Experts assessed the possibility of a repeat of the 1998 default

The Russian financial system in August 1998 was unable to pay off domestic and foreign debts due to the pyramid of state short-term liabilities. On August 17, the government announced the introduction of a set of measures aimed at normalizing financial and budgetary policy, which actually meant a default and devaluation of the ruble. The fulfillment of obligations to non-residents on loans, on transactions in the derivatives market and on pledge operations was suspended for 90 days.

–

photo">

–

July 28, 13:57

The Central Bank has estimated the timing of the recovery of the Russian economy—

“Both in 1998 and in 2020, the Russian and world economies faced a crisis, including a decline in energy prices. But the current economic situation is significantly different from what it was twenty-two years ago. The main differences are governments and the Central Bank have significant reserves and a low level of public debt. … A close default is not visible, “they write.

—

So, according to CB, at the beginning of 1998, the total external debt amounted to $ 182.9 billion, of which $ 147.7 billion accounted for the state. As of July 1, 2020, the external national debt was only $ 65.5 billion, with a total debt of $ 477.3 billion. But at the same time, on August 7, 1998, the Central Bank’s gold and foreign exchange reserves were only $ 17 billion, and on August 7, 2020 – $ 600.7 billion.–

photo">

–

July 7, 05:26

Japanese financier assessed the resilience of the Russian economy during a pandemic—

Analysts point out that the mid-term outlook should not be scary either. “The public debt in Russia is lower than in the group of developed countries and a number of developing countries. Nothing indicates a dangerous level of this debt and the announcement of a default. If we are talking about public debt, then after what happened in the late 1990s Ministry of Finance maintains the strategy of maintaining a low level of public debt and a safe ratio of it to GDP, “the experts noted.–

The current ratio of Russia’s internal public debt as of August 1 is 10.7 trillion rubles, which is about 10% of GDP, while the external debt in rubles as of July 1 is 3.7 trillion rubles, and the debts of regions and municipalities are 2.5 trillion rubles … In total, this is about 17 trillion rubles, or 15% of GDP. At the same time, the debt-to-GDP ratio of 60% is considered to be the critical level of debt for the economy, while for developing countries it is about 40%.

–

“Taking into account the fact that for 2021 and the medium term, the Ministry of Finance has plans to contain the increase in spending, and the projected growth of the economy and oil prices, the government will not need additional financing through borrowing, which means that debt growth will slow down,” the experts concluded.

—

photo">

–

June 17, 08:04

Medvedev spoke about three shocks for the Russian economy in 2020—

Related posts:

Supplying Weapons to Ukraine or Admitting its Potential Disappearance: Colonel Markus Reisner's Warn...

The guy who caught the earth half way around... Nanjing medical student 28 years freed

Knab is experiencing a malfunction that prevents users from logging in to the app - IT Pro - News

British government resigns in Crisis government / Article

Share this:

• Facebook
• X

Related