Local lenders step up competition in Russia deals
Russian loan volumes look set to remain healthy for the rest of the year as rail freight operator Globaltrans enters discussions with banks for M&A financing of up to $5bn. But international banks are more aware than ever of the competition from domestic Russian lenders, as VTB and Sberbank have joined international banks including JP Morgan in talks with the borrower.
Market pressure on European banks has pushed up their dollar funding costs and the problems will remind Russian corporate borrowers of 2009 when the credit crunch forced several banks to cut lending to emerging market borrowers.
The issue of funding costs has forced several banks to drop out of
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