Developing Market Expert Says the Effect of Worldwide Bailout Package Unknown on Rapidly Developing Economies
Development Bank Fund Chairman Alexander Mirtchev Advises a "Wait and See" Attitude While Expressing Confidence in Energy-Focused Economies
WASHINGTON, DC--(Marketwire - October 13, 2008) - Today, Dr. Alexander Mirtchev,
founder and chairman of the Krull
Corporation and an economic expert on emerging markets, expressed
uncertainty on the numerous bailout packages established by European
nations and the United States. Dr. Mirtchev is also the chairman of
Kazakhstan's development bank, Kazyna.
"One effect of these bailouts that appears unclear is how they will affect
emerging markets, which are at present the source of highest economic
growth in the world," said Dr. Mirtchev. "Some emerging
markets, such as Korea, Russia and Kazakhstan, that are essentially
dollar-based economies, have a pronounced liquidity problem -- the local
banks, which dominate the market, do not have enough cash to maintain their
existing debt obligations, and there are no visible options for obtaining
additional external financing. Other emerging markets, such as Brazil,
Chile and Argentina, have a more cash-rich banking basis, and the dearth of
liquidity will not be so visibly felt for a much longer period -- in other
words, the period of economic slowdown in these countries would either be
prolonged or economic recovery would come much later."
Other emerging market players have worried the bailout instituted by the
U.S. and European governments will give a demonstration to those
governments that have been slow to institute market principles in their
economies that they might not have been in the wrong. Dr. Mirtchev said, "It would
provide banks and institutions that should have died a natural death a
'stay of execution' that would irreversibly extend the downward pressure on
the local economies, thus lengthening any economic downturn that these
economies may be suffering due to the fact that the surviving banks that
hold bad assets will continue to hold those bad assets for a longer period
of time."
Dr. Mirtchev did express
confidence in the long-term stability of energy-rich economies such as
Russia, Bolivia, Mexico, and Kazakhstan. He asserted that with the concept
of increased debt by U.S. and European countries, investors would look
toward productive assets such as oil. Dr. Mirtchev also made comments on
the oil issue to Focus Washington's Chuck Conconi, the interview can be
viewed at www.youtube.com/focuswashington
For more information, visit www.KrullCorp.com.
About Krull Corporation
Krull Corporation is a Washington,
D.C.-based advisory and project management firm with expertise in dealing
with economic growth, industrial expansion and restructuring issues.
Founded by Dr. Alexander Mirtchev in 1992, Krull Corporation capitalizes on his
extensive professional experience in market developments and reforms and
focuses primarily on emerging and transitional economies. Over the years,
the firm has provided its clients with outstanding strategic guidance and
professional services in various areas. Combining a unique blend of global
reach and understanding of local markets, Krull is able to consistently produce
high quality results and returns.
Contact Information: Contact:
Matt Lauer
Qorvis Communications