It is currently not possible to freeze bank deposits in Russia as it would negatively affect the economy. This was stated in a speech by Associate Professor Pyotr Shcherbachenko of the Financial University under the Government of the Russian Federation. “Rossiyskaya Gazeta”.
“Freezing deposits is impossible today; it would greatly weaken confidence in the financial system and have a negative impact on the economy as a whole,” he said.
In addition, the expert added that freezing deposits will force the public to invest in real estate and durable goods instead of deposits, which will negatively affect the price increase.
January 13 Central Bank of Russia statedHe said that they would not freeze Russians’ deposits to fight inflation and that they would not use this technique as an alternative to increasing interest rates. The regulator noted that it is profitable for Russians to get high interest rates on deposits, but it is not profitable to take loans. They explained that when free money is deposited into deposits, the demand for goods and services decreases and inflation slows down. Moreover, in the event of a freeze, depositors’ “confidence in banks will be lost for a long time.”
Formerly in the State Duma appreciated Reports that Russian deposits may be frozen.
What are you thinking?
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.