Economics
Russian Banks Awash in Dollars Make Loans Company Debt of Choice
- Citi says Russian companies prefer bank loans to bonds
- Sberbank's foreign-currency deposits grew 33% this year
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More than a year after sanctions against Russia were seen draining the nation’s banks of dollars, lenders are awash in the currency, giving companies ample reason to skip borrowing abroad.
Foreign-currency deposits and accounts held at Sberbank PJSC, the nation’s largest lender, rose 33 percent this year to almost $90 billion as of Oct. 1, according to data from the bank. Lenders are charging some exporters interest rates that are lower than yields the companies would have to offer to sell bonds on international markets, according to Citigroup Inc.