Several Russian regions are on the verge of bankruptcy, but central government is in denial, the international rating agency Standard Poor’s claimed this week. It is also alleging that at least one region made a late payment on a bank loan in the first quarter of 2015. The agency calculates that the regions’ average debt burden will rise from 33% to at least 55% of income over the next three years and, with interest rates on loans running at up to 20% for some of the weaker regions, they will struggle to meet their commitments as revenue from corporate and personal income taxations slows down.
Source: Rosbalt