Russia’s Bad Bank Should Outlive $27 Billion Clean-Up, CEO Says
- Trust CEO Khabarov says Russia needs a tool for bad assets
- Bad debts to grow as spread of coronavirus hurts economy: CEO
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The bad-asset bank created when a group of Russia’s biggest private lenders collapsed sees the twin shocks of plunging oil prices and global economic pain wrought by the coronavirus pandemic as a chance to expand.
“There’s every reason to believe that the amount of problem assets in 2020 will grow significantly,” Bank Trust Chief Executive Officer Mikhail Khabarov said in an interview last week. “Creating a special-situation fund that’s outside of the banking sector would be the right move for the economy, especially because there are bad assets not only at banks, but also at state companies.”