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S&P warns Russian banks

21 November 2008

According to estimations of international rating agency Standard and Poor’s (S&P), next year the problem of Russian bank system’s debts can reach ten and more percent.
As Ekaterina Trofimova, an expert of the S&P’s branch in Paris, has explained, it will be negatively reflected in the capital of banks and level of their profitability. Now, according to Ms. Trofimova, debt problem is not urgent, therefore today it does not represent serious threat to bank system.
As Ekaterina Trofimova, the next year the problem of bank sector’s debts can make ten and more percent. Ekaterina Trofimova has told that it is their own indicator, which considers the delayed debts under credits without dependence from term of delay without technical delay, credits to the banks, the re-structured problem credits, and also the actives, withdrawn at liquidation of problem credits and credits to the parties, connected with borrowers’ problem.
As she said, now this indicator is much lower, therefore, the volume of problem debts does not bring serious threat to the bank system as a whole. She also notices, that of problem debts’ growth to ten and more percent is possible in case of sharp change of variety of factors, in particular, considerable deterioration of a macroeconomic situation in Russia, serious change of the rate of exchange and the further deterioration of a situation with liquidity.


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