Posts Tagged ‘Banks and credit’

Global Crisis

Tuesday, November 17th, 2015

Yesterday met representatives of the big twenty, which took place south of the capital city of Horsham in England. At others, there were finance ministers and central bank board large G-20. Meeting took place in dense mode, almost daily. What can be expected from the results of this meeting. Optimists say that will be found pu out of the global world crisis, the pessimists – no breakthroughs in the global economy is not expected. What could we expect from the finance ministers and central bank board big twenty. Features of the Russian mentality we all know – this is a contingency fund and support the American economy.

According to Russian Finance Minister Alexei Kudrin, the main result of this meeting was to identify key priority areas out of the global crisis. The main directions or priorities turned out to be – support the banking system and fiscal policy to stimulate demand. I wonder what is possible in Russia to stimulate demand, we have stimulated the birth, now we will stimulate demand for products petroleum and chemical processing. This will result allocation of fuel the agricultural sector, that if thinking logically should result in a decrease in food prices of domestic proizodstva by September month. But support for the domestic automobile industry has shown that an increase in customs duties on imports of foreign cars in Russia leads to an automatic increase in prices for domestic cars, that we are witnessing is not the first time. The banking system has already received a sufficient limit on support from the government, the banking sector can lend to the real economy now. Number of loans granted to domestic enterprises in late 2008 and both increased, but continued loan growth, we observe will not, under the present economic contraction talk about increasing the credit is not necessary, for any purpose bart loans if the number of orders declined. The banking sector currently scrutinizes the quality of each of the financed enterprises, which automatically increases the length of the loan.

Credit default was originally founded in the banking system as a percent, but the excess of 8% barrier defaults – it will be a disaster for the banks, so we go to the government asking for money. Shock after the first wave of the crisis has passed, now all is quiet waiting for any industry will be the most unprofitable to make appropriate conclusions and to put financial flows to the most promising sectors of the economy, which will signal the beginning of the crisis. Key measures for overcoming the crisis now Takes the U.S., she first entered into a crisis, it is first and take measures, Europe is carefully watching the Americans, the Chinese carry out their policies. Americans are pouring big money flows, they are trying to pull the global economy from the crisis, which inevitably spins the pendulum of inflation, but at the moment about inflation, you need to think smaller. On a single global currency until it is too early to say. Issues at a meeting of big Twenties had much talk is about. How to help countries that do not have their natural resources? How to help countries that are helping other countries? End of the crisis have not yet seen. Continuation of meeting Big Twenty held in London in April, It sobirutsya presidents big twenty, now will wait for further steps to withdraw from the global crisis. Let's see what will bring us the month of April, I venture to predict the ways of overcoming the global financial crisis is not found be.