There is no risk of default on federal loan bonds (OFZ) for the public, TASS news agency reports citing Deputy Minister of Finance Sergey Storchak.

“In terms of debt sustainability [the Russian Federation] has no equals. Thus, there is no risk of default on this tool [OFZ for the public]. I am speaking about the current situation”, he said.

The first issue of OFZ for the public is planned for April. The expected annual average yield of the OFZ is 8.5%. The first OFZ issue for the public will total RUB 20 billion. The minimum possible investment in OFZ is RUB 30,000 and the maximum is RUB 15 million per one issue.

The bonds will be issued semi-annually and the circulation period is three years. The coupon will be paid twice a year without any adjustment for inflationary components.

Russians will be able to obtain these bonds at Sberbank and VTB 24.