The great pretenders
Article Abstract:
The Russian banking system is in need of reform, but conditions for reform are lacking. There has to be a favorable economic climate and an appropriate legal system, and politicians have to be determined to carry out reforms, while honest administrators are also needed. Bad debt is a serious problem for Russian banks, with loans that may have been granted to cronies accounting for a sizeable proportion of the bad debt. The International Monetary Fund has called on the government to restructure the banks.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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Frozen liabilities
Article Abstract:
The 52 Japanese regional-credit guarantee companies are providing loan guarantees as part of a government plan to tackle the danger of a credit crunch. The aim is to aid sound companies to obtain loans from banks, which face an increasing amount of bad debt, and scarce capital. The program has been well received by Japanese banks. There could be defaults on 10% of the loans, according to government estimates, but this figure could be higher, with losses totalling more than forecast.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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