| BUSINESSWEEK ONLINE : APRIL 26, 1999 ISSUE | ||||||||
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| INTERNATIONAL -- EUROPEAN COVER STORY
Getting By Somehow Russia's banking system has collapsed, and the government is again on the verge of default on $17.3 billion due foreign creditors. Normal credit is unavailable, so Russians have improvised new ways to buy goods, pay wages, and settle tax bills IOUs Redeemable for commodities or cash, companies issue them to suppliers or to the government in lieu of tax payments. Most trade regionally, while Gazprom IOUs trade all over the country. COMPANY COUPONS Companies issue coupons or credit cards to their employees in lieu of ruble salaries for use in company stores and sometimes other outlets in the city of issue. BARTER Companies and individuals swap goods or services, often with the help of specialists who earn commissions for setting up complicated transactions involving dozens of exchanges. OFFSETS Lacking cash to pay bills, companies agree with each other, or with local governments, to cancel out mutual debts. Workers who receive no salaries live rent-free in company housing. DOLLARS As a hedge against 81% inflation and with the ruble down 75% since last August, Russians keep their savings in dollars at home. Russian dollar holdings are estimated at $35 billion. DATA: BUSINESS WEEK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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 Russia: What Happens When Markets Fail (int'l edition) EUROPEAN COVER IMAGE: Russia: What Happens When Markets Fail TABLE: Financial Crisis GRAPHIC: Winners and Losers in a Russian IOU Trade INTERACT E-Mail to Business Week Online | |||
