Are the business defaulted?

Experts warn: a sharp increase in external debt business can turn to another country in default. I refer to the official data. In the last three months, said the Central Bank, banks are imported into the country in the form of loans to 11.7 billion dollars, and the company took credit for 1.3 billion dollars.

the first half of Russia’s foreign debt rose by 11.2 percent and reached 287.4 billion dollars. This accounts for the lion’s share of borrowings no longer on the state and the private sector. As a result, the debt of banks without liabilities to direct investors increased from 50 to 66.6 billion dollars. And the companies - from 112,6 billion dollars to 122.9 billion dollars.

These rates of growth of external corporate debt and worrying experts. Several reasons. First, foreign loans are growing mainly due to public companies, and, according to experts, in an unsuccessful investment of the funds the state is likely to save their companies at the expense of taxpayers. However, Finance Minister Alexei Kudrin did not agree with such conclusions.

Secondly, continue to insist the experts, the influx of money from abroad is a sign of weak domestic financial sector. And, third, capital inflows posed problems for monetary authorities. Thus, the Central Bank has to buy “excess” currency to prevent excessive appreciation of the ruble.

According to the observations of experts, business has been actively engaged in abroad since the beginning of the year. And the situation has not changed, even though started in August, easing domestic stock market and falling commodity prices. Banks and businesses continue to willingly credited abroad due to much lower interest rates than in Russia, and the benefits of borrowing in the weakening currency - the dollar.

The trouble is, experts say that putting a dollar will have to give credit, with interest. It is estimated that the financial expert Michael Hasina, the total amount of loans that have secured our commercial structure, is already about $ 200 billion. Interestingly, if not our own reserves of the Central Bank, invested in foreign securities, give us a loan, asked Khazin. And if soon as it was in 1996-1997, will begin to fall the world price of oil, the ruble will not be able to keep. And one by one can be repeated default ’situation in 1998, the expert said.

“sovereign default, similar to 1998, when the state dared all of the money - and its citizens today can not - says vice president of Russia Union of Industrialists and Entrepreneurs Igor Jurgens. - The country’s finances are in brilliant condition. Russia is actively paying their external debt, which now is already less than 10 percent of GDP. This figure is very quiet. Private companies have no relation to the default of the country. They borrow and place its shares on the markets of East and West, with the risk of someone who has to deal with these companies. But here, as far as I know, is not expected any problems.

Here another problem arises. Economists of all the countries stressed that the increase in public sector, which is happening now in power in Russia, a negative phenomenon. you lose the flexibility of companies their mobility and transparency. There is a monopoly, which leads to higher prices for consumers. But it is a problem of our domestic economic policies. So we probably need to think about the political defaulted if we take the whole world is our main enemy, but not partner .

12 October 2006 | country, experts, increase

The World Bank has found the cause of poor investment climate in Russia
Investments in funds in Russia by 2009 will reach nearly $ 265 billion

More reading: • More than half of foreign investment in Russia came to the loans. »»»
According to the Federal State Statistics Service, in the first... • Bankers want to use the stabilization fund. »»»
The head of the Association of Russian Banks Garegin Tosunyan... • Brazil, to avoid excessive capital inflows had to impose a tax on foreign loans. »»»
The Brazilian government imposed a tax on foreign loans for... • Credo lend: Reality of Russian medium-sized businesses. »»»
How credited the Russian business is an obvious problem, with... • Investments in funds in Russia by 2009 will reach nearly $ 265 billion. »»»
Investment in fixed assets in Russia by 2009 will reach...