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4 Sep, 2007 06:58

Standard and Poors: Russia not that vulnerable

Ratings agency Standard and Poors has released a report saying Russia is less vulnerable to a global liquidity crisis than many of its neighbours.

The survey took in 15 developing countries in Europe, the Middle East and Africa.

Standard and Poors' Associate Director of International Public Finance told Business Today how they arrived at that conclusion.

“In the liquidity vulnerability index we included measures of external liquidity, external financial position of the country and re-financing risks. Russia’s position is strong enough because it’s reserves are high, they are exceeding $US 400 BLN while the current account surplus is relatively strong at 8% of GDP. The roll-over needs are low at 10% of GDP and the need to re-finance these risks in 2007 is estimated around 1% of GDP, which is extremely low compared to peers,” commented Felix Ejgel from Standard & Poors.