We are at the start of a global recession (President of the Black Sea Trade and Development Bank)

The COVID-19 pandemic will determine an economic contraction, probably the greatest after the Great Depression of 1929, and the recovery will be decided by the length of this period of blockage, says Dmitry Pankin, President of the Black Sea Trade and Development Bank (BSTDB).

"We are at the start of a global recession. It's clear that the decrease of economic activity, the closing of shops and factories, the nearly complete elimination of tourism, hospitality and transport services will have a powerful impact on the economy and will deteriorate both public finance, as well as the corporate financial status. As such, it's possible we will face, in the second half of this year or next year, a financial crisis. The economic activity is easier to stop than it is to reconfigure and restart. We will need time," said Dmitry Panking, in a release of the bank sent to AGERPRES.

"If the pandemic will close out until the end of June, there are good hopes for a speedy recovery, meaning economic and financial activity will return to normal in the next 12 months," said Dmitry Pankin.

"We are already recording a blockage due to reduced economic activity. Production will contract both due to the social distancing measures imposed as well as due to the decrease in the demand for long-term goods, industrial, investment goods and non-essential services," Dmitry Pankin claims.

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution founded by 11 states in the Black Sea region: Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine. Its central headquarters is in Thesalloniki, Greece. The bank supports economic and regional development through the granting of loans, credit lines, capital and guarantees for projects and through commercial financing in the public and private sectors of the member states. BSTDB benefits from an "A-" long-term rating granted by Standard and Poor's (S&P) and "A2" granted by Moody's. AGERPRES