Russian Banks Seek Government Role in $400 Billion Debt Talks

Russian Banks Seek Government Role in $400 Billion Debt Talks


Feb. 10 (Bloomberg) -- Russian banks asked the government to moderate talks to restructure $400 billion of loans to foreign banks falling due within four years, said the head of the Russian Association of Regional Banks.

The association wrote to the Russian government after talking with banks including HSBC Plc that had sought clarity about the capacity of some companies to meet obligations, Anatoly Aksakov, the association’s president, said in a telephone interview from Moscow today. The government hasn’t responded, he said.

“It would be most effective if the debt were restructured so it’s clear to everyone, creditors and borrowers, how the debt will be paid,” Aksakov said. “The government has the money. Some companies and banks have rather large hard currency liabilities on their balance sheets.”

BLOOMBERG