Neviolina called not to waste resources on supporting unprofitable companies and let them die.
The so-called structural restructuring of the economy is running out of resources, so it's time to stop wasting them on supporting unprofitable projects and companies, suggested the chairwoman of the central bank, Elvira Nabiolina. "If the economy is operating with limited physical and labor resources, this is probably not the best time to insist on carrying out projects whose profitability is achieved only through cheap financing. This is obviously not the wisest use of available investment opportunities," she said in the State Duma.
The head of the central bank urged not to fear layoffs in problematic companies. Business surveys show that capacity utilization is close to last year's highs, and unemployment, according to Rostat, remains at a historic low for the second year - 2.2% last year and in the first three quarters of this year. Layoffs are happening all over the country, "it always hurts", but since unemployment has not increased, "it means that people find work in other factories", Nabiolina believes. But "is it necessary to support the owners of inefficient factories to preserve those jobs if they produce unprofitable products", according to her, "this is a very big question".
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