Becoming a Russian Oligarch After Rebirth
Chapter 1164 - 982: Clear Conscience

Chapter 1164: Chapter 982: Clear Conscience

"Director Mikhail, our national debt amounts to just one hundred billion US dollars, and the government’s stated goal is to pay off the debt as soon as possible. Now you suddenly want to issue two hundred billion in new national debt—can we really afford to repay this in the future?"

A committee member asked worriedly.

Russia still has a lot of debt inherited from the Former Soviet Era, most of which is held by members of the Paris Club and the London Club, essentially European investors.

Whether for pride or for the nation’s reputation, even during the toughest economic periods in recent years, Russia has steadfastly repaid its debts, unwilling to default.

Once the national debt defaults, it’s akin to the national reputation going bankrupt internationally, and the consequences of that are severe...

Thus, successive governments have aimed to clear the debts.

Now, just as the old debts are not yet fully paid off, Wang Ye suddenly wants to issue two hundred billion US dollars in new debt!

Many members naturally felt immense pressure and worried that this debt plan might be unsustainable.

They were afraid that no one would want to buy the new national debt, and also worried about not being able to repay it later.

As this new national debt plan was spearheaded by the Economic Committee, if anything went wrong, the committee couldn’t shake off the responsibility, which would seriously tarnish its prestige!

Wang Ye smiled slightly. Since he had proposed this plan, he had certainly considered it thoroughly.

He patiently explained to the assembled committee members:

"Regarding the issuance of debt, one must consider it from various perspectives.

Some countries are impoverished and can only cover their daily expenses by borrowing money. Such national debts naturally come with severe consequences and are unlikely to attract investors, probably not even selling out.

But some countries have good economic development and a promising future.

Issuing national debt, then, is just a means to develop the economy more rapidly and better, and having enough capability to repay the debts will make such bonds highly sought after by investors internationally.

So, which scenario does our country fall into?

I guess there’s no need for me to elaborate on that point!"

Upon hearing Wang Ye’s explanation, some members expressed their understanding.

With the skyrocketing prices of international crude oil and natural gas, Russia’s finance revenue has been increasing over the years, and its economy has also been improving.

There appears to be no risk of economic downturn in the foreseeable future.

So, issuing national debt at this time naturally does not pose the risk of default or inability to pay back the debt, and the bonds issued would likely be readily accepted by international investors!

As for the money obtained through the issuance of national debt, there are many uses.

Domestically, it can be used to improve public welfare and develop major infrastructure, laying a good foundation for future development.

Internationally, it can be used to aid neighboring countries, helping them develop more swiftly and creating a stable and secure environment for ourselves!

Two hundred billion is neither too much nor too little. If used wisely, it can indeed have a significant impact!

After all, this is a plan proposed by Director Mikhail!

In making such broad strategic decisions, he has never made a mistake, and this time should be no exception!

Thus, in the subsequent voting decision, all committee members unanimously raised their hands in approval, and the plan to issue new national debt was smoothly passed...

......

As per protocol, policies passed by the Economic Committee can be directly implemented by coordinating with relevant government departments; they just need to be filed with the Kremlin and the Duma.

Wang Ye’s "National Debt Issuance Plan" was naturally unimpeded.

However, his father-in-law was also a bit worried that the debts might not be repayable in the future, and called Wang Ye over to discuss it.

"Misha, do you really think we can sell such a huge amount of national debt? I know you’re comparing us to the United States, thinking that if they can issue trillions of US dollars in national debt annually without issue, we can too. But you have to consider, the US dollar is the general currency linked to the oil trade, the major transaction currency in international markets. In this respect, our ruble simply can’t compare," he said.

Clearly, the Kremlin still lacked confidence, worried that once the national debt was issued, it might face the embarrassing situation of having no buyers...

Wang Ye said calmly, "There’s no need to worry about that. I obviously understand that our current strength can’t be compared to that of the United States. That’s why I haven’t planned on issuing trillions of US dollars in national debt like they do; I only dare to issue about two hundred billion US dollars at a time. This is because I believe that with our current national power and economic level, we can completely handle issuing this amount of debt.

Yes, the US dollar indeed dominates the international oil market and is a global currency, holding immense advantages.

So theoretically, no matter how much debt they issue, it’s not a problem because the whole world picks up the tab for their debt!

But don’t forget, our country’s share in the international energy market is not insignificant.

Crude oil and natural gas are hard currencies!

Just these two alone are enough to support trillions of US dollars in debt, so the two hundred billion US dollars in bonds we are issuing this time are certainly not going to have any trouble selling!

I can guarantee that as soon as they are launched on the market, they will be snapped up very quickly.

Because in these past two years, the international price of crude oil has continued to climb steadily, and I believe this trend will not change in the short term.

In this way, our finance revenue will naturally rise year by year, and there will be no issues in repaying the debt..."