Russian crisis immunization makes the world stare

And this could be possible only if they invite Russian, India, Brazil and China to their little cozy company.

By the way, in Washington the Russian representatives (including the Financial Minister Alexei Kudrin) were not treated only like a guest, but as an equitable partner especially in discussing “how we can get out of this crisis with minimum losses”. Once more this news justifies what AiF has already written for many times: Russia is not“smooth water” and we have the same problems as the other countries do.

What did the major financial people of the Earth decide to do? Last Friday’s document is signed: «to be done right away» – and consist of 5 points:

1. The essential pecuniary institutions get guaranteed help. It’s permitted to use ANY resources. (it’s undescribed yet what kind of sources they mean)

2. This help is to be open for a whole sum of banks and other financial institutions, not only for the main «monsters». Credit and cash streams must work failure-free.

3. Banks get a possibility of raising any kind of capital (either private or state) to return their clients credence and restore normal credit granting for businessmen or any other people.

4. State endowment insurance programs must be safe. They are to be the guarantee of the country financial system’s stability.

5. The state offices are to take care of returning the mortgage or any other valuable aftermarket back to life (as AiF has already told this was the overestimated mortgages and speculative realty games which lead to US crisis. Sure these markets are being saved without a big happiness but because of a real necessity).

Russia has already done many of the said above including giving big money to the major banks and raising the upper bar of endowment insurance. As our Secretary of Treasure Alexei Kudrin says the country has taken preventing steps earlier than many others. The Minister says our country’s situation can be called stable because of great international reserves which are «being pretty safe», and also because of the decision to «place national prosperity fund’s part into the internal market.» Alexei Kudrin stresses Thatcherism in prosperity placing (the same as they use for Russia’s gold and foreign exchange reserves) is the main reason of Russia’s minimal losses in a global financial downfall: “This case is unique. We have the only fund in the world which has not lost the money.”

The Minister has answered some questions in Washington and noted that State government would not use the chance to buy the most attractive private companies or to become an active stock gambler in the situation when Russian companies’ stocks break. «The state is not a black raider,” Alexei Kudrin insists. He informs 175 billions of rubles (from the state fund) will not influence the quest or stocks’ price. Also the state is not going to buy more than 5% (approximately) of any company. And the state’s choice of stocks is keeping in secret to avoid unnecessary rush.

Generally the fight with the global financial crisis is high. And the most interesting (and pleasant) thing is that Russia does not play the crushed one. No, it looks almost like a role model. We hope our government “fireproof» measures slowly become a long-term program of the country’s financial and social system’s strengthening.

Galina Sheikina

Russian version