{"id":10244,"date":"2015-07-20T20:35:24","date_gmt":"2015-07-21T01:35:24","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10244"},"modified":"2015-07-20T20:35:24","modified_gmt":"2015-07-21T01:35:24","slug":"42-billion-reasons-why-putins-time-may-be-running-out","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10244","title":{"rendered":"42 Billion Reasons Why Putin’s Time May Be Running Out"},"content":{"rendered":"

42 Billion Reasons Why Putin’s Time May Be Running Out<\/a><\/h3>\n

Russian municipal bond risk is surging once again<\/strong>\u00a0(at 6-week highs) heading towards crisis-levels asBloomberg reports<\/a>\u00a0numerous regions\u00a0(including Chukotka – across from Alaska, Belgorod -near Ukraine, and three North Caucus republics)<\/em>\u00a0are\u00a0prompting concerns as debt-to-revenue levels top 100%<\/strong>\u00a0(144% in the case of Chukotka).<\/p>\n

Risk is on the rise once again…<\/em><\/p>\n

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The clock is ticking for President Vladimir Putin to defuse a situation he set off in 2012 with\u00a0decrees to raise social spending<\/strong>. That contributed to a doubling in the\u00a0debt load of Russia\u2019s more than 80 regions to 2.4 trillion rubles ($42 billion)<\/strong>\u00a0in the past five years and it\u00a0all rolls within the next two to three years.<\/strong><\/p>\n

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As Bloomberg details,\u00a0<\/em><\/a>threats to municipal finances are snowballing as sanctions over Ukraine choke access to capital markets, forcing local governments to fund social outlays with costlier bank loans.<\/em><\/strong><\/p>\n

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While regional debt sales are down 53 percent so far this year, Moody\u2019s Investors Service estimates borrowing will grow as much as 25 percent in 2015, driven by spending on health care, education and utilities.<\/strong><\/div>\n

The squeeze is putting regions in jeopardy.\u00a0<\/strong>They\u2019re facing\u00a0“an increasing likelihood of defaults,”\u00a0<\/strong>S&P warned in June. At least one non-rated local government delayed a principal repayment on a bank loan in the first quarter, it said.<\/p>\n

“A default by a large region could block market access for the Finance Ministry itself,”<\/strong>\u00a0said Karen Vartapetov, associate director of S&P\u2019s Moscow office. “Right now the federal center has an opportunity to help regions. In three years, there may be fewer resources, while regional debt may be bigger, and that will result in greater risks.”<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n

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42 Billion Reasons Why Putin’s Time May Be Running Out Russian municipal bond risk is surging once again\u00a0(at 6-week highs) heading towards crisis-levels asBloomberg reports\u00a0numerous regions\u00a0(including Chukotka – across from Alaska, Belgorod -near Ukraine, and three North Caucus republics)\u00a0are\u00a0prompting concerns as debt-to-revenue levels top 100%\u00a0(144% in the case of Chukotka). Risk is on the rise […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1719,7418,195,200,694,821,857,4318],"class_list":["post-10244","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bond","tag-capital-markets","tag-debt","tag-default","tag-russia","tag-ukraine","tag-vladimir-putin","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10244","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10244"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10244\/revisions"}],"predecessor-version":[{"id":10245,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10244\/revisions\/10245"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}