Source Pravda.Ru

Why Do Tatars Need So Much Money?

The Russian Sberbank (Savings Bank) distributed 18 billion rubles among the Tatarstan people!
The Russian Sberbank’s department “Bank of Tatarstan” reports that it has achieved the limit of 10 billion rubles in the loan liabilities of companies and natural persons in December 2002.

The news agency Tatar-Inform reports, as compared with 2001, the credit portfolio of Sberbank in the republic of Tatarstan increased 1.9 times. Since beginning of the year, Sberbank provided loans to the sum of more than 18 billion rubles; the loans were given to about 1.500 organizations of different kinds and to more than 51 citizens of the republic. A questions arises: for what purpose does the republic need so much money?

The republic of Tatarstan obviously has some special secret which helps it to stay afloat in spite of everything. In spring of 2002, Tatarstan became one of the leaders regarding the relative credit capacity among the RF subjects; the rating was compiled by the AK&M news agency. The rating was designed to estimate the opportunities of a RF subject to carry out its debt liabilities. The republic of Tatarstan was rated fourth among the 69 regions of the Russian Federation.

Analysts of the agency decided that the republic had a relatively small public debt regarding the budgetary proceeds. At that, the volume of the republic’s debt repayment exceeded the volume of borrowing, that reveals a positive tendency in the work of the Tatarstan government with fulfillment of creditors’ requirements. The agency also points out that Tatarstan is a sure leader in allocation of loans and budgetary loans, it is also a leader regarding the ratio of budgetary deficit to its proceeds. The republic of Tatarstan was also rated among the ten best subjects of the Russian Federation regarding the volume of own proceeds and financial showings.

The rating was based upon the information about budget performance by the RF subjects, upon the information about the volume of the public debt provided by regional administrations, and also upon information provided by the RF Statistics Committee.

However, when the state budget for 2003 was considered in the State Duma, it turned out that Tatarstan’s financial situation was not so perfect. The deputies planned the consolidated budget of Tatarstan with the deficit of 3.4 billion rubles (the deficit of the Tatarstan budget is just a bit less than 2.4 billion rubles).

It is quite natural that, as usual, Moscow was blamed for the deterioration of the situation in the republic. The Tatarstan authorities were displeased to state that redistribution of taxation flows from the Russian regions to the federal center would unfortunately begin next year. According to the estimates of the Tatarstan Ministry of Finance, the ratio between the proceeds of the republic and of the federal center changed four times in the favor of the latter. At that, although Moscow promised to compensate completely for the abolishment of the highway-user tax and for the transfer of the tobacco excise tax to the federal budget, nothing of the kind has been done.

It is probable that some companies and natural persons decided to compensate the deterioration of life with mass loans in Sberbank. However, as we know, Sberbank provides loans to trustworthy people only, which means that Tatarstan citizens are borrowers of a very high level. But if the federal center doesn’t give up the policy of removing money from the Russian regions, it may turn out that loans of Sberbank won’t be paid off.

Ahtyam Ahtyrov PRAVDA.Ru

Translated by Maria Gousseva

Read the original in Russian: http://economics.pravda.ru/economics/2002/7/21/60/5023_TatarCredits.html

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