Posted on 10/25/2024 8:54:41 AM PDT by marcusmaximus
A longtime ally of Russian President Vladimir Putin has predicted that the majority of Russian companies could go bankrupt due to the increasingly high interest rate.
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Chemezov criticized the Russian central bank's elevated key interest rate, which, following his comments, was raised by an additional two percentage points on Friday to a record 21 percent.
"There is no 20 percent profitability anywhere. Maybe in the drug trade, but even the sale of weapons does not bring such a profit," he said.
Chemezov said that the high key interest rate drives up borrowing costs for businesses, which hurts their profitability, including Rostec's.
"It is simply not profitable for enterprises to use borrowed funds, as I have already said many times. It is just that if we continue to work like this, then practically the majority of enterprises will go bankrupt," he said.
He added that high-tech companies with longer production cycles are particularly impacted, as they only receive advance payments of 30 to 40 percent from customers and have to cover the rest with a loan.
(Excerpt) Read more at newsweek.com ...
You mean like businesses have been collapsing and going bankrupt in this country for the past 3+ years?
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