Russian Property Developers Facing Bankruptcy Crisis
A significant portion of Russian property developers are facing financial distress, with approximately 20% on the brink of bankruptcy due to declining sales and high interest rates, and the share could exceed 30%. This is exacerbated by low demand, limited state support, and the diversion of resources to the war in Ukraine, resulting in shrinking sales and increasing debt burdens. The real estate sector is experiencing the sharpest deterioration, with a substantial rise in non-performing loans. Russian authorities are considering measures such as a moratorium on developer bankruptcies.
John Q. Hosedrinker