Putin Says Russian Economy Solid Enough to Ride Out World Crisis
Posted on Wednesday, September 17th, 2008 | In RussiaOn September 16, the Russian news and information agency, Novosti, reported that Prime Minister Vladimir Putin said Tuesday, “The Russian economy is strong enough to see out the current global financial crisis.”
In the United States, for example, effects from the mortgage crisis have upset markets. The collapse of the Lehman Brothers investment bank sent Russian stocks plummeting.
Putin said during a meeting with Azerbaijani president, “We have no doubt that the safety nets that have been put into place in the Russian economy over the past few years will work to good effect”.
Russia’s benchmark RTS and MICEX indexes dropped 11.47% and 17.45% respectively, on Tuesday, which was largely due to investor withdrawal from the Russian economy.
“We are studying the possibility of using long-term instruments by the Central Bank,” Putin said, speculating about possible developments for the Russian economy, “We will act carefully and judiciously.”
Putin added that the Finance Ministry had injected 150 billion rubles ($6 billion) into the Russian economy through the financial market in liquidity to domestic lenders in repossession auctions. The Central Bank also contributed 325 billion rubles ($13 billion) to the repurchasing auctions.
“Tomorrow the Finance Ministry plans to more than double the figure, offering 350 billion rubles ($14 billion),” the prime minister said.
Putin said the global crisis was certainly affecting the Russian economy because it was a part of the global economy, but stressed that it would have no problem riding out the bumpy patch.
President Dmitry Medvedev said Monday the Russian market was not in danger and ordered the government to boost liquidity.
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Dmitry Medvedev, finance ministry, Investment Bank, Lehman Brothers, Novosti, RTS, RUB, Russia, Russia, The central bank, United States, USD, vladimir putin
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