Russia Banking Sector Report

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Russia Banking Sector Report  

• Market Reports On Russia

www.marketreportsonrussia.com
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Summary
This report provides an overview of Russias
economic and banking sector overview through
February 2014. The report includes discussion of
recent political turmoil in Ukraine and the
effect it has on Russian economy. The Central
Banks economic forecasts, monetary policy, as
well as extensive description of banking system
developments in 2013.  In its latest monetary
and credit policy report the Central Bank of
Russia (CBR) revised the GDP growth forecast for
2014 from previous x to x.x-x.x. This estimate
also includes a x.xppt estimated positive effect
from Sochi 2014 Winter Olympics. The growth
forecast for 2015-2016 was also cut from previous
x.x-x to x.x-x.The stagnation in the economy
continues, but it is expected to be over in
Qx/xx-Qx/xx. EconMin hopes that starting in Qx
the dynamics will turn around in such segments as
machinery manufacturing and food processing. GDP
growth in Qx/xx is forecasted at x. The CBR did
not yet revised its x inflation target for
2014.    

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The crisis in Ukraine has raised the risks to
Russia's already weakening economy presented by
currency depreciation and capital flight, Fitch
Ratings says. The situation is still highly
unpredictable but Russia's sovereign credit
profile is robust and events so far do not have
implications for the country's 'BBB' rating,
Fitch Ratings informed.  The rouble has now
fallen around x against the dollar this year,
partly driven by fears across emerging markets
about the impact of US tapering, but also on
Russia-specific concerns about low growth and the
weakening current account surplus, and in
anticipation of further liberalisation of the
exchange rate regime, Fitch points out. Russia's
already strong sovereign balance sheet is
characterised by low sovereign debt levels and
high international reserves (around USDxxxbn in
late February).      
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Sovereign net foreign assets equivalent to xx of
GDP provide an ample buffer against external
shocks, supporting the rating. These are
sufficient to cover gross external financing
needs more than three times over. The Reserve
Fund, the government's main fiscal buffer,
contains USDxxbn (x.x of GDP), giving Russia a
cushion against a drop in demand for its
sovereign debt. Key Points  GDP growth in
January seen at x.x y/y, EconMin sees GDP growth
in 2014 below x Fitch and Moodys believe
crisis in Ukraine to have negative effect on
Russian Economy   The international reserves of
Russia decline by x y/y in February CBR raises
main interest rate as RUB drops due to military
involvement in Ukraine Capital outflow from
Russia grows by xx to USD xx.xbn in
2013.      
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Contact
022.27810772, 27810773 Email id
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Contact No 91.22.27810772, 27810773
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Table of Contents

1. Stakes high in Ukraine as Putin authorises
   military option
2. EconMin GDP growth estimated at x.x y/y in
   January.
3. EconMin GDP growth not to exceed x in 2014.
4. Officials speak of stagflation.
5. CBR sees positive effect of Sochi Olympics worth
   x.xppt of GDP.
6. Fitch affirms Russia at BBB, outlook stable
7. Fitch Crisis to Weigh on Russia Economy
8. Moodys Russias uncertain position on Ukraine
   is credit-negative.
9. Russias budget surplus at x.x of GDP in
   January.
10. Russia's international reserves down x y/y to
    USD xxxbn in February.
11. Russias external debt up by xx in 2013 - CBR.

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27810773 Email info_at_marketreportsonchina.com
 
Contact
022.27810772, 27810773 Email id
info_at_marketreportsonrussia.com
Contact No 91.22.27810772, 27810773
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27810773 Email info_at_marketreportsonchina.com
 
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Report Contact Us Toll Free US
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Contact No 91.22.27810772, 27810773
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