Mortgage crisis in the USA knocks Russia (Part 1)
9 January 2008The economy has lost cheap credits, the companies have postponed IPO, and banks have experiences problems with liquidity.
The main event for the world economy last year was mortgage crisis in the USA, which at once has developed into “credibility gap” of financial institutions in the world market. Artificial stimulation of the American economy - including lending out mortgage credit to needy borrowers, has turned into a mass non-return of credits, and also chains of losses and bankruptcies of financial structures not only in the USA, but also all over the world. Without confidence in reliability of the clients, banks have stopped lending out cheap credits to each other. Some banks and financial companies were on the verge of bankruptcy.
For Russia the world credit crisis has turned into the end of cheap money epoch. On a wave of the crisis the Russian stock index RTS has fallen approximately by 10 %, as well as stock market in the USA, Europe and Asia. Later RTS index was restored, however investors have lost confidence and describe a situation in the stock market as rather uncertain one.
- Mortgage crisis in the USA knocks Russia (Part 2)
- EBRD: Russian mortgage is unreliable and inconvenient
- Middle February Russia will raise mortgage bank-rates and make requirements more rigid
- International conference Private Banking and Wealth Management in Russia
