New deadline set for the dawn of the second wave of the ‘toxic bank loans’ crisis

Author: Inga Friedelhaus Section: Major Events of the Month

Issue: June 2009, Vol. 4, No.5

Tags: Turbanov

print-friendly version

Bad Debts Crisis

The second wave of the ongoing banking crisis caused by the so-called ‘bad’ debts or defaulted payments by borrowers, is expected to occur in Russia in late autumn or by yearend, Alexander Turbanov, the director of state corporation Deposit Insurance Agency, said.

“Our previous forecasts that the second wave of the ‘bad debts’ crisis would occur in spring did not materialize, but all the same such danger still remains.” Turbanov, however, noted that he also does not exclude the fact that those, who think otherwise, might be right. “But I remain convinced that it is necessary to be ready for the second wave of crisis by having emergency plans in place.”