Russia economy meltdown as bonds crash and shopping centres face mass bankruptcy
The Union of Shopping Centres (STTs) estimates that half of the country’s shopping centres are facing high debt burdens.
Many have taken out loans with floating rates, which creates a risk of widespread bankruptcies.
Marina Malakhatko, a senior director at the consulting firm CORE.XP, told the Russian media outlet Kommersant that at least 200 shopping malls will be at risk of bankruptcy in 2025. She said some owners are already looking to sell their assets.
Debt servicing has become even tougher after Russia‘s Central Bank was forced to hike interest rates to 21 percent – the highest level in over 20 years.
The Union of Shopping Centres (STTs) estimates that half of the country’s shopping centres are facing high debt burdens.
Many have taken out loans with floating rates, which creates a risk of widespread bankruptcies.
Marina Malakhatko, a senior director at the consulting firm CORE.XP, told the Russian media outlet Kommersant that at least 200 shopping malls will be at risk of bankruptcy in 2025. She said some owners are already looking to sell their assets.
Debt servicing has become even tougher after Russia‘s Central Bank was forced to hike interest rates to 21 percent – the highest level in over 20 years.
Russians have also faced tax increases, as the Kremlin seeks to raise more money to fund its war in Ukraine.
Government spending on national defence is expected to rise to $120 billion (£93bn this year from $75 billion (£58bn) in 2023.
In the summer Putin signed off on a package of tax rises worth almost $30 billion (£23bn), tapping workers and companies to raise more funds for his Ukraine offensive.
