welcome thank you a well first question considers a statement by the u.s. federal reserve chairman very blokey who addressed the congress saying a quote if you fail to raise the u.s. debt ceiling by august second the economic fallout could be catastrophic and quote according to your previous statements you don't believe that the u.s. may default on its debt what's your confidence based on. in the speech if. you see this is quite a bit of policymaking anyway of course a legal legal framework up to august second that should be somehow solved. and no both sides and the republicans democrats are doing their best to somehow we in this game this absolutely clear but i myself no think that's practically

they will not be positioned to come to some agreement probably seventy agreement i mean two or is the that. cut off why not so high. asking about but for some compromise in a compromise or why in just a when the time probably could be the real compromise but 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 the united states it should be a choice what the expenses could be cut it could be the debt service and expenses but it could be some other expenses one more political choice and the last and last but not least point in that what it meant technical default it means that some. one obligations will not be fulfilled in time.

it could take place but i do not think it really will influence the magically markets. to influence for some limited scale but not all magically do you thing the united states may inflate the dollar diluted to decrease its debt. that is the point so let's shut on this is the technical problem i believe it will somehow be solved in law iran could not technical a political problem the united states have two big deficits fiscal deficit and deficit of that balance both have some correlations with the exchange rate of the currency of the dollar and a k d investment in a little connection with the co will. would wise you if you have seen the

difficulties with pain and service in your debt you can inflate it if you have. monetary agence if you feel 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 but in economy you have to have in mind two points stocks and flaws. you can solve the problem of stocks with inflation but what about floats if you. have the same level of fiscal deficit it means that you inflate it stocks but you created new stocks we have the floats of fiscal so anyway even in this situation deflation the fiscal afford it is have to make the serious steps of fiscal adjustment side so speaking about the probability of default well what about

countries like greece or say portugal are they closer to default than the is much closer it has problems of course. it it's much more realistic. or alist the development of this ration in that countries not only technical about some kind of political economical default i mean interest that. it's dangerous but it could be managed what do i mean by managed it's not just i will not pay my debt is me as you know the problem a country will talk with my creditors about the solution what could be the solution some kind of arising on the debt exchange of my obligation to some of the better conditions with some clear cut it means that the current this will lose some money but just some ten percent fifteen percent twenty percent that is the point of

discussion of it so it's a lot of countries a lot including russia. you know bust by that situation and after that they have some chances for recovery for new development some of them use the chances and go out. but the targets then before people today start talking about withdrawal of some of the countries from the euro zone like greece resample do you believe this is possible from it's quiet on realistic and usual social economical and it would be this is politically i do not think that the euro system the euro zone will be so easily divided into this is a lot of rumors about that about so-called core europe benefiting europe about possibility of divided in north and south of france and so for but i do think it's

only or more political it's already if you don't really believe in defaults and if you if you say if you do believe that they can be managed as you put it isn't it time to buy the bonds of these countries that are rated very little today or that that is the business business points about it about that. business analytics so in practice. we did not you know focused on the tone of august more on liquidity and safety of the west. ok now with the u.s. dollar and you wrote rates falling maybe we see a situation when the russians central bank has to devalue the ruble to keep russia's economy competitive. because first it's very difficult point and both yours and your well you know develop it into time. and one by one

it's it's very difficult on us and that means that all the commodities of the prices of all the commodities will or will rise probably rise dramatically this is the first point the second point. we. will pursue the policy of inflation target and free floating of the. problem it's not the pure free float it but we are very close to it it means we do not support this so that. the rate of exchange of the rubble not in nominal nor in real terms and that we will not be in a position to devalue the value of the currency this is very much dependent on the market market for service of the correlation of the supply and demand so believe in market and we pursue the flexible. policy so strong ruble for use not

a problem. not a lot of speculations about that but i never. see. any and the let it on statistical is good good good drops about about that today the share of bank lending of total investment into. the real economy in russia is that seven percent why don't rush and banks take a more active part in the investing process worry why is credit in russia so so so expensive i mean it's one of the most expensive in developed countries. to two points the price and the amount the price the critical suspense of but of course it's very much depends on the inflation. you when you lend money to somebody you have to fund it or you have to get some money money from

somebody or you pay the deposit rate and somebody pay your credit and this margin the credit rating that was a trait that is the background for your financial return it means credit in any case kind of price couldn't be cheaper the deposit price and the present by is very much dependent inflation people will not give you money if you will pay them less than 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 i will think about seven percent in perspective for two three years about five percent. of the particular to much sickle of the credit trades will be going down 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. of this increase is not very high so it's not very fast now it's around sixteen seventeen percent year to year june to june that surround sixteen percent increase in nominal terms and therefore i am i so. off the wall with the figure who says i didn't say or do chi your first deputy head of the russian side fullback spotlight mooted back shortly after this war breaks out stay with us then go. to. the solution disciplinary punish her education. work. to the penitentiary system transform

a criminal into a law abiding citizen her. life behind bars on r.t.e. . download the official anti up location the phone on pod touch from the choose our. lunch on life on the go. see video on demand parties in line costs and r.s.s. feeds now in the palm of your. question on the dot com. welcome back to spotlight algal love and just a reminder that my guest in the studio today is alex you look out for the first deputy head of the russian central bank mr because of you mention inflation

mentioned seven percent this year well it's a very interesting thing the inflation is seven percent this is this is the the forecast for lation this year it may be our or 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 bearings. first the seven percent is of course target and will have to work very hard to get it then. we then the comparator the inflation and deposit rates we should have in mind that could be the expected inflation not today but expected inflation because the deposits were for three months six months up to free years normally so in that case you have to compare that position if we really believe in free space for two years

inflation will be five percent it means that six for one deposits not about. a second thought one yes up to now will have negative. negative for rate four for you pauses in real terms. but that is very much the same as all over the wall unfortunately now in the period of very low globally the law or eights because of the crisis of course and now have to pass by the long way of recovery after that after the motivation for all the rates so i think that keep in mind these three points now the rate of deposits the smallest comfortable and the reflection of this conflict ability is the day nomic of dupont. it's of both households and companies in the banks they grow in rather fast. yes this year two thousand and eleven it's not so fast as the falls and

it's because people begin to spend money you know buying goods and services they're not so much afraid about the future as in the previous crisis time you said that your aim. is seven percent inflation and the idea that the. in the first six months of the year or so the inflation has already reached five percent so are you sure that in the that in the remaining five months or so it will be two . now more than before because five know it's brilliant it's a very good result i'm a so forth it could be around five point two. you see that is seasonal very much seasonal phenomena so normally in the russian economy first model for the year generally get your own thirty percent of all the yield inflation really what happened because people celebrate the new year what because of two

friends first all the tariffs for for electricity gas water supply doubtless you know change transform once a year general frost so it's a big jump in prices first and the second here yes because there are a lot of one losses. before before christmas before the year and they spend money actively in january so it's. the standard but the fourth quarter the normal the spirit of very low inflation partly sometimes this is zero inflation and it when there's inflation so i myself personally believe that accumulated this five percent for six months will have not more than zero point five zero zero. several next three months july. so up to the beginning of the fourth quarter of the year we'll have not more than the five point five and still

higher for about one point five percent for. three months so the surrealistic are listed as well 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 any you'll be expended if even they will spend some additional money in not on that additional money supply will not influence the listicle it will not influence the inflation it will influence next year the house and the militia ok this is the second point then the third point of the wind there they changed the date they're focused i mean in the will have very difficult for school what are the great information

a lot of inflation expectations this year and probably the government analytics to do much sensitive to this to this very situation and they change their forecast russia is planning to introduce it still no payment system which which sounds strange but because the whole world lives in these wells master card american express and they're happy with that what is russia needed some payments this will be competitive it's very sophisticated problem for us i do not think that when you have your national system it doesn't mean the you do not use the other systems. of course banks and the people who use a visit must like. everything going to the wall. yet but for some reason so have probably. facility here i mean network for arson

banks and companies and households to organize to manage their permanent settlements in the way they're gold to have it so and plus that is a business if somebody believe in the business and invest in it the that's ok that's ok because it will be the business of some banks including. the big banks that position but these but these existing payments system is reason to press their international i mean they're the truly international a don't belong to a country anymore i mean they belong to one of the euro and our bunks are members of the system and they will get them out of us it's absolutely different points you know but it's a patient and well systems and you know some provide enough your own system works together well what you're saying about this national payment system does it imply that it will give better possibilities some some good deals some better deals still

to the clients than these probably yes this is the question mostly to the banks themselves but i believe they have some position to probably do to have better prices for four for sources than the sun so to compete with in the country do you expect this russian these are to be accepted by major banks around the world and in a matter of time 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 that billions put into this project 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 necessarily why don't let the bank of moscow done it because this may be bad example for other

russian banks were is an exceptional situation of course there's something like more than that ration like in any situation of a nation of banks but but you see there is the problem of so-called to big to fail or to important of all in the wall during member this edition of dimon brothers the great crisis began after that. day i mean fat decided not to support up for actual it was a good reaction to practically. the worst followed by the very dramatic development of the situation so now all the regulator skip in might this point ok bank of moscow is too big for a little bit to fail this is number five in russian by the system and it considered it more than one hundred and thirty billion the post of households anyway there are guarantees that this system will have a special deposit guarantee religious lation deposit guarantee.

say in russia so it could be paid in a way plus some government i think that is the company as an institution and it specially a municipality of moscow keep their money then the bank of moscow also and the amount of money is also very big even bigger than the household deposits so that has a risk for that money too if we keep all the risks which can be materialized in that the development of the situation with. have to find some some balance of it if you say so put him in the bank of moscow why were the flaws in the system discovered so late it is is there it is their problem isn't the super. it's an ability of the central bank so i mean it's a long long story. of the talked just didn't. want to talk

with you but there are considerations different problem this is most of all the problem of the management previous management of the battery. and a lot of. some very specific operation provided in the interest of the top managers and the have the open side to the bad and close to the bad but it could be. information from that clause so there are a lot of problems the system is a the no no it's but this problem this is a trust is a problem of management such a low so you know working on it you know your way is the only proving that the second this is a problem of the system and now we'll have some mom from the president of the russian federation for us to make some proposals and much of the change will be done. before very briefly i believe if the central bank of russia as a regulator supervise have not their rights have to have it's much lesser than the

rights of other waste in the walled i mean to against the onus against the managers of the bad banks i mean to make some specific decisions professional professional in the divided decision about that so there are a lot of good practice in the ward and we'll have to fall though it is good practice thank you thank you very much for being with us and just to remind you that my guest on the show was i like see where you kind first deputy head of the russian central bank spotlight will be back with more first time comment on was going on in and out of time until then they are party and take it it as

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the man who exposed the news of the world phone hacking scandal is found dead at his home as revelations and resignations keep coming. europe's largest economy looks to russia from new york. to talk business in germany. and financial seas farming grab. some in the city to combat pay out to plight. on air and online twenty four hours a day welcome to the program this is our team. whistleblower who exposed the news

of the world phone hacking scandal has been found dead sean hoare was a journalist of the shamed newspaper claimed that it has knew what was happening and encouraged reporters to do it he was found dead at his home and police are treating it as unexplained but not suspicious. named his former editor andy coulson for knowing about illegal hacking which he denies but later on tuesday rupert murdoch his son james and his former u.k. executive back of books are going to face the wrath of tradition please be asked to explain the scandal that's rocking the press corps establishment and the police to its core as a lower average reports it's a blow to britain's a very good police force off a string of high profile errors in recent years. ian tomlinson died in london's g. twenty protest in two thousand and nine after being pushed to the ground by p.c. simon harwood harwood's said he'd been prevented from giving first date by a baying bottle throwing more but he later admitted that happened happened john

schollers damon as as shot by police in a london underground station in two thousand and five officers allegedly leaked a report saying he'd fled from police c.c.t.v. images later showed this wasn't true. less well known is michael daugherty a man who went to the police for help only for it to turn into a calf to ask where both allegedly false statements and mistreatment. i obviously have no protection from the door in this country i think is completely outrageous daugherty told police he suspected his thirteen year old daughter was being groomed by a paedophile concerned they referred it to his local station sex crime unit then nothing after two weeks doctors he phoned the unit secretary that's when the trouble started just greece riots in american history about my house that's all just there.