SECOND WAVE OF RECESSION MAY RESULT IN SURGE OF CRIMINAL LENDING IN RUSSIA
August 1st, 2011
BY EUGENE VOROTNIKOV
RUSSIAN businesses could return to widespread borrowing from criminal sources in any repeat of the 2008-09 recession and credit crunch, the country's financial watchdog has warned as continuing global turmoil hits interbank lending.
"We are facing a situation where criminal capital is increasingly being used for lending to business, thereby replacing the legal banking sector," said Yury Chikhanchin, head of the federal financial monitoring Service, Rosfinmonitoring.
He cited a recent high-profile case in which a prominent Siberian ...
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