Siluanov urged to prepare for a prolonged crisis

Difficult situation in the economy is long-term, you need to prepare for long-term restructuring of the economy. This was stated by Russian Finance Minister Anton Siluanov at a meeting of the Board of the Federal Treasury.

“The situation is long-standing. We see these bounces from the viewpoint of improving the balance of payments, as it was in the past difficult moments, we do not expect. So we are preparing for a long work in the current conditions,” — said the Minister (quoted by TASS).

He noted that currently the situation differs significantly from the crises of 1998 and 2008-2009.

Previously, the newspaper “Kommersant” reported that the Minister of Finance has stated in the letter of comments to the anti-recessionary plan of the government for 2016. According to him, in pursuance of the plan lack of funds: the Cabinet’s anti-crisis Fund has only 120 billion roubles is included in the plan of 250 billion rubles.

He proposed a way to solve the problem of shortage of funds, Recalling the right of the White house to spend in 2016 to 342,2 billion rubles from the presidential reserve.

In relation to agenda items concerning the anti-crisis Fund, the Ministry of Finance assumes that the funding of engineering, major reduction of crisis costs of the Ministry of health and export support via VNESHECONOMBANK, Roseximbank and the Russian export hub. Subsidies on loans to industrial enterprises of 10 billion rubles and support of mechanical and industrial engineering 21 billion rubles, Siluanov considers it impossible. The Ministry of Finance insists on the creation of a reserve at 34.9 billion rubles for incidentals.

According to the forecast of the Ministry of Finance of Russia for the period up to 2030, which was reported in the newspaper “Vedomosti” a week ago, in the absence of reforms Russia will have a prolonged period of stagnation. The representative of the Ministry then explained that the Agency has developed a target scenario, the key of which are structural changes in the economy — in particular, he mentioned the increased return on capital through productivity growth, outpacing wage growth, and, as a result, the increase in the share of investment in GDP. This maneuver requires greater flexibility of labour market, mobility of workers, investment in their retraining, noted the representative of the Ministry of Finance.