Wednesday, February 11, 2009

More Good News Out of Russia: Default

It's amazing that a nation that held currency reserves of over half a trillion dollars just a few months ago could be on the verge of default to foreign creditors.
The Russian Association of Regional Banks has submitted a plan for rescheduling loans to the Russian government, the Nikkei newspaper said, citing an interview with Anatoly Aksakov, the head of the association. The group is already in talks with HSBC Holdings Plc and Deutsche Bank AG, the Nikkei reported.
That's $400 Billion in loans looking to be rescheduled. If this occurs, the credit markets will take another significant blow (as the currency markets have already).

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