By Andrei Skvarsky.
Tinkoff Credit Systems stock plummeted 40% to $9 per share on Friday on news that Russia’s government is planning a law to restrict distant distribution of credit cards by banks.
It would then only be possible to obtain a card from a bank office.
“This is only one of many initiatives to curb unsecured consumer credit lending in Russia by the Central Band of Russia and by the regulator,” Luis Saenz, the London-based head of equity and sales trading for Russian broker BCS, told EmergingMarkets.me
BCS had suggested a per share price of $12, a price that “does not include harsh regulatory action such as this,” Saenz said. BCS’s bear case is $6.