Russia indicated on Wednesday it would switch from bailing out individual companies to supporting the economy through the banking sector. Moscow also plans huge budget cuts in an attempt to limit its fiscal deficit – rejecting pressure to follow the US and other western countries to try to stimulate the economy with a big boost in public borrowing. The proposals suggest that Moscow is losing hope it can stave off the crisis with public spending and is instead preparing for what might be a prolonged recession.

This entry was posted by Gwen Robinson on Thursday, February 5th, 2009 at 5:47 and is filed under Capital markets. Tagged with russia. Edit this entry.