Add to favorite
 
123
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS


Buzz Barometer: Russias Bailout Plan Unlikely to Work Forbes
February 16, 2015 11:55


Photo Credit: http://www.jamestown.org
 
The US magazine has dissected the blueprint tabled by the Russian cabinet in response to the deteriorating economic outlook in a no-words-minced piece by contributor Anna Borshchevskaya.
 
The author with the name that sounds very much like Russian polled a panel of experts that painted a skeptical picture of the effort.
 
According to FBK Institute for Strategic Analysis Director Igor Nikolayev quoted by the Forbes, the plan’s authors “are acting about the same way as they had done six years ago – on the principle of ‘let’s pour money [on the problem], and then, maybe, everything will end, oil prices will bounce back again.’” The plan’s priorities, too, according to Nikolayev, are about the same as they were during the global financial crisis, but “you have to consider that this is a different crisis,” he added.
 
“It’s a typical government-led program. It focuses on subsidies,” Ivan Tchakarov, Russia economist at Citibank was quoted by Reuters as saying, “I haven’t seen any particular measure that strikes me as a structural reform, it’s just talk.” Tchakarov added that the plan is vague, as the Russian government still has to revise its budget and macroeconomic forecasts for 2015.
 
The article’s author focuses on transparency, saying that there would be just 1.3 trillion “of truly new funding sources” since 1 trillion was already allocated to the Russian banking sector and accounted for in the 2014 budget.
 
“Russia’s current economic problems  are deeper than what the country faced in 2008,” that’s the key takeaway from the piece.
 
“Russia no longer has the same level of international reserves it had in 2008. While it may appear that the country’s overall reserves are still high, the usable reserves may be too low,” reads the article.
 
Low oil prices and galloping inflation may add up to the problems and exacerbate the situation caused by Western sanctions .



Author: Mikhail Vesely

Tags:      

Next Previous

You might also find interesting:

HSBC: Russian GDP Will Fall To 3.5% Kursk Oblast Is the Most Corrupt Region In Russia Italy's MADE Expo WorldWide in Moscow Buzz Barometer: Brussels Poised to Disrupt Russia-Hungary Nuclear Deal - FT Russian Economic Activity Is Still Declining









Comment on our site


RSS   twitter   facebook   submit

Bookmark and Share

search on the map
TAGS:
sanctions  Comets  Russian press  US Magnitsky Act  Multinational Russia  Russian singers  Exhibitions in Moscow  Science  Festivals in Saint Petersburg  Parks of Russia  reforms  Russian opposition  Vladislav Starevich  Rostov-on-Don  Krasnoyarsk  Russian ballet dancers  Grigory Yavlinsky  Russian business  Pavel Krusanov  Arkady Rylov  Mikhail Bobyshov  How to Get to The Fisht Stadium in Sochi  Russian transportation  Novgorod Region  travel to Russia  Moscow planetarium  Mariinsky theatre  Alexey Rybnikov  Festivals in Moscow  Musical Theatres  human rights in Russia  Mercedes-Benz Fashion Week Russia  Ufa  Russian regions  Moscow  Russian tourism  St. Petersburg  Nature Reserves  Russian Cinema  Russian culture  Youth Olympic Winter Games 2012  Adygea  Isaac Levitan  Euro 2016  Football  Christianization of Russia  Events in Moscow  Russian space exploration  Chegemskie Waterfalls  Ingeborga Dapkunaite 


Travel Blogs
Top Traveling Sites