Credit Suisse is first to unveil loss on Russian exposure

Article Abstract:

Credit Suisse Group has reported a loss of $254 million in net profit due to market difficulties in Russia. Credit Suisse is currently the hardest hit among European banks because of the Russian financial fallout. The Swiss lender reported net profit of $754 million in the first six months of 1998, but due to the Russian crisis, Credit Suisse reduced its net profit for the year-to-date to $500 million. Salomon Smith Barney analyst Matthew Czepliewicz said they, at Salomon Smith, are assuming a 100% write-off for European banks in 1998. Russian government's $40-billion debt restructuring plan will mean foreign banks will get an estimated 20% to 25% of the face value of debt. Most of debt under the restructuring programs will be transformed into rubles, which recently fell.

Comment:

Reports a loss of $254 mil from net profit of $754 mil in the first six months of 1998 due to Russian financial fallout

Sales, profits & dividends, Business Credit Institutions, All Other Nondepository Credit Intermediation, Commercial finance companies, Credit Suisse Group, Article

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IMF seeks Russian Central Bank details; draft report finds no irregularities in affiliates

Article Abstract:

The International Monetary Fund (IMF) received a draft review of the Russian Central Bank's offshore banking affiliates, but it asked for additional details to better determine whether they were used to cover up state support for Russian commercial banks and play debt markets, therefore possibly violating earlier IMF accords. The review was conducted by PricewaterhouseCoopers, and it is one of several issues that have postponed releasing a second tranche of a $4.5 billion (Euro 4.15 billion) loan package for Russia agreed in July. The IMF was supposed to pay an additional sum of $640 million in September, but this will probably not occur before late November at the earliest.

Financial management, Federal Reserve Banks, Monetary Authorities - Central Bank, Banking industry, International Monetary Fund, Finance, PricewaterhouseCoopers L.L.P. (New York, New York), Russian Central Bank

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