Low-income countries were at risk after the introduction of restrictive measures, the head of the Russian state noted.
Russian President Vladimir Putin spoke at the G20 summit about the serious threat of the consequences of the pandemic on national currencies. Devaluation threatens countries in which the costs of combating coronavirus are rising, but tax revenues are declining.
Putin explained that attracting debt resources in the domestic market and the reserves in the country helped to support citizens and business in Russia. He clarified that such an opportunity is far from all countries. Many developing economies are experiencing problems due to lower fiscal revenues and the need to spend significant amounts on the fight against coronavirus.
He explained that countries in which two-thirds of borrowings are denominated in dollars are most at risk. The national currencies of these states are threatened by the devaluation and growth of public debt, Putin said.
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