Fears rise on Russian foreign debt
Posted by WARREN MOSLER on February 23rd, 2009
Yes, the risk of Russian corporate defaults due to governmental difficulties goes with the territory.
Fears rise over Russia’s foreign debt
by Catherine Belton
Feb 22 (Financial Times) — Western bankers are increasingly anxious about Russian companies’ ability to repay $500bn in foreign corporate debt after the government said this month it was suspending a $50bn bail-out programme due to dwindling reserves. Bankers are demanding clarity after Igor Shuvalov, first deputy prime minister, said in a closed-door briefing this month that Russia was going to switch focus from bailing out tycoons to supporting the banking system.
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