Arab Today, arab today russia offers 10 billion for eurozone bailout
Last Updated : GMT 09:06:14
Arab Today, arab today
Arab Today, arab today

Russia offers $10 billion for Eurozone bailout

Arab Today, arab today

Arab Today, arab today Russia offers $10 billion for Eurozone bailout

Moscow - Ria Novosti

Saving Europe is becoming something of a popular global trend. Arkady Dvorkovich, economic adviser to the Russian president, told a RIA Novosti briefing on Monday that Russia was ready to help stabilize the European economy via the IMF. The government indicated it was ready to allocate up to $10 billion. It looks like Russia has followed China\'s lead, after China offered to join the European Financial Stability Facility (EFSF) - the bailout fund created to fight the debt crisis currently plaguing Europe. Why is Russia so keen to rush to Europe\'s aid, and how badly does Europe need Russia\'s money? Geopolitical issue \"Europe\'s continued stability matters to us,\" Dvorkovich told RIA Novosti. \"Europe is our biggest trade and investment partner. If Europe is unstable, Russia\'s economy will also enter a phase of instability.\" But will Russia\'s $10 billion make much of a difference in resolving the debt crisis? Europe certainly needs more money, from Russia, China, India or anyone who offers. But $10 billion is a drop in the ocean compared with the volume of funds being spent to cure Europe\'s ailments. \"How can $10 billion make a difference when they are discussing programs costing over trillion euros?\" said Bank of Moscow analyst Kirill Tremasov. Dvorkovich repeatedly said there was \"enough money\" while explaining his optimism about the future of Europe\'s economy at the news briefing. Experts believe that, by offering aid to Europe, Russia is more concerned with its own geopolitical ambitions than it is with Europe\'s recovery. According to Yury Danilov, director of the Stock Market Development Center foundation, the rest of the BRICS plan to take an active part in dealing with Europe\'s problems, so it is important that Russia keeps up with them. \"This is an issue of Russia\'s geopolitical role. The BRICS nations are rapidly augmenting their share of the global economy, while their role in global politics remains insignificant. Getting involved in instruments such as the EFSF and IMF might help restore this balance,\" Danilov said. China seems to be the keenest to bridge this gap - the world\'s second largest economy, it certainly has ambitions of gaining commensurate political weight. This ambition could also be achieved by expanding its presence in international organizations that control financial flows. China\'s growing role in the IMF and other financial groupings was one of the most discussed topics at the first G-20 summits, Danilov said. \"China wants to influence the process and is generally geared toward dominance, not only in the markets but also when it comes to political instruments,\" said Yelena Matrosova, macroeconomic research director at BDO International. Better than squandered China\'s motivation is clear. But does the Russian economy match up to its leaders\' ambitions? Russia does not rank as one of the world\'s top ten economies, and its share of global GDP is barely above 2%. China accounts for 9%. And then there are immense structural differences between the two economies. But there is something Russia and China do have in common: both have \"superfluous\" money. China has accumulated cash which can\'t be invested domestically because the Chinese economy is already suffering from overinvestment. Russia also has reserves put aside for a rainy day. These funds won\'t be put to use anyway, Danilov said, careful not to suggest that Russia\'s economy doesn\'t need the money. The ineffective system of spending and oversight essentially devalues both government and individual investments. \"Government investments don\'t offer a return due to high corruption levels, embezzlement and so on. It seems wiser to invest abroad, even state funds,\" Danilov said explaining the officials\' rationale. By sending financial aid to Europe, Russia is in fact placing its reserves in foreign currency-denominated instruments, while at the same time achieving its political ambitions. But Tremasov also noted that Russia builds up these reserves in order to have saving, not turn a profit. \"We view these rainy day funds as insurance against future economic crises, against plummeting oil prices. I don\'t think we should get carried away investing in risky European assets,\" he added. On the other hand, he said direct acquisition of Italian or Spanish bonds would pose the highest risk, while the IMF mediation must hedge risks to some extent. \"This is an opportunity that can and must be considered,\" Tremasov concluded.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today russia offers 10 billion for eurozone bailout Arab Today, arab today russia offers 10 billion for eurozone bailout

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday