Lagarde Says Russia May Be Hurt by Bank Withdrawal of Liquidity

Russia’s economy may be hurt by a potential withdrawal of liqudity by west European banks and swings in oil prices, International Monetary Fund Managing Director Christine Lagarde said.

“The key priority is to rebuild fiscal buffers while oil prices are still high,” Lagarde said in speech at Moscow’s State University of the Ministry of Finance today. She urged the government to resist “public pressure” to boost spending “because public spending is not a very healthy disease, especially at election time.”

To contact the reporter on this story: Henry Meyer in Moscow at hmeyer4@bloomberg.net

To contact the editor responsible for this story: Paul Abelsky at pabelsky@bloomberg.net

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