Appetite seen undimmed for Russian deals despite Cyprus problem
The spreads of Russia’s bonds jumped on Monday as investors saw the terms of and reaction to a bailout package for Cyprus. Not only has the situation brought the eurozone’s woes to the fore once again — and is risking a contagion effect to the emerging markets — but Russia’s banks and corporates have billions of dollars of direct exposure to the country.
Because of that, Russia may be encouraged to contribute to the bail-out either via Russian banks buying into local lenders and also bilateral loans from Moscow. The Russian government last gave Cyprus a 2.5bn loan in 2011.
Despite all of this though, bankers are saying that
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