Former economy minister of Russia: 20% of regions are de facto bankrupt


Andrei Nechayev, who was Russia’s Minister Economy in 1992-1993, warned of an oncoming disaster with the budgets of Russian regions.

According to him, the disaster “gets closer, and seems to have become inevitable for some of them [regions].”

“According to international rating agency Standard & Poor’s, by 2019 the debt of Russian regions will grow by 50%. As a result, the costs of servicing and repayment the debt will increase. These expenses will grow by more than 30%. Currently, the debt burden of one third of Russian regions is more than 60% of their income. By the end of 2018, one fourth of the regions will spend up to 30% of their for the servicing and repayment of their debts. According to S&P, it indicates a high probability of default. There are 85 regions in Russia, but only a little more than a dozen of them are “donors”, while about 20% of the regions are de facto bankrupt,” wrote Andrei Nechayev on his Facebook page.