Moscow has been discreetly funding heavy war costs with risky, off-budget debt. But the scheme has caused major problems—with more likely to follow—offering useful leverage to Ukraine and its allies.
As someone living in Moldova, I'd LOVE to believe Russia is approaching economic collapse.
What happens next?
I've been reading reports that the war was economically unsustainable since just after it started, but still it continues. So what are the signs that the breaking point has been reached, what should we look for to see that the final stage has been reached? And what would that collapse look like?
Loved the in depth analysis, but I'd love to see "what happens next" even more.
in Chapter 2 it says - "But for these borrowers, support is often taking the form of interest rate subsidies, where the borrower pays a fixed rate well below the normal market rate and the state pays the lending bank the difference between the market rate and the “preferential” rate "
so the interest rate spread covered by the state should be showing up in the government budget ? Alternatively the banks providing these subsidized loans should have lower savings/deposit rates for their depositors and/or lower profitability vs banks not involved in subsidized loans ?
As someone living in Moldova, I'd LOVE to believe Russia is approaching economic collapse.
What happens next?
I've been reading reports that the war was economically unsustainable since just after it started, but still it continues. So what are the signs that the breaking point has been reached, what should we look for to see that the final stage has been reached? And what would that collapse look like?
Loved the in depth analysis, but I'd love to see "what happens next" even more.
in Chapter 2 it says - "But for these borrowers, support is often taking the form of interest rate subsidies, where the borrower pays a fixed rate well below the normal market rate and the state pays the lending bank the difference between the market rate and the “preferential” rate "
so the interest rate spread covered by the state should be showing up in the government budget ? Alternatively the banks providing these subsidized loans should have lower savings/deposit rates for their depositors and/or lower profitability vs banks not involved in subsidized loans ?