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Marat Sultanov: Single currency in EEU can lead to bankruptcy of banks

«Introduction of a single currency in the countries of the Eurasian Economic Union can lead to insolvency and bankruptcy of participants of the banking system," ex-chairman of the National Bank of the Kyrgyz Republic Marat Sultanov said at the conference «Formation and development of the banking system of Kyrgyzstan: challenges and solutions.»

According to him, it is too early to introduce a single currency. Marat Sultanov is sure that this shouldn’t be done if all parties want to preserve the EEU.

«When all the countries of the union reach a balance, then one can think of the introduction of a single currency. While the income level hasn’t been matched, the issues of fiscal policy and the capital market haven’t been resolved, it’s better not to talk about it yet," he said.

«We need to grow up. Kyrgyzstan should grow economically. In addition, with due time, our structure of fiscal policy should align with other EEU countries. The tax system in Russia and Belarus should be adapted so that Kyrgyzstan can also develop the economy quickly enough," Marat Sultanov said.

He added that there is a sad experience of other countries, including Greece. After its entry into the EU, economic problems in the country arose.

«It’s good that there is a stabilization fund that supported it. If they were not part of the Eurozone, they would solve these issues through monetary and currency policies. But they couldn’t do it. I don’t want such problems to arise in the EEU," the ex-head of the National Bank concluded.

Marat Sultanov is sure that it is possible to return to the issue of introducing a single currency without risks for Kyrgyzstan only in 20–25 years.