Expert: We expect bankruptcies and rising unemployment

The extension of “holidays with pay” will mean the ruin of small enterprises and massive layoffs, ex-Minister of economy of the Russian Federation, doctor of Economics Andrei Nechaev. As stated by the expert to the correspondent of “Rosbalt”, in a more stable situation will remain unless the public sector.

“If we talk about the budget, it should be understood that if the failure price of oil, which was in the last days, would be preserved for a long time, it would be a disaster. But today, the rumors about a possible agreement between the US, Saudis and Russia the price of oil rose. Let’s see which trend will eventually prevail,” said Andrei Nechayev.

In the economy, not related to the state budget, extended “vacation” would mean a continuation of the fall, stated the expert.

“The latest measures, which are now announced by President Vladimir Putin, will take just devastating, because in a month the business is one that falls under the restrictions — would not have the turnover, revenues, income, and expenses he has to bear, the salary — to pay. Small and medium businesses who have no financial reserves and easy accessibility of the loans, definitely will not stand. But I think that big business will continue to experience serious problems. Therefore, we can expect the destruction of a significant part of the business and a jump in unemployment,” said Andrei Nechayev.

Recall that in his address to Russians on April 2, Vladimir Putin announced April hours while maintaining salaries.

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