In Soviet Russia, Bank Bails Out You?

March 26th, 2009 by alyx · 3 Comments · all ur bankz

fail-russia

No… in Soviet Russia, bank does not bail out you.  Not gonna happen in Medvedev’s Russia either. Russia’s banks are letting it be known that without a bailout, they too will set sail for fail:

Hundreds of Russian banks are likely to go under by the end of the year as the amount of bad loans surges, potentially hitting as much as 20 per cent of credit portfolios, a senior Russian banker has warned.

Pyotr Aven, president of Alfa Bank, one of Russia’s largest private banks, called on the government to move swiftly to recapitalise the top 30 banks and name the institutions that will receive assistance to help kick-start the flow of credit, which has almost dried up amid growing fears over bad loans.

“We can expect that the level of overdue loans for the whole system might reach 15-20 per cent” by the end of the year, Mr Aven told the Financial Times.

That photo above looks like a good ol’ fashioned run on Alfa’s bankomat, but for all I know, those kinds of lines are typical [insert another Soviet-era joke here]. 10% default rate, 25% interest rates… and last I read in Business New Europe, you absolutely cannot get an auto loan over there. This makes the American credit crunch look like child’s play, no?

3 Comments so far ↓

  • BlueMonkey

    And you can bet your sweet ass that Pootie Poot won’t be handing out any dough without a substantial takeover of anything the Russian government “capitalizes” or otherwise helps limp along.

    Car loans? I thought cars were acquired in “new” Russia by certain car procurement rings. No loans (from banks, at least) needed.

  • 'mouse

    The other day my friend’s Ukranian mail-order bride mentioned that her brother not only has a big bank loan on his new car, but that all such loans are dollar-denominated.

    And then the currency fell by half relative to the dollar. And the government cut his salary by a further one-half last week.

    How do you say Fail-Fail-Fail! in Ukranian?

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