RUSSIALINK: “Russians’ Debt Burden Hits Record High – Central Bank” – Moscow Times
The share of income Russian borrowers have to spend on repaying debts hit a record high at the start of 2021, according to Central Bank data […]
» Read moreTag: Debt
JRL NEWSWATCH: “Relentless rise of consumer debt in Russia fuels bubble fears for some” – Reuters/ Darya Korsunskaya, Elena Fabrichnaya, Tatiana Voronova
“… After five years of shrinking real incomes, many Russians are borrowing to make ends meet or even just to pay off their creditors – and the issue is climbing up the political agenda. … Some 2.5 million people earning up to 20,000 roubles ($303.09) a month … less than half the average wage, spend more than half of that […]
» Read moreRussians Living on Loans Face Credit Crunch This Fall, Financial Analyst Says
(Paul Goble – Window on Eurasia – Staunton, July 28, 2019) The economic situation of the large number of Russians who have sought to maintain their earlier standard of living by taking out loans is about to get much worse, financial analyst Igor Nikolayev says, because in the coming months, the government plans to make it more difficult for them […]
» Read moreRUSSIALINK: “Visa and Mastercard May Soon Exit Russia Under Draft Law – Reports” – Moscow Times
(Moscow Times – themoscowtimes.com – July 12, 2019) New Russian payment system laws could lead the world’s largest credit and debit card companies Visa and Mastercard to exit the country’s market, the Kommersant business daily reported on Friday. U.S.-based Visa and Mastercard stopped servicing bank cards in annexed Crimea after the United States imposed sanctions on Russia in 2014. Russia […]
» Read moreJRL NEWSWATCH: “Ukraine oligarch urges Volodymyr Zelensky to default on debt; Concern grows over Igor Kolomoisky’s influence on the novice president” – Financial Times/ Max Seddon
“… Zelensky should … reject[] the [IMF] austerity programme and default[] on … external debt, according to his contentious oligarch supporter[] Igor Kolomoisky … [a suggestion that] will ring alarm bells with … western backers even though … Zelensky … said he would stick to the terms of Ukraine’s $3.9bn bailout. Concern among Ukrainians and western officials about … Kolomoisky’s […]
» Read moreIn Search of Better Quality of Life, Russians Lean on Credit
(Moscow Times – themoscowtimes.com – Evan Gershkovich – February 16, 2019 – themoscowtimes.com/2019/02/16/in-search-of-better-quality-of-life-russians-lean-on-credit) Voronezh wasn’t cutting it. Artyom had been out of college for four years, and job openings in the southern Russian city were sparse. Last fall, in search of better employment opportunities, he headed north to St. Petersburg. But the journey wasn’t cheap. “I needed money for the […]
» Read moreJRL NEWSWATCH: “Officials get somber on GDP growth” – BMB Russia/ Bear Market Brief
“… Oreshkin cited … one-off factors such as an increase in oil production and a dangerous boom in consumer borrowing as unsustainable sources of 2018 growth. … tr[ying] to refocus the discussion on structural reforms …. [and] a massive investment drive via national projects in infrastructure, demography, health, education, and exports …. Nevertheless, to the extent that the high 2018 […]
» Read moreIntroduction of Personal Credit Scores in Russia Seen Helping Banks and Consumers
(Paul Goble – Window on Eurasia – Staunton, August 28, 2018) In the first quarter of 2018, Russian banks turned down 48 percent of applicants for loans and charged those who did get them higher rates than they otherwise might because the banks had no good way to ensure that they were only offering loans to those who would repay […]
» Read moreJRL NEWSWATCH: “U.S. to impose ‘crushing’ set of sanctions on Russia’s debt and oil” – bne Intellinews/Ben Aris
“A proposed ‘crushing’ bipartisan bill introduced by the … Senate … will not be debated until … autumn and many … harsh terms could be considerably watered down, Luis Saenz, … co-head of equities at BCS Global Markets said …. [The] bill … targets Russian debt and energy companies, designed to punish Russia for interfering in the U.S. presidential election, […]
» Read moreInterfax: Sovereign debt sanctions may cause brief volatility, no real effect on economy, financial stability – Nabiullina
ROSTOV-ON-DON. Feb 1 (Interfax) – U.S. sanctions targeting Russian sovereign debt, if introduced, might lead to short-term volatility on the sovereign debt market, but would not have a substantial effect on the economy or financial stability, Central Bank Governor Elvira Nabiullina said. “We saw this risk previously, we see it now. We evaluated it, evaluated the effect of two possible […]
» Read morePutin Offers Debt Relief to 42 Million Russians Before Elections
(Moscow Times – themoscowtimes.com – December 21, 2017) Vladimir Putin’s draft proposal to provide debt relief to a third of the Russian population before next year’s presidential elections is breezing its way through the Russian parliament. Kremlin officials are hoping for a 70 percent turnout with 70 percent of votes cast for Putin as president. A Levada poll published earlier […]
» Read moreDebt and poverty: the thriving business of high-risk moneylenders in Russia; In Russia, loansharks and payday lenders masquerade as “microfinance” organisations to attract clients. But for many people, short-term loans are a way of life.
(opendemocracy.net – Ewa Dabrowska – December 12, 2017) Ewa Dąbrowska is PhD researcher at the University of Amsterdam. She focuses on the Russian financial system and microfinance in the post-Soviet space. “Avoid multiple loans. With several loans you are at greater risk of over-indebtedness,” warns the Warsaw-based Microfinance Center in a recent education campaign directed at users of microcredits in […]
» Read moreNEWSWATCH: “Russia to become a net borrower for first time in a decade” – bne Intellinews
“… Russia has been dipping into its rainy day Reserve Fund to cover the federal budget deficit but this fund is due to run out of money sometime next year. Now the government is actively preparing to dip into its other sovereign fund, the National Welfare Fund, that was set up to meet future pension payments, but now will be […]
» Read moreA Year After $18 Billion Debt Deal, Ukraine Is Hardly Better Off
(Bloomberg – bloomberg.com – Natasha Doff – August 29, 2016) [Charts here bloomberg.com/news/articles/2016-08-29/a-year-after-18-billion-debt-deal-ukraine-is-hardly-better-off] A year after Ukraine averted default by reaching an agreement with creditors to restructure $18 billion of debt, the country’s bond market is again beginning to veer off course. After outperforming all of emerging Europe in the first seven months of the year, some of those gains […]
» Read morePutin Debt Binge Indulged While Russia Looks Good Next to Europe
(Bloomberg – bloomberg.com – Vladimir Kuznetsov, Natasha Doff – July 20, 2016) No one’s complaining about record debt in Russia next year as an influx of foreign investors helps the government borrow its way out of recession. The Finance Ministry plans to quadruple domestic debt issuance to $20 billion in 2017 to fund a growing budget shortfall and avoid depleting […]
» Read moreWhy is Russia borrowing money on the foreign markets?
The Russian Finance Ministry has issued 10-year Eurobonds worth $1.75 billion with an annual yield of 4.75 percent. What is Moscow hoping to achieve with the issue, who has lent money to Russia, and how likely are they to get their money back? These and other questions are answered here. (Russia Beyond the Headlines – rbth.ru – ALEXEI LOSSAN, RBTH […]
» Read moreNEWSLINK TASS: “Russia will not back IMF aid program to Ukraine if it fails to consider debt requests”
NEWSWATCH: “As Russians Struggle to Pay Bills, Debt Collectors Mimic the Mob” – New York Times
They have stripped and sexually abused a woman, severely burned a toddler by firebombing a house and broken a woman’s pinkie as a warning. Gang members, bandits, mobsters? … These are debt collectors, a peculiarly Russian variety … flourishing amid the country’s economic turmoil. … With unpaid debts mushrooming, collection has turned into something of a blood sport reminiscent of […]
» Read moreNEWSWATCH Reuters: “Russia Grants Ukraine’s Request to Delay Eurobond Case Defense”
Russia has agreed to allow Ukraine extra time to file its defence with a British court … Russia filed a lawsuit … demanding repayment of the $3 billion Eurobond …. Ukraine insists Russia must accept restructuring terms agreed with other foreign creditors. … Ukraine had until March 19 to file its defence although it was granted an extension until April […]
» Read moreNEWSLINK Kyiv Post: “IMF ready to continue supporting Ukraine”
Russia’s in the red: As Russia’s personal debt crisis spirals out of control, collectors are turning to violence to ensure people pay on time. These stories aren’t for the fainthearted.
(opendemocracy.net – Sean Guillory – April 14, 2016) Sean Guillory lives in Pittsburgh, where he hosts the SRB podcast, a weekly podcast on Eurasian politics, history and culture, and blogs at seansrussiablog.org. You can follow him on Twitter @seansrussiablog. At this point, I should be numb to Russian horror stories. But several days ago, the following story struck a chord, […]
» Read moreNEWSWATCH: “Russia’s Most Important Bank Needs a Bailout. VEB faces task of paying off about $20 billion in foreign-currency debt.” – Wall Street Journal
When the Russian government needed to build up infrastructure in … Sochi ahead of the 2014 Winter Olympic Games, it turned to Russia’s most important lender: Vnesheconombank, the country’s state-owned development bank. … eventually holding the equivalent of at least $2.9 billion in overdue loans. … the bill is coming due. VEB for years kept its books in balance by […]
» Read moreThe Russia-Ukraine Bond Dispute: Another Frozen Conflict?
Subject: The Russia-Ukraine Bond Dispute: Another Frozen Conflict? Date: Sun, 6 Mar 2016 From: Peter Clateman <pclateman@yahoo.com> Transnational Dispute Management transnational-dispute-management.com This article will be published in a future issue of TDM (2016). Check website for final publication date for correct reference. This article may not be the final version and should be consideredas a draft article. About TDM TDM […]
» Read moreThe Russia-Ukraine Bond Dispute: Another Frozen Conflict?
Subject: The Russia-Ukraine Bond Dispute: Another Frozen Conflict? Date: Sun, 6 Mar 2016 From: Peter Clateman <pclateman@yahoo.com> Transnational Dispute Management transnational-dispute-management.com This article will be published in a future issue of TDM (2016). Check website for final publication date for correct reference. This article may not be the final version and should be consideredas a draft article. About TDM TDM […]
» Read moreUkraine President Urges Coalition to Decide on Cabinet, Premier
(Bloomberg – bloomberg.com – Daryna Krasnolutska – February 29, 2016) Ukrainian President Petro Poroshenko ruled out an early national election and urged a majority coalition in parliament to decide on a new cabinet to end the worst political crisis since deadly street protests ousted Kremlin-backed leader Viktor Yanukovych in 2014. “We don’t have the time because it will mean half […]
» Read moreNEWSWATCH: “A Pyrrhic Victory for President Poroshenko” – Atlantic Council/Anders Aslund
… February 16, the Ukrainian parliament deemed the performance of its government unsatisfactory with 247 votes, but only 194 parliamentarians voted for a no-confidence measure. The government did not fall … this strange vote may appear a victory for … Poroshenko, but it seems a Pyrrhic victory that may have broken the ruling coalition in parliament and brought Ukraine closer […]
» Read moreNEWSLINK: “The Future of Ukrainian Small Farmers under Threat under the IMF Mandate” – Oakland Institute
Russians Spend More Than They Earn For First Time Since 1998
(Moscow Times – themoscowtimes.com – February 10, 2016) The spending of Russians exceeded their income in 2015 for the first time in 18 years, the Kommersant newspaper reported Wednesday, citing the Center of Macroeconomic Analysis and Short-term Forecasting. According to the Rosstat state statistics service, the expenditures of Russians exceeded their revenues by 418 billion rubles ($5.3 billion). In 2014, […]
» Read moreNEWSLINK: “IMF warns it may halt cooperation with Ukraine” – Kyiv Post
Personal Debt in Russia Up 30% in 2015
(Moscow Times – themoscowtimes.com – February 9, 2016) The amount of personal debt in Russia rose by about 30 percent, last year according to deputy director of the National Bureau of Credit Histories Vladimir Shikin, the rusnovosti.ru news website reported Monday. “In 2015 we saw a rise in personal debt, both in rubles and as a percentage of the volume […]
» Read moreUkraine Bond Rout Worsens on Bets Political Tussle to Block Aid
(Bloomberg – bloomberg.com – Natasha Doff – February 8, 2016) Ukrainian bonds slid, sending the yield on the nation’s shortest-dated restructured debt above 11 percent for the first time, as a political shakeup raised the likelihood for further delays to an international bailout that’s keeping the country afloat. The $1.15 billion of bonds maturing in September 2019 dropped 2.22 cents […]
» Read moreNEWSLINK: “Ukrainian Corruption Could Endanger IMF Loan” – Transitions Online
NEWSLINK Forbes/Kenneth Rapoza: “American In Charge Of Ukraine’s Finances Thinks Russia Debt Deal Doable”
NEWSLINK: RBTH/Gazeta.ru: “The volume of Russia’s foreign debt decreases by $83.7 billion in 2015”
After Default to Putin, What’s Next for Ukraine-Russia Bond Row
(Bloomberg – bloomberg.com – Natasha Doff and Marton Eder – December 20, 2015) A two-year feud between Ukraine and Russia is on the verge of being played out in a London courtroom after the government in Kiev defaulted on $3 billion in bonds. Ukrainian President Petro Poroshenko followed through on months of threats on Friday by reneging on the debt […]
» Read moreIMF Says Ukraine Bond Owned by Russia Is Official Sovereign Debt
(Bloomberg – bloomberg.com – Andrew Mayeda – December 17, 2015) The International Monetary Fund’s executive board ruled that a bond sold by Ukraine to Russia should be considered official sovereign debt, putting pressure on Ukrainian officials to start restructuring talks with their Russian counterparts. Russia bought a $3 billion bond from the government of former Ukrainian President Viktor Yanukovych in […]
» Read moreRussian analysts: IMF response to Ukraine debt hurts global finance system
The International Monetary Fund has allowed lending to countries that are in arrears on their debts to sovereign creditors. This decision will allow the fund to continue the program of assistance to Ukraine, even if the country does not return the $3 billion it owes to Russia. Russian experts claim the new policy undermines the foundations of the global financial […]
» Read moreMedvedev: Russia is capable of surviving recession without aid
In his annual interview to five of the country’s leading television channels on Dec. 9, Russian Prime Minister Dmitry Medvedev tackled topics ranging from the economy to defense, corruption, Crimea, and Ukraine’s $3 billion debt. RBTH presents a selection of highlights from the interview. (Russia Beyond the Headlines – rbth.ru – Igor Rozin – December 9, 2015) On economics “The […]
» Read moreUkrainian government must take important political decisions in view of its obligations to IMF – U.S. Vice President Biden
KYIV. Dec 7 (Interfax) – The United States Vice President Joseph Biden has stressed the need for Ukraine to make important political decisions in the context of its obligations to the International Monetary Fund (IMF). The parties talked about the very important implementation of Ukraine’s obligations to the IMF with the aim to continue the assistance, Biden said at a […]
» Read moreLavrov: U.S. admits lack of prospects of restoring Ukrainian solvency
(Interfax – November 7, 2015) By having refused to guarantee Ukraine’s debt as part of Russia’s proposal to restructure it, the United States effectively admitted the absence of prospects of restoring its solvency, Russia’s Foreign Minister Sergei Lavrov said in an interview with Interfax. “We were ready to restructure Ukraine’s $3 billion debt at much more advantageous terms than those […]
» Read moreDebt repayment falters as ruble stays unsteady
Amid continuously falling incomes, debt help groups thrive as Russians turn to different solutions to repay loans. (Russia Beyond the Headlines – rbth.ru – ANNA KUCHMA, RBTH – December 2, 2015) In the past year, arrears on loans have reached record levels. Borrowers are finding it more difficult to repay their loans due to the steep devaluation of the ruble […]
» Read moreRussia Pushes IMF for Response, Won’t Send Debt Offer to Ukraine
(Bloomberg – bloomberg.com – Olga Tanas – November 20, 2015) Russia, which has previously refused to negotiate with Ukraine over restructuring its $3 billion Eurobond, is waiting for the International Monetary Fund to respond to its proposal to change the terms on the debt and expects the cash-strapped country to initiate new talks if it’s unable to pay in full […]
» Read moreUkraine Rebuffs Putin’s Offer to Restructure Russian Debt
(Moscow Times – themoscowtimes.com – November 20, 2015) Ukrainian Prime Minister Arseniy Yatsenyuk has rejected Russia’s restructuring proposal for the repayment of Kiev’s eurobond debt, and said the “aggressor state” should accept the same terms as other bondholders. The “basic conditions” that must be included in any debt restructuring plan include a 20 percent reduction on the face value of […]
» Read moreRIA Novosti: One in six Russians overwhelmed by debts – poll
(RIA Novosti – Moscow, November 6, 2015) The majority of Russians are unsatisfied with their financial situation, and nearly each one in six is overwhelmed by a large amount of debts, according to a survey conducted by the National Financial Research Agency. Some 17 per cent of citizens complain about an enormous amount of debts. The percentage of those having […]
» Read moreNew bankruptcy law may bring Russians relief from debt collectors
(Russia Beyond the Headlines – rbth.ru – OLEG YEGÓROV, SPECIAL TO RBTH – October 26, 2015) Debt collectors in Russia often exceed their authority and resort to bullying, intimidation and even physical violence in order to force individuals to pay. However, a new law on individual bankruptcy is designed to help borrowers avoid such unpleasant encounters, though critics fear it […]
» Read moreAll creditors bar Moscow back Ukraine debt restructuring
(Business New Europe – bne.eu – bne IntelliNews – October 15, 2015) Private creditors have voted in favour of Ukraine’s $18bn debt restructuring deal, while Russia – which holds a $3bn bond due in December – refused to vote, Kyiv’s Finance Ministry said in a statement published on October 15. “The ministry is pleased to announce that all sovereign and […]
» Read moreNEWSLINK Wall Street Journal: “Ukraine Threatens Russia With Legal Action Over Debt. Prime minister gives Moscow two-week deadline to restructure $3 billion bond”
Ukraine Sees IMF Bailout Continuing Even With Russia Bond Unpaid
(Bloomberg – bloomberg.com – Natasha Doff, Lyubov Pronina – October 5, 2015) Ukrainian Finance Minister Natalie Jaresko said she’s optimistic the International Monetary Fund will continue its aid program even if the war-torn nation breaches the lender’s policy by going into arrears on payment of a $3 billion bond owed to Russia. Support from the Group of Seven industrialized nations […]
» Read moreRussia refuses to accept ‘restructuring’ of Ukrainian debt
The Kremlin is refusing to accept proposals by Kiev to restructure $3 billion worth of bonds and demands full payment on the debt. Experts point out that this is an economic as well as a political issue and it could become a bargaining chip in the ongoing negotiations over a bilateral gas deal. (Russia Beyond the Headlines – rbth.ru – […]
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