Russian companies may default because of huge corporate debt

[lovuian]

http://english.pravda.ru/business/companies/10-08-2007/95898-corporate_debt-0

In 2008, Russian companies and banks are expected to borrow $125 billion in foreign loans. The amount of borrowings equals half of the accumulated debt obligations, which already totals one quarter of Russia’ GDP. Experts warn that the ratio may cause Russian companies to default.







Russian companies will repay $88 billion in external debts in 2008. The debt repayment amount will exceed Russia’s trade budget surplus, according to Alfa Bank analysts. The companies will have to pay off $38 billion in principal payments and $50 billion in interest payments. Alfa Bank economists believe the repayment will not affect the continued inflow of borrowed capital. “As regards the year 2008, we estimate that Russian banks will borrow at least $65 billion, and the companies will borrow $60 billion,” said Natalia Orlova, a chief economist at Alfa Bank.

Russian companies have borrowed external funds at a gallop in recent years. The corporate debt totaled $35.2 in 1998, whereas debt obligations in 2006 reached approximately $260 billion.
more...
I'm like OMG these numbers are feakin HUGE

[TransitJohn]

1. yeah no kidding

we haven't seen numbers that low since the Great War.

[lovuian]

2. in this world wide credit crunch who is going to lend them

more money???