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re: Russian borrowers money woes include their home mortgages

Posted on 12/13/14 at 11:34 pm to
Posted by Layabout
Baton Rouge
Member since Jul 2011
11082 posts
Posted on 12/13/14 at 11:34 pm to
quote:

The reason they borrowed the foreign currency was the interest rate on foreign currency loans was MUCH less than if they had borrowed rubles, something like 5% annual interest versus 10% for rubles.


I didn't realize that this was an accepted way of financing. An ARM is looking mighty good compared to this arrangement.
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 12/14/14 at 3:43 am to
quote:

I didn't realize that this was an accepted way of financing.


I'm actually curious how foreign banks can foreclose on a delinquent loan. Will Russian law allow for this?
Posted by LSURussian
Member since Feb 2005
127152 posts
Posted on 12/14/14 at 9:19 am to
quote:

I didn't realize that this was an accepted way of financing.
That's because most typical Americans only think in terms of U.S. dollars. Countries with developing economies have to use a variety of currencies.

When I was working in Moscow, I'd see Russians get their pay in rubles and as soon as they got paid, they would rush out to the closest currency exchange kiosk on the street and sell their rubles for dollars. Dollars were king.
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