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Real estate can become cheaper

September 22nd, 2008

Inhabited and commercial real estate will sharply fall in price, if banks will stop financing Russian companies, working in building sector. Such information has been given in the message of international rating agency Fitch Ratings.
According to rating agency, companies of the real estate sector and building branch are under the risk.
Fitch declares that if banks will stop crediting, cost of the commercial and inhabited real estate (which is at a peak level now) will decrease in process of distribution of compelled sales cases.
As it always happens during the stressful periods, the key factor for preservation of financial support relies in trust and the settled mutual relations. Fitch assumes that, it looks like, credit lines will be prolonged to the companies which have the adjusted attitudes with three largest banks got and access to liquidity in the form of accommodation of budgetary funds (Savings Bank, VTB and Gazprombank).
Thus, rating agency stresses, that developing companies should be careful with there bank collecting on the objects, which are being maintenance under credits and for retail companies - there is a great risk of consumers’ charges reduction.

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