Russia wary on financial prospective amid Greek debt crisis

08:57, May 13, 2010      

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Russian Deputy Finance Minister Sergei Storchak on Wednesday warned of the necessity to thoroughly follow the possible excessive capitals inflow to Russia that might be triggered by ongoing financial turmoil in Europe.

"Hot money will likely rush out of the euro-nominated assets to the emerging markets, including the Russian one," said Storchak during the financial conference in Moscow on Wednesday.

The high-ranking official believed that the Russian society was currently "on a cross-road" between the Western-style consumption model and an alternative model he called "rationalistic," news agencies reported.

In particular, Storchak warned against so-called express-financing because, in his opinion, this practice contradicted the very basics of banking principles.

Storchak called for imposing a formal ban on this kind of financial operations.

Personal express loans were widely popular in Russia before the global financial crisis hit the country's economy. The banks routinely handed out the loans while bothering very little about the financial background of the borrowers and their capability to repay the loans.



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