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Russian debt default worry spooks euro
10 Feb 2009The euro fell sharply today amid concerns about the potential for massive debt defaults by Russian companies lent money by European banks including HSBC.
The banks have been holding talks with Russian banks over whether businesses there will be able to meet their loan and interest repayments.
Regional Russian lenders today asked the Kremlin to moderate with Western banks over concerns about $400 billion (£269 billion) of debts due in the next four years.
Russia has pledged more than $200 billion to plug the hole in its economy left by plunging oil prices.
The euro slid 0.96p to 86.74p and 1.87 cents to $1.2883.
