The repetition of the crisis of August 1998 is now impossible, as the Russian economy became much more resistant to external shocks. About it “RIA Novosti” reported the press service of the Bank of Russia.
“The current situation is fundamentally different from the situation in 1998 that, in fact, makes impossible a repetition of those events,” said the controller, explaining that the most significant difference between today’s situation is the presence of significant accumulated reserves (sovereign funds and currency reserves of Bank of Russia) and the low level of public debt, including external.
The Central Bank added that conservative monetary and fiscal policies take into account not only the current but also the medium term. The press service stressed that in Russia formed a stable and well-developed domestic financial system, and also introduces the experience of conducting macroeconomic policy in the context of a sharp deterioration in external conditions, as it was in 1998 and 2008.
“All of this is key to the sustainability of the Russian economy to external shocks,” concluded the Central Bank. The press service explained that in 2016, the Russian economy has largely adapted to the increased variability of foreign economic conditions. “The situation in financial markets remains stable, and economy is approaching the recovery phase,” said the Central Bank.
August 17, 1998 in the so-called “black Monday”, the Russian authorities have announced a technical default on the main types of government securities. This has led to a sharp collapse of the ruble.