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Moscow: When Russian billionaire Alexander Lebedev’s OAO National Reserve Bank seized collateral offered against a loan from a cash-strapped borrower, a health quarantine was slapped on the security: 40,450 pigs.
“We had a court decision to take away the collateral, which is the pigs,” Lebedev said. The borrower agreed “with the local authorities to establish a quarantine” against African swine fever. The former KGB officer is still waiting to collect the pigs offered against a loan of $3.5 million.
Russian lenders are seeking to recoup losses by accepting a range of collateral, including stakes in Wild Orchid, a lingerie retailer, and food store Mosmart. The banks have been hit by a surge in non-performing loans, which Moody’s Investors Service estimates may rise to 20% of the total by year-end. The bad debt threatens to stall bank lending and may jeopardise a recovery in the economy, which grew 0.6% in Q3, the economy ministry says.
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