Photo: Natalia Seliverstova / RIA Novosti
Russia took first place for speed of debt reduction (public debt and debt of all sectors of the economy) among comparable in terms of development of the countries of Europe, Africa and the Middle East. It is reported by RBC with reference to the review of the Bank UBS.
It is noted that the country’s external debt fell by $ 53 billion in the second and third quarter of 2018 and reached the level of 2009, 467 billion. Thus, today Russia’s foreign debt amounts to 20.4 percent of GDP.
As stated in the study, to reduce the amount of debt on third with 732,7 million dollars, Russia took a little more than four years. While, for example, in Hungary it took more than eight years. USB also analyzed Romania, the Czech Republic, Poland, Turkey and South Africa.
Experts believe that Russia’s leadership is probably a necessary step. “It is due to the gradual closure of the country’s capital markets in 2014, to take was either very expensive or impossible in principle”, said Danske Bank economist Vladimir miklashevskii.
In the UBS the trend toward aggressive reduction of debt load is considered in a negative way. In particular, it States that the further reduction of debt can increase the net outflow of private sector capital that will negatively affect the exchange rate.
Video, photo All from Russia.