Russian banks may need as much as $60 billion in capital injections if problem loans rise to 40 percent of the total and 24 percent of loans aren’t recovered, Fitch Ratings said.
In a less pessimistic “base case scenario,” the country’s banks will need $22 billion in capital, assuming loans 90 days overdue or whose maturities have been extended rise to 25 percent of the total and 12 percent of bank loans are ultimately lost, the ratings service said in a statement.
“Future recapitalization needs are likely to be centered primarily on privately-owned institutions” because state- controlled banks have already received $24 billion in new capital since the third quarter of 2008, Fitch managing director James Watson said in the statement.
OAO Sberbank, VTB Group and other Russian lenders are facing a surge in “troubled assets” that may total $213 billion, Standard & Poor’s said June 17.
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