Estimated the likelihood of default in Russia

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Sergey Dubinett: Sergey Bobylev / TASS

The former head of Bank of Russia Sergey Dubinin, who led the regulator during a default in 1998, estimated the chances of a repeat of the economic crisis. His prognosis he shared in an interview with TASS.

“We do not have substantial public debt, especially short-term, internal. The default does not threaten us in any way. Russia’s entire public debt, including external, below 20 percent of GDP. And it is balanced by currencies,” — said Dubinin.

The economist supported the current head of the Central Bank Elvira Nabiullina that she has moved to a floating ruble exchange rate. According to him, this tool is good because all the debts are paid not at a fixed rate, and on the current.

Dubinin is confident that the Russian economy has high potential, but it needs to overcome the problem of low productivity. Without this, the former head of Central Bank expects a challenging decade of development. To solve the problem, in his opinion, is possible with the implementation of unpopular structural reforms.

17 August 1998 the Russian authorities announced a technical default on the bonds amounting to 72.7 billion dollars. In fact, the country declared itself bankrupt who is unable to pay its debts. A key reason for the collapse of world oil prices to 9 dollars per barrel.

Video, photo All from Russia.



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