Balanced macroeconomic policy is cure for crisis – Putin

SOCHI, August 9 (Itar-Tass) —— A balanced macroeconomic policy is a cure for the crisis, Prime Minister Vladimir Putin said on Tuesday.

“Self-alarming should be constant to prevent the worst. This is not a joke; the stock market is a very sensitive thing,” he said. “There is also a need for a balanced macroeconomic policy.”

Putin said that liquidity would be added to currency markets if necessary. “The Finance Ministry and the Central Bank are monitoring the market status and will add liquidity if necessary,” he said.

The Russian state debts is only 10% GDP, and only 3% of that amount are foreign debts, Putin said. The country’s gold and foreign currency reserves near $550 billion. The federal budget deficit may be smaller than 1% GDP this year.

In turn, Finnish Prime Minister Jyrki Katainen, the other speaker at the press conference, said it was hard to predict the consequences of the current turbulence. He said the situation was rather nervous due to the mistrust in certain countries and their ability to handle their debts.

The abrupt fall of stock markets is fraught with two risks, Katainen said. First, stock markets may be frozen and thus cause problems for companies. Secondly, there may be a long period of slow growth of stock markets, he said. The premier called for a very clear and strict economic policy.

Leave a comment