The third Banking on Russia conference had a smattering of differing opinions but highlighted several issues that seemed to be of concern to foreign institutions, rather than domestic players. The current condition of the Russian banking system was acknowledged to be good, having recovered from the liquidity problems caused in the inter-bank market by the confidence crisis in June and July 2004, when the Russian central bank was forced to ease monetary policy.
Poul Thomsen, the International Monetary Fund’s former senior representative in Moscow, gave a generally positive view of the economy but rang some warning bells. “This year we are projecting growth of 6%, a significant slowdown compared to last year and it is made under the assumption that investment will start recovering. It certainly assumes no further jolts to confidence and clear signals on behalf of the government to reassure investors.”
