A sound banking system, a moderate bad debt level, prompt recognition of the problem which bad debts pose and dealing with them effectively, are essential preconditions of not only financial stability and depositor protection but also of economic growth.
Putting off an increase in the retirement age has cost Russia cuts in spending on development and increased pressure on the workforce. The next step is to estimate how much the budget will gain from the reform and to find the most effective way to use this money.
The large-scale National Priority Project in housing has the potential to cause an accelerated increase in real estate prices, household debt, and banks’ credit risks. Moreover, explosive market growth could give way to a slump when the Project comes to an end.