Russian enterprises raised $18 billion abroad in 2006, which is five times as much as in 2005.
Photo: Nikolay Cyiganov
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Russian IPO Bring Down Foreign Loans
Russian companies are now more eager to get loans in the Russian banking system than in foreign banks, economic analysts note. The Macroeconomic Analysis and Short-Term Prognosis Center on Tuesday published a report showing a new trend of Russian companies driving foreign banks out of the loan market.
Back in 2005, foreign banks serviced 60 percent of the growth of Russian companies’ demand for credits. The figure for 2006 is less than 20 percent, the Center’s economic report says.
Economists explain the change in Russian companies’ choice by two major factors. First, industries oriented at drawing money from abroad have reached the saturation point. On the other hand, the demand for loans is growing at companies which have limited or no possibilities to enter foreign credit markets. Most of these companies operate in agriculture, energy and real estate.
The Macroeconomic Analysis and Short-Term Prognosis Center notes that the change is partly due to the use of other ways of drawing foreign money such as direct or portfolio investments. Direct investments, however, went a moderate 4.6 percent last year. In contrast, the size of foreign IPOs of Russian companies looks really impressive. Russian enterprises raised $18 billion abroad in 2006, which is five times as much as in 2005.
www.kommersant.com
All the Article in Russian as of Feb. 28, 2007
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