Most Popular
1. Dow Max Drawdown Bear Stock Market 2022 - Accumulating Deviations from the Highs - 21st Feb 22
2.Putin Starts WW3 in Ukraine, Will Use Tactical Nuclear Weapons, China Prepares Taiwan Blitzkrieg - 28th Feb 22
3.World War 3 Phase 1 - Putin WINS Ukraine War! - 25th Feb 22
5.Will There Be A 2024 US Presidential Election? - 3rd Mar 22
6.Gold and SIlver, Precious Metals Sector Is at a Terrific Buy Spot - 6th Feb 22
7.Why Putin Wants the WHOLE of Ukraine - World War 3 Untended Consequences - 6th Feb 22
8.Dow Stock Market Expected Max Drawdown 2022 - 19th Feb 22
9.Stock Market Calm In the Eye of the Inflation Storm - 4th Mar 22
10.M = F - Everything is Waving! Stock Market Forward Guidance - 7th Mar 22
Last 7 days
Why APPLE Could CRASH the Stock Market! - 21st May 22
Why Is Crude Oil Ignoring US Inventories? - 21st May 22
Here is Why I’m Still Bullish on Gold Mining Stocks - 21st May 22
US Real Estate Investors – Is There An End In Sight? - 20th May 22
How Technology Affected the Gaming Industry - 20th May 22
How To Set And Achieve Reasonable Goals For Your Company - 20th May 22
How Low Could the Amazon (AMZN) Stock Price Fall? - 19th May 22
Bitten by FANG? Clocked by Cryptos? -- 'Air Pockets' Everywhere - 19th May 22
Northern General Hospital Orthopedics Fractures and and Ankle Clinic Consultations Real Patient Experience - 19th May 22
Cathie Wood Goes All in on Teladoc, ARKK INSANE Noob Investing Strategy! - 17th May 22
This is Anything but Positive for US Housing Market - 17th May 22
What Should We Do If There Is No Fed Monetary Policy Pivot? - 17th May 22
All Possible Ways to Earn Free Litecoin - 17th May 22
How low Could the Amazon Stock Price Fall? - 16th May 22
Cathy Wood ARKK INSANITY There is NO Coming Back! - 16th May 22
NASDAQ 100 Stock Market LOWER LOWS & LOWER HIGH - 16th May 22
Sanctions, trade wars worsen US inflation - 16th May 22
AI Tech Stocks Earnings BloodBath Buying Opportunity - 14th May 22
Futures Contract – Trading Crude Oil With USO - 14th May 22
How to Get Kaspersky Internet Security for 80% Discount! Do not Pay Renewal Price! - 14th May 22
Sagittarius A* Super Massive Black Hole Monster at Centre of Our Galaxy REVEALED! - 14th May 22
UK Public Debt Smoking Inflation Gun - 13th May 22
What Happens When the Stock Market Dip Keeps Dipping? - 13th May 22
Biden Seeks Inflation Scapegoats; Gold Advocate Wins GOP Primary - 13th May 22
Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - 12th May 22
The War on Gold Ensures the Dollar’s Downfall - 12th May 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Soviet Investors Seeking $900 Billion in Compensation From Russian Ministry of Finance

Economics / Global Debt Crisis Dec 02, 2009 - 01:29 PM GMT

By: Pravda


Recently, Russian officials remembered about the lost Soviet investments and decided to significantly increase compensation to the investors. For the first time after recognizing Soviet investments as internal debt, the Russian Ministry of Finance will repay 3 Russian rubles per each Soviet ruble, instead of the previous 2:1 scheme. The state cumulative investments debt is estimated to be $900 billion. Experts doubt the fairness of the new repayment scheme and believe that the rates of 1:30, 1:80 and more would be more appropriate.

According to Nezavisimaya Gazeta newspaper, the Ministry of Finance released new compensation rules that are directly linked to investors’ age. For example, people born before 1945 will receive three-fold compensation based on their accounts balances as of June 20, 1991.

The main issue the investors have with the Ministry of Finance is that instead of developing a schedule for final repayments of investments counting inflation, the Ministry is offering bizarre schemes with symbolic sums of money. The ministry is not discussing the final date of the repayments either. Both independent specialists and the Ministry representatives explain that the state budget does not have enough money to provide adequate compensation.

“Two- or three-fold compensation cannot completely cover the losses of Soviet investors. Yet, despite the increase in the budget deficit, the government cannot completely discard the repayments since this step will not be popular,” said Timur Unarokov, leading consultant of Intercom-Audit.

The age-based compensation suggested by the Ministry of Finance also raises questions. “It is impossible to understand why those who were born before 1945 will be paid three-fold, while those who were born starting 1946 will be paid two-fold,” said Natalya Borzova, Deputy Director of FinExpertise.

The “fairness” that the Ministry of Finance is trying to implement, is criticized by many economists. “Honestly, the payments must be based on realistic indexes, for example, minimum consumer baskets of 1991 and today. A fair scheme would also consider interest,” explained Sergey Shandybin, analyst of Razvitie group.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Pravda Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in