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Cash-strapped Russian developers meet government over credit woes

Underlining how the credit crunch is impacting on transforming markets, a mixture of Russian developers and retailers have held crisis talks with the government over accessing finance.

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Russian developers and retailers are hoping to secure government support within the next two weeks, according to Reuters.

Representatives of the industries met Russian officials yesterday to discuss a solution for the two crisis-hit industries, the report continues.

First vice-prime minister Igor Shuvalov, seen as one of the main crisis troubleshooters in the government, held separate meetings with industry leaders but few concrete details emerged following the talks.

“The meeting was of a very general character. Some concrete decisions could be taken at a later stage,” one of the participants told the news service.

Companies such as PIK , Sistema Hals, Glavstroi and Inteko met to discuss a way forward. 

A spokesman for Shuvalov said the meeting with developers focused on “measures to maintain the pace of development of Russia's construction sector next year”.

A failure to build residential property on time could also result in social discontent, as some 150,000 to 300,000 Russians are waiting for new apartments, according to various estimates.

Ratings agencies have warned of bankruptcies and forced asset sales in Russia's real estate sector, and key players have already predicted property prices will fall by up to 30 percent in the next six to 12 months.