Klepach: factual dynamics of GDP is lower than a potential one
Sochi, October 3, 2015
SOCHI, October 3. /TASS/. Factual dynamics of Russian GDP is a lot lower than a potential one and economic potential is diminishing. This is an opinion voiced by VEB Deputy Chairman Andrei Klepach in the course of the International Investment Forum in Sochi.
“Factual dynamics of GDP is lower than a potential one. As a result of what is happening now our potential GDP is dwindling, that is, conditions for a future economic growth are deteriorating”, he said.
Mr. Klepach believes that in order to change the situation for the better we need to loosen monetary policy. “A more difficult question is how to do it. It is one of dilemmas and not only of the Russian Central Bank but also of others. In my opinion, to soften the policy head-on by way of reducing interest rates sharply in all directions would be wrong”, he said.
Such a step won’t result in easing credits to enterprises and in bringing about economic recovery but in a strengthened currency exchange rate. “Then we can start raising a question of toughening a regime of currency operations, introducing currency control, so a long chain of problems will follow”, continued Klepach.
In his opinion, the Russian Central Bank should go along a path of using non-traditional instruments for supporting investments and small-sized enterprises. He added that they were being used but not in sufficient volume.
V. Dmitriev: “By supporting big business we shouldn’t forget about developing small and medium-sized enterprises”
The National Banking Magazine
Moscow, October 2, 2015
A key priority in VEB’s operation should be to support major investment projects aimed at introducing advanced technologies to increase our country’s export potential. This is a crucial task now, given that the amount of long money in our economy is decreasing under the influence of restrictive measures taken against Russia.
This is an opinion that Vnesheconombank Chairman Vladimir Dmitriev voiced in his address at the International Investment Forum Sochi-2015. “At the same time, by supporting big business we shouldn’t forget about developing small and medium-sized enterprises. In our activity we always keep this in mind and to this end for example we created a single window system for owners of SMEs. We hope that this system, to be more exact, the Export Center will play a key role in supporting SMEs”, explained Vladimir Dmitriev.
“I’d like to stress that this initiative is important because it is designed to create investment lift. It is aimed at reducing tax burden on SME companies through entering into their capital by the Credit Guarantee Agency”, added Vnesheconombank’s Chairman.