Primorye takes $30 million loan for budget deficit
Auctions for providing Primorsky Krai a loan with interest of up to 1.1 billion rubles (approximately $11 million at current rates) have appeared on the state procurement portal. The auction will run until 19 February, and the service provider must open a credit line of 3 billion rubles (approximately $30 million at current rates).
This is a non-revolving credit line, meaning that if the bank approved 1 billion rubles and you took 100 million rubles from it, then 900 million rubles would remain available. Even if you return those 100 million rubles, the limit does not reset, and only 900 million rubles would remain.
The funds are needed to finance the deficit of the regional budget of Primorsky Krai in 2026. This means that the region cannot generate enough tax and other revenues to cover important processes, including construction projects and programs. It is planned that Primorye will repay the interest and principal within three years, or, as specified in the contract, within 1,096 days.
In January, at a regular meeting of the Legislative Assembly of Primorsky Krai (ZSPK), it was discussed that the region«s expenses had increased by another 2 billion rubles (approximately $20 million at current rates). Deputies had to reallocate some budget funds for the construction of important facilities; for example, money from a school in Vozdvizhenka was taken for a school on Patrokl.
According to the Ministry of Finance of the Russian Federation, as of the beginning of 2026, Primorye«s internal debt amounts to 44.8 billion rubles (approximately $448 million at current rates). This sum is roughly 23.8% of the projected volume of the region»s own budget revenues for 2026.
