Daily Archives: February 19, 2010

The Russian central bank has agreed to cut its refinancing rate from 8.75 to 8.5 per cent, effective February 24. The main one-day repo rate is down from 6 to 5.75 per cent.

The rouble has been strengthening in recent days, possibly leading to a $2bn sale of the currency by Bank Rossii yesterday. Read more

A troubling chart from Thomson Reuters this morning, showing Spain facing $203.7bn maturing syndicated debt in the coming six years. That is roughly a fifth of the country’s annual gross domestic product (which was $261.5m for Q4 last year). Italy is second with $95.9bn over the same period. Greece – orange on the chart – is almost insignificant in context.

Chart courtesy of Thomson Reuters; source Thomson Reuters LPC/DealScan
Maturing loans are significant as new debt will be needed to plug the gap. Countries perceived as risky will pay a higher ‘new issue premium’, as a mooted deal in Greece is currently showing. Two questions: who will be these countries’ creditor (China?)? And what are the figures for the UK & US (I’m working on this one)?