We read on Komsomolskaya Pravda the following:
Vladimir Vladimirovich (Putin) seems to be fed up with the fact that Russian banks don’t lend to the real economy and he is reportedly tired of hearing the complaints of factory and plant managers about banks not lending them money. According to Komsomolskaya Pravda, Putin said:
“Until that moment that money is brought to the real sector of the economy, I ask the leaders of financial institutions not to plan for summer leaves.”
However, bankers seem justified: The second wave of the crisis is approaching, so why lend?
Peter Aven of Alfa-Bank thinks that credit defaults might reach 25% and that businesses simply couldn’t pay back their debts, because nobody bought their products – so there is no revenue.
Aven thinks that the situation could be rectified if the government were to provide 2 to 3 trillion rubles (63 to 95 billion USD).
“It seems to me that Peter Olegovich is overly pessimistic,” said Arkady Dvorkovich, assitant to the President. While he acknowledges difficulties, he does not think that bad credits will reach that level, “because the government takes action, and what we did in the winter, will have an effect now.”
So to say that Russia without doubt will have a second wave of economic crisis in autumn, is premature, thinks Komsomolskaya Pravda.
Well, I must say they have a point there. How, in a consumer driven economy, could there be an improvement as long as people are loosing their jobs and those who are still at work get even less compensation? Credit is obviously not the solution here. And now there is already talk about cutting into social welfare ‘to balance the budget’.
The situation can not be improved by giving the banks even more money, they simply don’t need it.
The money is missing with the consumers, not the banks. So you have the choice of either to provide jobs or another form of income.
[Source: Komsomolskaya Pravda, Moscow Edition]