Skip to content
Subscriber Only

Diamond-Capital Smolensk Bond Yields Signal Muni Distress

Russia’s regional authorities, lumbered by debt close to the highest level in five years, are facing rising borrowing costs with few prospects of relief from emergency measures being debated in Moscow.

Total regional borrowings rose to 1.7 trillion rubles ($49 billion) in May, near the most since at least 2009, Finance Ministry data show. The premium investors demand to hold Russian municipal bonds over sovereign securities was 37 basis points more than last year’s average on July 14, according to UralSib Capital data.