Wednesday, May 18, 2022

Dark clouds for Raiffeisen

Dark clouds for Raiffeisen

Not only because of the war in Ukraine, but also because of EU sanctions and Russia’s SWIFT suspension, one of Austria’s largest banks is coming under pressure: Raiffeisen Bank International fears for its 14.3 billion euros in Russia.

editorial staff
1 March 2022 14:37

With more than three million customers and 130 branches, she earned 474 million euros in Russia last year, but that could now be the end of it: the share lost a third of its value last week. For this purpose, 115 million euros have already been taken into account as a reserve in the budget – little compared to the outstanding credit volume, which is almost twice as high as that of their German colleagues Deutsche Bank and Commerzbank together. Only Italy and France are even more involved in this market.

Rumors and falling prices

While the head of the economic research institute (Wifo) Gabriel Felbermayr is already recommending a protective shield, bank boss Johann Strobl trusts in the liquidity reserves and the stable positioning of his institute – an assessment shared by Austrian competitors and the Ministry of Finance. Rumors of a possible withdrawal of RBI from Russia have not yet been confirmed.

Russian banks, on the other hand, have liabilities of 67 billion euros to European financial institutions. As the ruble plummets, the US dollar weakens in favor of the euro.

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