Russia » Economics

Russia's external debt is rising

In the course of the last nine months, Russia's debt has risen and currently exceeds a $13 billion barrier. As a result, according to the Bank of Russia, the country's external debt has gone over 165 billion USD.

In the meantime, experts consider this to be a positive factor. It simply proves the fact that Western countries are willing to lend Russia and Russian government rather considerable sums of money. According to Gazeta.Ru, Western banks and other credit organizations are issuing credits more easily these days for our companies, banks and non-financial organizations. The latter in turn, tend to accept those credits more eagerly.

 Gazeta.Ru notes that Western representatives also tend to provide long-term credits. Experts regard such trust towards the Russian Federation as a straight correlation with Russia's recently acquired higher rating.

Some experts however warn of certain dangers. Such serious strengthening of dollar in relation to ruble, if it will ever happen, can cause a major crisis particularly because of all the credits. Denis Nushtaev considers such drastic consequence to be quite possible. According to him, the government should strengthen its control over certain banks and financial organization which attempt to receive immediate gains.

Russia is expected to pay more than $1 billion worth of external debt by the end of this month.