Thursday, December 11, 2008

Putin will create in the government crisis committee.

The Government of Russia will soon establish a special commission that will coordinate the efforts of all departments and develop measures to counter the financial crisis. This was at a meeting of the Government of Prime Minister Vladimir Putin, RIA Novosti. A commission headed by First Vice Prime Minister Igor Shuvalov.
According to Putin, one of the functions of the new commission would also counter negative social trends, including increased unemployment in the country. In addition, the commission will coordinate actions to stabilize commodity markets. It is reported by Interfax. "
When exactly will the new commission is not yet known. According to the Prime Minister's request to organize a new body will be signed today, December 10.
Creating a crisis committee can be perceived as another government measure to combat the financial crisis. Until then, officials have carried out a series of concrete actions aimed at stabilizing the economy. For example, system-banks were made public loans for hundreds of billions of rubles, while large companies have been able to refinance their debts to Western creditors with the help of public funds transferred to them via Vnesheconombank. Also, the Government decided to reduce the profit tax from 24 to 20 per cent, which should help businesses save some funds for development.
In addition, the government allowed VEBu participate in the tender for the financial markets, creating demand for the securities of Russian companies. The banks have lost liquidity in the worsening financial crisis, the state helps through the Deposit Insurance Agency.
Remember that because of the crisis in Russia has reduced the rate of growth in industrial output and GDP. In addition, dozens of banks were on the verge of bankruptcy, and the ruble has become progressively cheapen main foreign currencies. In early December, agency Standard & Poor's downgraded Russia's sovereign credit rating one step to "BBB".

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