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#16 - JRL 2007 - 210 - JRL Home
No Risk Of Banking Crisis In Russia - Presidential Expert

MOSCOW. Oct 6 (Interfax) - Arkady Dvorkovich, the head of the Russian presidential economic analytical department, has ruled out the possibility of a banking crisis in Russia.

"There is no and will not be any risk of a banking or other financial crisis in Russia," Dvorkovich said in an interview shown on the Vesti-24 news television channel on Saturday.

"One of the most reliable pillars on which the Russian banking system rests is private deposits, which is the most stable source of financing for banks," Dvorkovich said.

"Therefore, the Russian banking system on the whole has no reasons for concerns. There are no such risks," he said.

"If some banks have too large foreign debts, I think they could find enough resources on the Russian financial market to minimize this problem," Dvorkovich said.

"In any case, the Russian banking system needs an additional capital inflow. If these banks seek to attract new shareholders and investors, this could be a solution to the problem," Dvorkovich said, referring to the problem of the repayment of their foreign debts.

Asked whether individual companies operating on the Russian financial market default on their loans, Dvorkovich said, "Bankruptcy is a normal form of existence on the market."

The number of bankruptcies in Russia is much lower than on other markets, including developed ones, Dvorkovich said. "If someone leaves the market for various reasons, including because of having pursued too risky a policy, this is normal," he said.

"What counts most is that there should not be a systemic crisis on the financial market, which could harm the economy, the people, and the country on the whole," he said.

"It is certain that there are no such risks," he said.