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Eastern Europe
July 12, 2019 www.intellinews.com I Page 21
Russia will build the tallest residential building in Europe
Russia will build the tallest building in Europe. The One Tower project will be constructed on the territory of Moscow City, the Russian capital’s financial district, with apartments in the very centre of the business life of the capital, Albert Suniyev, the first deputy general director of Mosinzhproekt, said, Vedomosti reported.
The height of the planned building is 405m with 101 floors plus three underground floors,
The 405m tall One Tower project, to be constructed on the territory of Moscow City, will be the tallest building in Europe.
making it the tallest building in Europe. The future skyscraper will be 33m higher than the Federation Tower, which is currently the tallest building in Russia.
The building will be exclusively dedicated to residential use and will not have any commercial space, said Olga Shirokova, director of consulting and analytics at Knight Frank.
S&P estimates bad loans in Russia at 17%
Standard & Poor's rating agency estimated that share of bad loans in Russia as of end of 2018 amounted to 16.7% or RUB10.4 trillion ($164bn) in absolute terms.
The agency sees bad loans decreasing to 16% in 2019 and 15.5% in 2020, while noting that in the past six years the level of bad loans in the banking system has been high at 12.9%-17.5%.
Notably, S&P sees estimated reserve average coverage of bad loans of 60% as insufficient. The agency estimates that necessary extra reserves would require RUB1.6 trillion of capital and would bring the sector's capital sufficiency ratio by 2pp from 10.2% (8% minimum required).
The stickiness of bad loans is attributed to insuffi- cient regulation, slow economic growth, currency volatility, high concentration of borrowers, and the rise of unsecured lending.
As reported by bne IntelliNews, most recently
the World Bank (WB) and the Finance Ministry warned of consumer loans risks in Russia. The WB reportedly found that almost 60% of Russian's private borrowers faced problems with servicing that debt, while the ministry believes debt servic- ing costs impede income growth.
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