Back then, several dozens of banks went bankrupt. Among the larger ones, there were only a few which I was not linked with whether as a shareholder, creditor or as requested by the government.
-Having been closely connected with banking: what do you think of the European Central Bank money printing and other activity these part years?
We are participating in a very interesting macroeconomic experiment – nobody knows what will be happening. I think that in 2008 there were not many other options to stabilise the banking system. But, thereby the genie was let out of the bottle – a whole lot of money and liquidity. A few months back, the book came out by the former UK central banker Mervyn King, «The End of Alchemy», which is critical regarding how the banks were managed in 2008. In the book, he profoundly states that by increased money and liquidity, we pull tomorrow’s consumption into today.
If you loan a lot of money because you want a house, a car, and a vacation, then the next ten years you cannot buy anything as you are paying the debts of today. The same will happen with the economy, especially in Europe. And, finally, you have this peculiar structural problem. The euro is very convenient but it requires responsibility from all participants. This means that certain Southern-European countries ought not to borrow so much and should collect taxes from the people who are able to pay them. People in Germany are saving money and use it to finance the consumption by Greeks. This is a vicious circle. The European Union needs a much more balanced economy than it currently has.
Ralf-Dieter Montag-Girmes
Studied at Cologne languages institute and had his Master’s from Oxford University. Having graduated, worked for five years in the military.
Before going to Russia to serve as vice director of privatisation centre, worked at Boston Consulting Group.
In 1997, he became Fleming Banking Group investment banking head in Moscow.
In 1998, founded the company ARQ. In 2001–2006, sat on board various «difficult» banks. Currently, mainly involved in airplanes leasing.
In November 2015, he was published to be ready to invest €52m into the Latvian national airline airBaltic.