Russian Economy in Crisis: Bank CEO Warns of Tough Times Ahead
Sberbank CEO German Gref has warned of significant economic challenges ahead for Russia, predicting difficulties stemming from military spending, inflation, and high interest rates that could extend into 2026. The quality of loan portfolios is declining, with increasing requests for debt restructuring from borrowers. Bloomberg reports a growing risk of a banking crisis within the next year, citing a surge in defaults not yet reflected in official statistics. Corporate debt has risen substantially, particularly among Russia’s largest companies, and mutual non-payments between companies are also increasing.
John Q. Hosedrinker