The 1998 crisis in the economy (the default) is one of the most difficult in the history of Russia.The reason for this phenomenon served as a huge amount of debt the state, which arose as a result of you drop the Asian economies, as well as prices for raw materials in the world, which have been the basis for export, and Russia's economic policy, including the creation of T-bills.
Before this happened, the IMF singled out the Russian loan of twenty-two million dollars, but state revenues failed to cover even the interest payments on the debt.
1998 financial crisis fell on August 17th.On this day, the Russian government announced the default of the loan agreement.This event was a surprise to foreign investors who believed in the fact that Russia is a sufficiently strong and prosperous state.
It should be noted that in the history of the world was no case of defaulting, which is denominated in local currency.However, in this case, a default on T-bills, which the income before the crisis began in 1998, was one hundred and forty per cent per annum.Usually in such cases in other countries began to print money, and when the currency depreciated, there was repayment of debt.It is waiting for such a scenario, investors who made investments in Treasuries, from Russia.These contributions They cause fixing the rate of the national currency against the US dollar.
should be noted that Russia had several exits from the situation.Firstly, you can print banknotes, thus, start the mechanism of inflation.It was also possible to declare a default on both external and domestic debt.RF chose the last option on the grounds that the new inflation is not possible, since the early nineties, there has been a similar phenomenon, as outstanding external debt to Russia was unacceptable.
crisis of 1998 had serious consequences for the development of economic sectors, with both negative and positive.For example, reduced the level of life of citizens, many banks and businesses were ruined, fell the confidence of foreign investors in Russian banks, as well as its national currency, the ruble has declined significantly.However, all these events have enabled the Russian economy to become competitive, in addition, significantly increased the budgetary discipline.Defaulted also allowed the Russian industry gain great power, cut off from its imports and increase exports.
When was declared the 1998 crisis in Russia, investors began to negotiate with the Government of the Russian Federation, however, payments amounted to only one percent of the total debt.
Thus, for Russia defaulted brought more positive things than negative.He contributed to the purification of the economy from hindering its development elements and Bole take responsibility for planning budget.This small business headed for development in large enterprises.After the default start rapidly develop light and food industries, growing consumer demand.
should be said that the crisis is a result of the development of those sectors of the economy, which previously have been replaced by imports, for example, the production of screwdrivers leading automotive companies of the state.Also, the crisis of 1998 contributed to the fact that the Russian economy flowed investments by foreign companies in the country opened its production, and soon began the development of the stock market, so that Russian companies have entered the international market.
To date, Russia has experienced ups and downs in the economy.There is a possibility that the following defaults will be different even greater scale.
