joyce people chose the village click your way go to the grand imperial through the george weston bush coromandel you can a letter till the closure that you see don't need to go and. read this and the colonel was such as used to retreat. talk about the headlines for. the man who exposed the news of the world phone hacking scandal has been found dead at his home as revelations and resignations keep coming they say on tuesday leading figures from neither admire the police force will be grilled by pollution and its. europe's largest economy looks at least a few opportunities to mention advantage and i'm going merkel but let's talk business in germany countries moscow's biggest trading partner is looking to further capitalize on the head. financial well it sees falling greg as

greeks sun the city to power their way out and plight in life and offering fruitful new opportunities for many million people lost their jobs in the crash. next russell central bank staff and chief tells us how america's also dive into the fault. of the countries with it. hello again a walk up to spotlight may enter a shout out to the i'll do i'll bend space to my guest is i live see you cry. the growing multi trolling us national debt makes economists say the country's default is just a matter of time but arguable tell ourselves the us economy badly hit america's

approaches including russia and the difficult times must stop its pound think every dollar ten tons afford to lose billions it's like to wash it what are the chances to see the dollar fail and the world's economies in dire straits if money really talks has begun to understand the language for his deputy head of the russian central bank and it's eight o'clock. russian central bank says the inflation rate in russia will not exceed seven percent official say the economy is recovering g.d.p. is growing but next month the u.s. will either raise the multi-trillion national debt ceiling or worse be used to pay back that and declare a technical default russia holds a hundred and twenty five billion dollars of american debt and risks losing this money economic problems in the euro zone would also need to beef up the russian economy. leave. hello mr you

can thank you very much for coming hello welcome thank you. the first question. is a statement by the u.s. federal reserve chairman. who addressed the congress saying quote if you fail to raise the u.s. debt ceiling by august the second the economic fallout could be. catastrophic end quote according to your previous statements you don't believe that the u.s. may default is that what your confidence based or. in the speech. and the wall you see this is quite a bit of policy making anyway of course a legal legal framework up to august second that should be somehow solved. and no one side suddenly republicans democrats are doing their best to somehow this

game it's absolutely clear but i myself go think that's practically they will not be in position to come to some agreement probably seventy agreement i mean you're right it's the that. fly in not so high spirits not asking about it but for some compromise and compromise or why just when the time probably could be the real compromise not so i would say that the chances to not have it is very close to zero but if even they'll be a kind of non agreement it means that for the government of united states it should be a choice what expense could be cut it could be that service and expenses but it could be some other expenses when the political choice and the last worst but not least point in that what it meant technical default it means

that some just one obligations will not be fulfilled in time. place but i do not think it will influence the magically markets it will rule includes for some limited scale but not. mexico is the thing the united states to me inflate the dollar pollutant to decrease its debt. that is the other points of this short run this is the technical problem i belittle somehow. in law and not technical a political problem the united states have two big deficits fiscal deficit and deficit of trade balance both have some correlations with the exchange rate of the currency of the dollar and a k e investment in

a little national tical will. would wise you if you have seen the difficulties with play and service in your debt you can inflate it if you have you know monetary agence you were deal with this is the way and historically we know that some countries were doing that so inflation for a different period of time. can help in that case what in the economy you have to have in mind two points stalks and floats. you can solve the problem of stocks with inflation but what about floats if you will. have the same level of fiscal deficit it means that you inflate it stops but you create a new stocks we have the influence of is called so so anyway even in this iteration of inflation the fiscal authorities have to make the serious steps of fiscal

adjustment so speaking about the probability of default well what about countries like greece or say portugal are the closer to the fall than the years much closer it is process of course. if it's much more realistic. or of the development of this creation in that countries. not only technical about some kind of. political economical different i mean interests that is dangerous but it could be managed what do i mean by managed it's not just i will not play my death it's me. you know the problem the country will talk with my current interests about the solution what could be the solution some kind of risk that arise and under that exchange of my obligation to some other obligations the conditions with the sun haircut means that

this will lose some money but just some ten percent fifteen percent twenty percent that is the point of discussion for us so it's a lot of countries a lot including russia. but by that situation and after that they have some chances for recovery for you development some of the. chances. but at that it's then before people today start talking about withdrawal of some of the countries from the euro zone like greece for example leave believe this is possible from its realistic and usual social economical it would be this is politically i do not think that the euro system and euro zone will be so easily divided into pieces a lot of rumors about about so-called core europe europe about possibility of

divided in north and south france and so forth but i do think it's only a rumor or political it's just if you don't really believe in difference and if you if you say if you do believe that they can be managed as you call it isn't it time to buy the bonds of these countries that are rated very literally or. the business business points. about. business analytics so in our practice we cannot you know stanley cohen has more on the liquid sector. ok now with the u.s. dollar and you wrote rates falling maybe we see a situation when the russian central bank has to devalue the ruble to keep russia's economy compare. because first it's very difficult point then both because the

euro you know develop it into time which are you know one by one it's very difficult or less and that means that all the commodities prices for the corn oil this will or will rise probably will rise dramatically this is the first but the second point. we. use the policy of inflation targeting and free floating of the. problem it's not the pure free floating but we are very close to me it means we do not support this so that. the rate of exchange of the rubble not in nominal noise in real terms. means that we will not be in a position to do very well you have become so this is very much dependent on the

market. market for service of the correlation in the supply demand so believe in the market and we have to see the flexible. progress so strong ruble for you is not a problem but absolutely not a lot of speculations about that but they never. see the any political and statistical the good. google drops a drug out back that today the share of bank lending of total investment into the real economy in russia is it seven percent why don't rush in banks take more active courage in the investing process worried why is credit in russia so expensive i mean one of the most expensive in the other countries. to two points the price and the amount the price the incredible suspense of but of course it's very much depends on the inflation ok when you lent money to

somebody you have to fund it or you have to get some money or money from somebody or you pay the deposit rate and somebody pay your credit rate and there is margin in the credit rate and there was a trade and that is the beggar on for your financial return it means the credit in any case the credit price couldn't be cheaper in the present price and the present is very much depend on the inflation people will not give you money if you will pay them less of the inflation so that is very much the problem that is the reason for us to be very much concentrated focused on the on the inflation so. as soon as we will be in a position to cut inflation this year though think about seven percent in perspective for two free years about five percent means that a particular kinetically of the credit rates will be go into the other part of the

story is the amount how big could be learned not there are a lot of liquidity globally and in russia also but the they increase lending but the rates of of. this increase is not that high so it's not very fast now it's around sixteen. seventy percent year to june to june sarpong sixteen percent increase in nominal terms and therefore i myself comfortable with that figure says i would say or do cry of furze that if you had of the russian side pull back the spotlight will be back shortly after so great that stay with us into. her. bag.

of solutions disciplinary on her education. the worst screw the penitentiary system transformer criminal into a log body citizen her. life behind bars on our. download the official anti allocation secured by phone i pod touch from the i choose ops to. launch on sea life on the good. video on demand copies of mine costs an r.s.s. feeds now in the palm of your. question on the calm. her. welcome back to

spotlight love and just a reminder that my guest in the studio today is to clive the first deputy head of the russian central bank and it's really kind of you mention inflation mentioned seven percent this year well it's a very interesting thing that inflation is seven percent and this is this is the the forecast for inflation this year it may be are it won't be lowered but the average deposit rate is six percent so it's lower than the inflation rate doesn't this discourage people to bring their money to banks. first the seven percent is our focus our target and you have to work with the heart. and. the then the compare the inflation and depository it's we should have a mind that could be expected inflation not today but expect inflation because the deposits for three months six months up to three years normally so in that case

we'll have to compare that position from we really believe in free press for thieves inflation will be five percent it means that six for one the presence of that that is forty one years up to now will have negative. negative for rate four for importance in real terms. but that is very much the same as all over the wall unfortunately now the period of very low globally very low rates because of the crisis of course and now have passed by the loan way of recovery after that after normalization of for all the rates so i think the keep in mind this three points now the rate the reports it's the smallest comfortable and the reflection of this comfortability is the day now nick do porn. both households have companies in the banks they grow in rather fast

. yes this year two thousand and eleven it went so fast in two thousand and ten it's because people got to spend money in our buying goods and so since then now not so much afraid about the future as in the previous crisis time you said that your aim your girl is so impressed by the end of the year but in the first six months of the year the inflation has already reached five percent so are you sure that in the in the remaining five months or so it will be two. now more than before because five instead of you know it's brilliant it's very good result i'm a so forth it could be your own five point two. you see that as a citizen or very much does not phenomena so normally in the russian economy frustum are for the year generally get your own first year percent or for the year

old inflation really. because people celebrate the new year away because of two friends first all the tariffs for for electricity gas water supply and dollars you know change transform once a year general frost so it's a big you know jump in prices process and the second yes because there are a lot of what else was. before before christmas before the year and they spend money in general so it's. the standard boat but the thought what are the normal the spirit of very low inflation partly sometimes it's a zero inflation and even this inflation i myself personally believe that accumulated this five percent for six months will have not more than zero point five june. several next few months. or so up to the beginning of the

fourth quarter the over the five point five and turned was through her for about one point five percent for. three months so the surrealistic was around this little bit but the government the russian government seems to be more pessimistic than you because they expect seven point five percent is it because is it because the pre-election time because they have planned some government spending is for the campaign or whatever you say frost i believe the government will fulfill the budget without you big spending if even they will spend some additional money in not only the additional money supply will not influence that listicle it will look influence the this year inflation it will influence next year two thousand and twelve. but right this is the second point when the point to wind their pay changed the way

they are focused i mean in the very difficult for school what are the great inferential pressure a lot of inflation expectations here and probably government analytics with the too much sensitive to this to this very situation and they change their focus. russia is planning to introduce it's still no payment system which which sounds strange because the whole world lives in these. master carrying american press and they're happy with it what is russia needed a missile would be converted it's very sophisticated problem for us i don't think that when you have your national system it doesn't mean the you do not use the other systems. ok of course our grandson pool will use reason i thought. it was. yeah but for some reasons for probably. some

facility here i mean network for arson banks and companies and households to organize to manage their permanent settlements in the way they're called to have it so the plus that is a business if somebody believes in the in the business and invest in it that's ok that's ok because it will be the business of some banks and clearance burbank another of the big banks the opposition believes but these existing payments system is the reason. they're international i mean they're the truly international they don't belong to a country anymore i mean they love what i'm getting and our bunks are members of the syrian and they will get them out of us it's absolutely different points you know but it's a patient and roll system so you know some provided of your own system of group works together well what you're saying about this initial payment system does it

imply that it will give better possibilities some some good deals some better deals to see the clients then these are probably yes versus the question mostly to the banks themselves but i believe they have some position to probably do to have better prices for four four sources than are the sons that are completed and in the country do you expect this russian these are to be accepted by major banks around the world and in america well why not why not if you will will work hard to get some results why not it will need a major advertising campaign of course of course billions pumped into this process that is the ok and now the central bank is currently bailing out the bank of moscow with a john sum of two hundred. ninety five billion rubles why is it necessary

why don't let the mosque because this may be bad example for other missionaries were is an exceptional situation of course there are suffering like them that the ration of i can any situation of a nation of banks but you see there is the problem of so-called too big to fail or to important or for all in the war to remember the sedition of women brothers the great crisis began after that. day i mean fed decided not to support the original it was a good reaction but practically. the worst followed by the very dramatic development of the situation so now all the latest given like this point ok must cause us to bicker a little bit for this is number five in the russian broken system and inconsiderate it more than one hundred and fourteen billion the post of households anyway there

are guarantees that the system will have a special deposit guarantee religious nation and deposit guarantee. seeing in russia so it could be played anyway plus some government affiliated companies and institution and especially municipal decisions of mosco keep their money then the brunt of most or also and their amount of money is also very big even bigger than the house or deposits so there is a risk for the money too if we keep all the risks which can be materialized in that the development of the situation with. to find some some balance of it if you see it so put him in the bank of moscow why would the flaws in the system discovered so late it is is there any is there problems in the super. abilities of the central

bank so i mean and so long a long story. to talk justin on the one i want to talk with you but the consideration different problem this is most of all the problem not the management previous management of the battle. and a lot of. some very specific operation provided in the interest of the top managers or the have the open side for the bad and close. but it will be. information from that class of problem the system is not know it but this problem this isn't going so fast as the problem of management such a lot so you're working on it you know you are working on this the only proving that unsettled this is a problem of the system and now we'll have some demand from the president of the russian federation for us to for the to make some proposals of what should be changed what should be done. for very briefly i believe the

simple bunker for us as a regulator supervisor have not their rights have to have it's much lesser than the rights of how that relates in the war i mean to against the onus against the lions or some of the bad banks i mean to make some specific decision professional or professional motivated decision about that so there are a lot of good practice in the world and we have to forward is good practice thank you thank you very much for being with us and just a reminder that my guest on the show was alex c. well you kind first deputy head of the russian central bank spoke like who did that with more for us than common foreigner was going on in and out of time russia and tell them they are part and take. this if.

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