Fitch Ratings: 25% of Russian loans are bad debt

The international rating agency’s estimate is that 25% of loans issued by Russian banks are bad debt; this coincides with the agency’s basic forecast produced about a year ago, Fitch’s Financial Institutions Senior Director Alexander Danilov announced at a press conference on Thursday, RIA Novosti says.

The agency’s year-old worst case scenario predicted the share of toxic assets might rise to 40%.

‘We are now in our basis scenario zone given the off-balance-sheet transactions and restructured debts,’ Danilov said.

Fitch believes the banks gained more control over the bad debt problem in the third quarter of 2009.

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