Russia faces full-blown crisis, says ex-Finance Minister

[The Great One]

so why is china fine with high intretests rates? we have no debts so nope, its just 13%

High interest (17%) for one certainly mean the end of new investment in a country. Everyone shores up their money in banks when you get 17% returns (especially in a hyper-inflationalry economy). You may think this means more capital for business in the form of loans, but thats not true as for the businessman, he must now repay money at 17%. That is a very highhhhhhh financial cost i.e a very big financial risk - no more entrepreneurs. In Russia's case, given the high volatility/political instability and above-all sanctions - this also means bye-bye cheap foreign capital, foreign investment and foreign technology. Any new investment must necessarily be done by state-run corps, but as you saw in Putins speech, Government doesn't have any more money and is cutting budgetary allocations. (thank you Saudi Arabia).
Please don't bring China, they are incomparable.

 

[senheiser]

High interest (17%) for one certainly mean the end of new investment in a country. Everyone shores up their money in banks when you get 17% returns (especially in a hyper-inflationalry economy). You may think this means more capital for business in the form of loans, but thats not true as for the businessman, he must now repay money at 17%. That is a very highhhhhhh financial cost i.e a very big financial risk - no more entrepreneurs. In Russia's case, given the high volatility/political instability and above-all sanctions - this also means bye-bye cheap foreign capital, foreign investment and foreign technology. Any new investment must necessarily be done by state-run corps, but as you saw in Putins speech, Government doesn't have any more money and is cutting budgetary allocations. (thank you Saudi Arabia).
Please don't bring China, they are incomparable.

china is not exception it has higher interests rates than there is inflation 3 times higher and they are still growing.

 

[atatwolf]

they are fine, their growth rate is 7.3%. Turkey interests rates below inflation and you have growth rate of 1.7% now

China's economy is having its own problems. Also I wouldn't trust Chinese numbers without critical thinking:
BLOCK: China's GDP Faces 25% Correction - Business Insider

china is not exception it has higher interests rates than there is inflation 3 times higher and they are still growing.

Their growth is slowing down. Probably more than the Chinese government would like to admit.

 

[senheiser]

17% interest rate is almost three times of the Chinese interest rates. China is doing fine compared to Russia.
What I mean is that with this trend in future, Russia will lose a lot of its reserves to pay debts.

and japanese interests rates are 0% thats ∞ times lower than china, yet japan is in recession.

 

[SAMEET]

17% interest rate is almost three times of the Chinese interest rates. China is doing fine compared to Russia.
What I mean is that with this trend in future, Russia will lose a lot of its reserves to pay debts.

what debt do russia got there public debt is lowest in world !

 

[rmi5]

what debt do russia got there public debt is lowest in world !

First of all, it's not.
second, What I said is a simple economic principle. It's like explaining F=ma to someone.