Remember when Russia defaulted back in 1998? Remember what kind of shock that sent in the financial sector.
From AFP newswire just now, no link.
Russia denies reported debt rescheduling
by Stuart Williams
ATTENTION - ADDS quotes from official ///
MOSCOW, Feb 10, 2009 (AFP) - Russia on Tuesday denied it was
seeking a rescheduling of 400 billion dollars in corporate debt from
foreign banks after a press report unleashed a new flurry of concern
about its economy.
The head of the Association of Russian Banks, Anatoly Aksakov,
was quoted in Japan's Nikkei daily as saying Russian banks and firms
had asked the government to allow a restructuring of 400 billion
dollars (308 billion euros) in debt.
The report, which raised fears of Russian default, sent shivers
through financial markets and weighed on the value of the euro as
European banks are the institutions most exposed to Russian
corporate debt.
"The information published in Nikkei is not correct. The
statement that Russia is negotiating a restructuring of corporate
debt does not correspond to reality," said Prime Minister Vladimir
Putin's spokesman Dmitry Peskov, according to the RIA Novosti news
agency.
Aksakov also said that he had been misquoted by the Japanese
financial daily.
"Individual borrowers can have negotiations about restructuring
debts on their own but I know nothing about a large-scale,
centralised initiative," Russian news agencies quoted him as
saying.
But he confirmed that he had written a letter to Deputy Prime
Minister Igor Shuvalov, the government's pointman on the economy,
asking the government to act as mediator with foreign banks on the
issue of corporate debts.
"If a Russian company needs a restructuring of its external
debts due in 2009... the Russian government must be the moderator of
that process along with Russian and foreign creditors," Aksakov
said.
"There can be no talk of a default," he added.
"The majority of Russian companies and banks have built up
considerable currency reserves which allow them to fufill their debt
obligtions even ahead of time."
While Peskov and other officials including President Dmitry
Medvedev's top economic advisor Arkady Dvorkovich issued denials to
defuse the situation, the confusion highlighted concerns about the
Russian economy.
The country has been hard hit by the financial crisis and the
government said last week it would inject 40 billion dollars (31
billion euros) in new capital in Russian banks to help them through
the crisis.
Renaissance Capital analysts said in a research note titled
"Much ado about nothing" that 128 billion dollars of debt -- not 400
billion dollars -- are due to be repaid by Russian banks and firms
in 2009.
"It looks like one of those 'lost in translation' stories that
is already being backtracked on," added UralSib chief strategist
Chris Weafer.
The report had weighed heavily on the euro as European banks are
considered by analysts to be heavily exposed to Russia, dealers
said.
In late morning trade, the European single currency fell to
1.2924 dollars from 1.3002 dollars in New York late on Monday.
In 1998 Russia was brought to the brink of economic meltdown
when the government defaulted on its sovereign debt.
Russia's leaders have vowed that while the current economic
crisis will be tough there will be no repeat of the catastrophic
situation of 1998.
Bonus article:
http://www.reuters.com/article...ws/idUST35061020090210
If this happens in the next few weeks / we may officially enter a depression before 2009 year is out, a 10% contraction. Oh, and Asia, the principal debtor to Russia (good thing Putin hates us and limited his purchasing of T bills) is going to experience events like nothing before.
From AFP newswire just now, no link.
Russia denies reported debt rescheduling
by Stuart Williams
ATTENTION - ADDS quotes from official ///
MOSCOW, Feb 10, 2009 (AFP) - Russia on Tuesday denied it was
seeking a rescheduling of 400 billion dollars in corporate debt from
foreign banks after a press report unleashed a new flurry of concern
about its economy.
The head of the Association of Russian Banks, Anatoly Aksakov,
was quoted in Japan's Nikkei daily as saying Russian banks and firms
had asked the government to allow a restructuring of 400 billion
dollars (308 billion euros) in debt.
The report, which raised fears of Russian default, sent shivers
through financial markets and weighed on the value of the euro as
European banks are the institutions most exposed to Russian
corporate debt.
"The information published in Nikkei is not correct. The
statement that Russia is negotiating a restructuring of corporate
debt does not correspond to reality," said Prime Minister Vladimir
Putin's spokesman Dmitry Peskov, according to the RIA Novosti news
agency.
Aksakov also said that he had been misquoted by the Japanese
financial daily.
"Individual borrowers can have negotiations about restructuring
debts on their own but I know nothing about a large-scale,
centralised initiative," Russian news agencies quoted him as
saying.
But he confirmed that he had written a letter to Deputy Prime
Minister Igor Shuvalov, the government's pointman on the economy,
asking the government to act as mediator with foreign banks on the
issue of corporate debts.
"If a Russian company needs a restructuring of its external
debts due in 2009... the Russian government must be the moderator of
that process along with Russian and foreign creditors," Aksakov
said.
"There can be no talk of a default," he added.
"The majority of Russian companies and banks have built up
considerable currency reserves which allow them to fufill their debt
obligtions even ahead of time."
While Peskov and other officials including President Dmitry
Medvedev's top economic advisor Arkady Dvorkovich issued denials to
defuse the situation, the confusion highlighted concerns about the
Russian economy.
The country has been hard hit by the financial crisis and the
government said last week it would inject 40 billion dollars (31
billion euros) in new capital in Russian banks to help them through
the crisis.
Renaissance Capital analysts said in a research note titled
"Much ado about nothing" that 128 billion dollars of debt -- not 400
billion dollars -- are due to be repaid by Russian banks and firms
in 2009.
"It looks like one of those 'lost in translation' stories that
is already being backtracked on," added UralSib chief strategist
Chris Weafer.
The report had weighed heavily on the euro as European banks are
considered by analysts to be heavily exposed to Russia, dealers
said.
In late morning trade, the European single currency fell to
1.2924 dollars from 1.3002 dollars in New York late on Monday.
In 1998 Russia was brought to the brink of economic meltdown
when the government defaulted on its sovereign debt.
Russia's leaders have vowed that while the current economic
crisis will be tough there will be no repeat of the catastrophic
situation of 1998.
Bonus article:
http://www.reuters.com/article...ws/idUST35061020090210
If this happens in the next few weeks / we may officially enter a depression before 2009 year is out, a 10% contraction. Oh, and Asia, the principal debtor to Russia (good thing Putin hates us and limited his purchasing of T bills) is going to experience events like nothing before.
what are you rambling about? It's just my prediction, just like he has his.
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