PRIME-TASS. There are no conditions at the moment in Russia for a short-term capital inflow, MDM-Bank board chairman Oleg Vyugin said in an interview with Prime-TASS.
“It has always been worldwide that capitals flow easily into real estate and liquid assets, only then into direct investments, which are always in need. Currently, we do not see a big appetite for short-term investments in Russian real estate or equities. The appetite does exist, but it is very limited. This is so because, opposed to India and China, investors do not see any economic achievements in Russia. If they were, the bubble would have blown very rapidly," Vyugin noted.
According to him, if the Russian economy expands around 5—7% a year, “we’ll see this bubble”.
Vyugin believes that in 2010 Russia will experience a net capital inflow, although, in line with the central bank’s official forecast, a net capital outflow has been expected so far. “As for payments relating to the leverage, the situation looks settled, everything going quite smoothly, but there are some options for fund-raising on capital markets. Businesses want to lower the debt burden, therefore preference is given to initial public offerings. It is known that all the money RusAl raised from GDR placement was spent to repay the aluminum giant’s liabilities. Several more major companies with the same goal will go public by summer," he said.
