Posted by WARREN MOSLER on February 23rd, 2009
Yes, the risk of Russian corporate defaults due to governmental difficulties goes with the territory.
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.