Economic Crisis In 2008
10 facts on the financial crisis in Russia in 2008
2. Adoption of the Federal Act on Additional Measures to Support the Financial System of the Russian Federation, signed by Dmitri Medvedev on 14 October 2008.
3. On 15 October, an amendment to article 11 of the FZ on the insurance of the deposits of natural persons in the FM banks entered into force. Amendments guaranteed 100 per cent of the amount of deposits not exceeding 700,000 roubles in the event of an insurance.
4. The Services Business Index (the Supply Managers Index) showed the first decline in history and fell below the critical mark. The crisis in Russia in 2008 hit the trade and destroyed many logistics chains.
6. The Government has printed the GPA and has sent them to maintain the liquidity of the banks and the WEB to pay the debts of Russian companies. In September-October, the GVA will decline by $100 billion.
7. The Government announces the smooth devaluation of the rouble relative to the bible basket. By the end of 2008, the rouble rate had declined by 11 per cent against the dollar. The Government had in fact recognized the existence of a crisis in the Russian economy and the CB had to expand the monetary corridor because of a lack of cash.
8. The Agency for Mortgage Housing Credit (AIWC) has established a fund to assist those who will not be able to pay mortgages because of the decline or sharp decline in incomes due to the financial crisis in Russia.
9. Prime Minister Putin promised to help citizens pay loans to cars issued in Russia. The Government is going to compensate for two thirds of the BC rate.
10. A list of 295 companies that will receive financial assistance from the State in the event of their grave situation due to the financial crisis in Russia has been published.
Causes of the crisis in Russia
It is clear that the 2008 crisis in Russia has not arisen in itself. There were reasons, both within and outside the country. However, in our view, external causes of the 2008 crisis has done more to the financial system than internal ones.
External causes of the financial crisis in Russia: a sharp drop in oil prices from almost $150 to $40 per barrel. The financial disaster in the United States and the resulting chain reaction all over the world. The global liquidity crisis, which restricted the access of Russian companies to cheap foreign loans.
