Loss of confidence, and who can blame them?
Posted on 08/21/2008 4:04:47 PM PDT by BurbankKarl
Investors pulled their money out of Russia in the wake of the Georgia conflict at the fastest rate since the 1998 rouble crisis, new figures showed on Thursday.
Russian debt and equity markets have also suffered sharp falls since the conflict began on August 8, with yields on domestic rouble bonds increasing by up to 150 basis points in the last month.
Credit conditions are to be discussed at next month’s “summit of oligarchs”, the Russian Union of Industrialists and Entrepreneurs meeting that former President Vladimir Putin held annually to discuss economic issues.
Vladimir Potanin, head of Interros, one of Russia’s largest industrial groups, has complained about the shortage of long-term credit to Mr Medvedev, the financial newspaper Vedomisti reported on Thursday.
The tight credit conditions have been exacerbated by foreign capital flight since the war. Data released by Russia’s central bank showed a drop in foreign currency reserves of just over $16.4bn in the week beginning August 8. This was one of the largest absolute weekly drops in 10 years, according to Ivan Tchakarov at Lehman Brothers.
(Excerpt) Read more at ft.com ...
UK is talking about “tightening” visa requirements for Russians.
Loss of confidence, and who can blame them?
I’ve got a bond-trading buddy who ran a sovereign debt fund offshore back in the 1990’s. Russia’s default in 1998 on all of their sovereign federal debt cost him a cool Billion Dollars.
Wiped him out down to his house and two cars. He moped about for a couple of years, but then he found a good gig back here in the States and has done OK for a recovery.
You think that he’s investing in Russia right now?!
LOL!
Foreigners lost billions of dollars in Russia
(ya gotta love the title...)
"The foreign funds focused on Russia lost during the war between Russia and Georgia over one billion dollars but the losses can be even greater."
We can only hope. :-)
Russian women are overrated in terms of looks, don’t age well, are total c-nts to deal with, and have annoying accents. Much prettier women in Slovakia, Bulgaria, and Poland (although women in the latter only want marriage, grr!).
Nina Moric is Croatian isn’t she?
A friend of mine is married to a girl from a Polish part of Poland..very pretty.
Every Dollar, Pound, Euro & Yen must be pulled out of Putin’s Russian dictatorship. Cut all economic ties, treating the Kremlin war lords as the blood thirsty rouge state they are.
It made my day too, MarMema. Besides the economic hit which was expected and is becoming reality, I appreciate the pictures of the American war ships on their way in with humanitarian aid. Another expectation on its way to reality. I hope putin is sane enough to haul out of Poti.
Check the latest update on my site...HERE
Scroll down for the latest.
Thanks, Jeff. I’ll keep checking. It’s nerve wracking and I’m safe, sheltered, well-fed, and free. Here’s hoping the Georgians can soon say the same except for the nerves.
It would be good if the Russian people realized a regime change would be helpful to their standing.
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