IMF expects resumption of economic growth in Russia

IMF Head Christine Lagarde sees positive trends in the development of Russia and expresses concerns about the eurozone. Russia may soon come out of the recession and return to growth. However, this year, the economy is still expected to weaken, as the IMF said in its semi-annual report on Central, Eastern and Southeastern Europe. But next year there may be a reversal. Russia suffers from low oil prices, creating large holes in the budget, and also comes under Western sanctions in the context of the crisis in Ukraine.

This indicates an improvement in the investment climate in Russia, and with the right investment management it is possible to receive profits in the near future. In addition, Sberbank has issued Eurobonds that have been converted into a billion dollars. The issue of bonds is considered the most relevant for investment banks. At the same time, the US government issued a warning to its country's investment banks not to place Russian Eurobonds, as this undermines sanctions against Russia.

For the euro area, the IMF sees a continuation of the “clear risk” of economic stagnation, despite a positive start to the year, which is more surprising than regularity. The fund even considered the negative impact of the Schengen restrictions as a result of the influx of refugees and the situation with the repayment of Greece's debt. The International Monetary Fund offers long term "very low interest rates" for Athens. Eurozone finance ministers are due to meet on May 24 to draw up a restructuring plan for Greece that could secure IMF participation.

IMF demands from Athens to sacrifice pensions and abolish tax breaks. The European Central Bank, the European Commission and the IMF are proposing the preservation of three rescue packages for a total of several hundred billion euros to protect Greece from bankruptcy. The money, however, is not for the Greek population, but should be used to bail out European banks in Greece. In turn, the country must ensure radical social reforms, cost cuts and tax increases.