МOSCOW (MRC) -- No Russian companies received loans in U.S. dollars, Swiss francs or euros last month, the first time this has happened in at least five years, according to data compiled by Bloomberg.
Global banks fell away in the second quarter, with lending plunging 42 percent from a year earlier to $4.7 billion as the Ukraine conflict worsened after President Vladimir Putin annexed Crimea in March. That was the least for any quarter since 2012.
International lenders are weighing the political and financial consequences of doing business with Russian companies after the U.S. and European Union stepped up sanctions on the nation’s banking and energy industries because of the crisis in Ukraine. OAO VTB Bank’s plan to get a USD1.5 billion loan led by Barclays Plc will probably be scrapped, lawyers said last week. Royal Bank of Scotland Group Plc and Citigroup Inc. said Aug. 1 they’re scaling back their dealings with the country.
About USD28 billion was wiped from the value of the three Russian banks on the Micex stock index, according to data compiled by Bloomberg. OAO Sberbank, the nation’s biggest lender, lost USD22.8 billion, the data show.
Russian companies paid an average interest margin of 287 basis points, or 2.87 percentage points, more than benchmark rates for internationally syndicated loans in the second quarter, according to data compiled by Bloomberg. That compares with 194 basis points in the same period a year earlier.
European banks may also steer clear of syndicated loans to the country to avoid potential penalties, even though such lending hasn’t been penalized.
MRC