Finance Minister explained why Russia is not opting for ‘helicopter money’

Credit: Dmitriy Astakhov | RIAN

Russia cannot shower people with ‘helicopter money’ because the ruble is not the world reserve currency, Finance Minister Anton Siluanov said.

According to the minister, if the ruble were the world reserve currency, then helicopter money, a monetary policy that implies direct payments to individuals, would have been an option and the government could spend trillions of rubles on it.

However, in the current situation it is essential to provide assistance to those who need it the most – to help businesses retain employees, and to help these employees pay their loans and rent.

According to Anton Siluanov, small businesses will be granted tax deferrals, as well as subsidies to pay salaries to their employees, RIA Novosti reported. The minister added that companies should be helped to quickly reopen after the lockdown.

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