– In Last 9 Months Russia Repaid $100 Bn of Debt (Russia Insider, April 15, 2015):
Painful in the short term, but not exactly weakening Russian economy in terms of debt to GDP
This article originally appeared at True Economics
With Q1 out of the way, Russia passed a significant milestone in terms of 2015 external debt redemptions.
In total USD36.647 billion of external debt matured in Q1 2015, the highest peak for the period of Q1 2015 – Q3 2016. Even controlling for inter-company loans and equity positions, the figure was around USD24 billion for Q1 2015, again, the highest for the entire 2015 and the first three quarters of 2016.
Here is the breakdown of maturing external debts:
All in, over the last 3 quarters alone, Russia has managed to repay and roll over USD156.23 billion worth of external debt, with net repayment estimated at around USD96.5 billion.Painful in the short run, this is not exactly weakening Russian economy in terms of forward debt/GDP and other debt-linked ratios.
The returns for paying down debt (from 33% – 32% of debt to GDP) has been a consistent growth in the value of their currency up 24% in the last year.
The only time a devalued currency is a good thing is when governments are bilking all the wealth out of a country…..then, they do as they have done here in the west……..sold that lie over and over again to the fools who listen to their mendacious media.
Now that our dollar buys nearly nothing, when food, shelter and energy costs consume all the funds US workers can spend………..well, then it is too late……
Now, it starts becoming obvious even to the sheep…….Russia is on the right financial path, while ours is nearly completely under water.