Economist predicts growth of debt of friendly countries to Russia

Lending by one country to others is beneficial for both sides. Against this background, it is not excluded that the debt growth of Russia-friendly states may increase. This was stated by Georgy Ostapkovich, Director of the Center for Conjunctural Studies of the Institute of Economic Research of the National Research University Higher School of Economics, to Izvestia on December 11.

Earlier in the day, RIA Novosti reported, citing its analysis of World Bank data, that Russia last year increased its lending to friendly countries to $30 billion. Egypt, Bangladesh and India received the most new loans. Belarus remained the largest debtor.

"As economic history shows, any country is always interested in loans, that is, in crediting its economic activity," Ostapkovich explained.

According to him, every loan provides for interest. If there is money, getting additional profit through interest is always considered reasonable.

"If a country gives a loan to another country, the state that gives it enjoys from the other party various kinds of privileges in other directions. It could be some kind of joint construction or even cultural activities. That is, this country gets into the priority of the country to which it borrows money," the economist explained.

The expert clarified that the funds that are given to countries do not hit the Russian economy. A big reason for issuing a loan is geopolitics.

"I think that countries friendly to Russia will continue to be issued loans in small amounts in the future to maintain a positive orientation. After all, the loan is issued not only against interest, but also against some kind of agreements, including political, economic ones. The loan will definitely return a hundredfold in the future, because countries have a positive attitude towards the one that gave them the loan," he said.

According to Ostapkovich, lending will continue, but in small amounts.

"The Russian economy has fully recovered"

Vladimir Putin's speech at the forum "Russia Calling". Key quotes

Earlier, December 4, Russian President Vladimir Putin said that investment in the Russian economy is growing for the third year in a row, despite all the problems that are created for the country from the outside. He also instructed the government, together with the Central Bank, to stimulate demand for securities by ensuring the protection of investors' rights and information transparency of companies.