Russia's biggest bank chief shared tough news about the country's money troubles during a major business meeting. German Gref runs Sberbank and knows economic problems when he sees them. He told business leaders that Russia deals with many serious challenges right at this moment. The banker called these difficulties a perfect storm hitting the economy hard. Gref used to work for the government before taking over bank operations.
High interest rates create the biggest headache for companies trying to make money. Businesses struggle when borrowing costs go through the roof and eat away at profits. Gref warned that these rate problems could hurt economic growth for the next two or three years. Companies cannot expand when loans cost such extreme amounts of cash. The situation makes planning future investments almost impossible for most firms.
Russian productivity falls way behind other advanced nations around the world. The country produces 40 percent less than developed economies and sometimes four times less output. Workers and factories cannot match the efficiency levels seen elsewhere. Gref thinks this gap creates a chance for smart business leaders who want to improve operations. Companies can use these hard times to cut waste and make their work processes much better.
High interest rates create the biggest headache for companies trying to make money. Businesses struggle when borrowing costs go through the roof and eat away at profits. Gref warned that these rate problems could hurt economic growth for the next two or three years. Companies cannot expand when loans cost such extreme amounts of cash. The situation makes planning future investments almost impossible for most firms.
Russian productivity falls way behind other advanced nations around the world. The country produces 40 percent less than developed economies and sometimes four times less output. Workers and factories cannot match the efficiency levels seen elsewhere. Gref thinks this gap creates a chance for smart business leaders who want to improve operations. Companies can use these hard times to cut waste and make their work processes much better.
