Russia helps companies with foreign debt – Financieele Dagblad (Registration)

Russia helps companies with foreign debt – Financieele Dagblad (Registration)

The Russian central bank is large Russian companies help refinance foreign debt. Companies that are willing to use their foreign loans as collateral to borrow from the central bank of euros and dollars.

That made Russian central bank announced on Wednesday. Russian companies twisting by the collapse of the ruble with a heavy external debt burden and concerns that they get into trouble when next year to $ 120 billion in foreign loans to be refinanced. By Western sanctions against Russia Russian companies have no access to Western capital markets, which the euros and dollars needed to roll or to pay off the loan by making scarce

Door to be the measure, part of the credit risk of the companies at the central bank.

Normal

The Russian central bank seems to succeed in recent days the market turmoil to restrain the first half of this month. The ruble note Wednesday 0.2% higher against the dollar at 56 rubles to a dollar. That is considerably less than the peak of 80 in a dollar last week, but still much more than the position of 35 this summer. An unprecedented rate increase (from 10.5% to 17%) by the central bank, provide a recapitalization of the banking sector and

the forced sale of foreign currency by state companies the ruble have last week of support.

Op the fair in Moscow won the MICEX index 0.2%. Interest on dollargedenomineerde decade loans fell 7 basis points to 6.26%; Russia no major movement

Junk Status

Ondanks the relative calm of Wednesday, the worries about Russia’s economy is not the job. Tuesday warned Standard & amp; Poor’s that it is considering lowering the Russian credit judgment, making the country would get the so-called junk status. S & amp; P, noting the severe impairment of monetary flexibility and the impact of the weak economy on the financial system as areas of concern.

The high interest rates of 17%, thereby putting a strain on the economy, which has been so hard hit by plummeting oil prices . The fact that the price of oil lately somewhat seems to have stabilized at a position of just over $ 60, is also a boost for the ruble. Which declined in recent months, more or less one-on-one with the oil price, because the Russian economy is so heavily dependent on revenue from oil exports.