Monday, February 09, 2009

Russian banks defaulting?

Feb. 10 (Bloomberg) -- The euro fell against the dollar and the yen as a Nikkei newspaper report that Russian banks and businesses may seek to reschedule $400 billion of foreign loans deepened concern financial turmoil in Europe is worsening.

“The Nikkei report of rescheduling debt is driving the euro lower because European financial institutions have a bigger exposure to Russia than their counterparts in other countries,”

“European banks may face more financial difficulties, given the Nikkei’s report that Russian banks may negotiate a debt rescheduling,” said Yuji Saito, head of the foreign- exchange group in Tokyo at Societe Generale SA, France’s third- largest bank by market value. “It is natural that the euro is sold and the yen is bought.”

Euro Falls on Report Russian Banks May Seek to Reschedule Debt

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