubles.

In an article for RBC Mr. Kostin named the priorities necessary for the development of the country. This is the construction of new logistics corridors and transport infrastructure, the creation of a reliable financial settlement system, the restart of industries based on innovative solutions, the import substitution of high technologies, the strengthening of defense capabilities and the integration of new regions.

“Where can I get money? Three answers to one question: restarting privatization; a bolder development use of financial reserves and public debt; redistribution of budgetary funds in favor of the above three priorities,” wrote Mr. Kostin.

According to the head of VTB, privatization has repeatedly proved its effectiveness and Russian business has accumulated significant potential. “There is money in the country,” he is sure.

Mr. Kostin believes that privatization was actually suspended against the backdrop of the 2014 sanctions. “I’m sure that the resumption of the privatization program will not only make it possible to successfully attract funds to the budget on market terms, but will give a powerful impetus to clearing those “bottlenecks” where the willingness to take risks, make quick and unconventional decisions is especially important today,” the statement reads. article.

Among the advantages of privatization, Andrey Kostin names “strengthening the foundations of market mechanisms, giving dynamics to the further development of the stock market … the formation of a new generation of managers.” This measure can also provide “such an important condition for the healthy functioning of the economy as competition.”

The head of VTB called into question the need to maintain public debt at the level of 17% of GDP, while the threshold of 60% of GDP is considered problematic. According to Mr. Kostin, “without significant risks to financial stability, the domestic economy can receive an additional 70 trillion rubles.” These funds, he notes, can be attracted, among other things, through more active participation of the largest banks in the placement of federal loan bonds.

Another source of income, Mr. Kostin considers the liquid funds of the National Wealth Fund. “We have been taking money out of the economy for too long. It’s time to bring them back,” he added.

Leonid Uvarchev