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Borrowing Capacity In Russia Is Under Risk
May 19, 2017 17:28


(Source: https://www.ou.org/life/torah/mm_borrowing)

 The risks for Russia’s borrowing capacity are increasing due to the aging population and the growing burden on the pension system. This was stated by the Senior Director of the “Sovereign Ratings” direction of “Standard & Poor’s” Frank Gill on Tuesday, May 23.

“We see that Brazil, Russia, Argentina and Ukraine are those countries that are particularly sensitive to this parameter with regard to the demographic situation” - he said. These states already have a significant and constantly growing percentage of the aged population, as Gill explained. This factor is also important for the countries with developed economies, such as Spain and Germany, as the representative of S & P noted.

Ukraine has already begun to work on reducing the burden on the budget. “In our analysis of Ukraine we also took into account the latest proposals on the reformation of the pension system that are now being considered by the government, including raising the retirement age. Ukraine is working hard to reduce the coefficient of dependency” - Gill explained. On May 5 the Head of the Council of the Centre for Strategic Research (CSR), former Finance Minister Aleksei Kudrin, proposed to reduce the number of pensioners by nine percent, or 3.87 million people.


Sources: http://lenta.ru 

Author: Anna Dorozhkina

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