Russia May Borrow from World Bank to Cover Deficit

Russia intends to borrow capital from international markets next year and could call on a credit from the World Bank to cover part of the budget deficit, said Finance Minister Alexei Kudrin.

Bonds issued by the Russian Government will be purchased mainly by banks and pension funds, said Kudrin. Country’s budget deficit could be greater than the government estimates that lies somewhere in the 7.4% of GDP, said Minister of Finance in April.

Meanwhile, hundreds of thousands of people from former Soviet republics who have emigrated to work in Russia have left without jobs because of economic crisis, which affects not only the former billionaire oligarchs, but also immigrants.

The most affected area in Russia is the construction industry. Construction of hotels, blocks of flats and real estate developers cannot access credit or cash. Migrant workers, who earned about $ 500 per month on sites in Moscow, are now back home, or in some cases, remain stuck in the capital, Russian companies not paying their outstanding wages.