Russian market sell-off breaks 20% level

Article reports that shares in Russia dropped more than 20% in June 2009 in a sell-off that has underscored the country’s record as one of the world’s most volatile markets.

Investors said the slide had laid bare the structural problems facing the Russian economy. It faces the steepest economic decline of all the emerging markets in the Bric group – which includes Brazil, India and China – as well as the biggest debt restructuring problem.

Russia’s banking system has all but ceased lending due to growing fears about a second wave of financial crisis that could hit the banking sector later this year as non-performing loans grow.