IMF lowers Russian GDP growth forecast to 7.1%

Russia will see its GDP growth fall to 7.1%, according to Paul Thomsen, the head of the IMF mission in Russia.

He says capital outflow is likely to continue and banks and companies will have problems refinancing their foreign commitments.

However the IMF says Russia’s Central Bank has taken all necessary steps in response to the financial problems.

Mr Thomsen added that there were no systemic risks in the Russian banking system which may change soon for the better soon.

“The world will see some more consolidation of medium sized banks and reguional banks and what we’ll probably see some more withdrawals of licsenses from very small banks that have got into trouble. I think it’s going to be done in a very orderly manner,” Mr Thomsen said.