Russia news - loans & war

Dennis R Redmond dredmond at OREGON.UOREGON.EDU
Tue Mar 30 02:02:19 PST 1999


On Mon, 29 Mar 1999 michael at ecst.csuchico.edu wrote:


> If Russia really wanted the US to stop bombing, couldn't they have
> threatened to default?

Well, the kicker is that they owe most of their loans to EU banks. And the EU is the only superpower in town which has ponied up funds for the CIS (mostly, through Germany). It's one of those the-enemy-of-my- formerly-metropolitan-rival-is-my-Europeripheral-friend kind of deals. It seems to be working, too; Deutsche Bank wrote off lots of loans, and the IMF is forking out some cash for the Russians.

-- Dennis



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