Russian regions unable to downpay debts

In the course of the last five months, overdue credits for Russian regions have increased from 4.2 billion RUB to 62.2 billion RUB.

The economic crisis heightens pressure on Russian regional economies. Over the last five months, Russian regions have increasingly become dependent on credits and federal aid. At the same time, a higher number of regions are unable to meet credit obligations. According to newspaper Vedomosti, overdue loans have increased from 4.2 billion RUB to 62.2 billion RUB. In the same period, the Russian government has stepped up transfers to the region. A total of 539.9 billion RUB was transferred to the regions in the period, which is 34,5 percent more than in the same period last year. The federal money now amounts to almost a quarter of the regions’ total incomes, the newspaper writes.

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