“Everyone escaped as could”
Direct speech: you as default experienced?
August 17, 1998, the state acknowledged the inability to pay its debts. Central Bank and the government announced the expansion of the currency corridor from 6 to 9.5 rubles/$, the three-month moratorium on the payment of Bank debt to foreign creditors and freezing all payments on t-bills and Federal loan bonds before the end of the year. Immediately after that, the dollar rate in exchange offices increased from 6.2 to 9-10 rubles/$. And the banks were unable to timely fulfill obligations to depositors. “Kommersant” has asked businessmen and financiers, as they have experienced a default.
Vladimir Shcherbakov, President of “Avtotor”invest:
— This day we went bankrupt. In late 1997, we have built in the Kaliningrad plant and began to produce cars Kia. It went well. We had $150 million European and Korean loans, we believed that the calm will return all debt incurred for construction of the plant. And then two days, Saturday—Sunday, 6 RUB dollar was worth 24 rubles.
We have debts grew so that it became absolutely clear that it’s hopeless: we sold the car. At the site pre-assembled and unassembled state was 5 thousand cars, which suddenly became more expensive four times, and the population was left without money, because banks all slipped. In mid-1999, we introduced an external control, by the time we were not paid salaries for nine months.
Managed to collect all of the creditors, brought them to the factory and proposed two options to choose from. Either everyone chooses what he likes — spindle wrench who gets what, and spending. Either all become shareholders, and we will make every effort to get out of this situation. Eventually managed the situation, and in order to survive, people sometimes wages were given potatoes.Mr Servicesresearch company “Avtotor”invest
Natalya Kaspersky, CEO InfoWatch, in 1998, the General Director of Kaspersky Lab.:
We then all went very smoothly. Our “Kaspersky Lab” in 1998, one year old, and I just headed it. By happy coincidence, shortly before the default, we took the money from the Bank, which was not very big, but still account. And it was the Bank MENATEP, which is by default collapsed. Of course, we began to save: cancel allowances, where possible, tightened their belts. When we first started to export its products abroad, and we went to the currency earnings, so the dramatic failure of the ruble has played into our hands.Natalia kasperskaya in 1998, the General Director of Kaspersky Lab
Alexander Kalinin, President of all-Russian public organization of small and medium entrepreneurship “OPORA Russia”, in 1998, the businessman:
— I remember very well the default because with very great difficulty experienced it. I was in charge of the company involved in the import of household appliances, office furniture, finishing materials. In stock I had much more than $1 million, and after only a month I had significantly more than $1 million.
The Bank “Smolensk”, where I had collapsed, with the result that there was lost a lot of money. I was in shock. It is very difficult out of this situation. Well, I was then able to negotiate with suppliers and sign long installment payments. Then, many felt that the devaluation will be. The country is virtually ruled, so everyone had to escape as best they could.Alexander Kalinin in 1998, businessman
Andrei Nechayev, a former economy Minister, in 1998 the President of the Russian financial Corporation:
— Has gone through everything with sadness. At some point, the Corporation was in a very difficult position, especially as we had foreign currency loans and investments in t-bills took up a large part of the portfolio. But, fortunately, managed to get out somehow.
Honestly, a big surprise took place then did not. We knew that at the state level were made a series of strategic and tactical errors, on the one hand, and on the other, the situation was affected by the adverse external environment.Andrey Nechaev, in 1998, the President of the Russian financial Corporation:
Garegin Tosunyan, President, Association of Russian banks:
— A week before the default we were going to have it with Yegor Gaidar, Andrei Kozlov (first Deputy Chairman of the Central Bank.— “B”) and Boris Fedorov (Director of the State tax service of the Russian Federation.— “Kommersant”). Our idea was to offer vzaimopomoshhi the debts on the interbank market, to identify addebitare and nadograditi. We, the Central Bank this is quite a long discussion.