Urban Group on the brink of bankruptcy

The well-known developer Urban Group is on the verge of bankruptcy. The cause of this dire situation is that Sberbank refused to finance the company's new construction projects.

To date, VTB is still providing support to the firm. However, the bank is already imposing lending terms that are inherently disadvantageous for the developer.

It is not ruled out that bankruptcy will be declared later this year. In this case, most investors may be left without their money and the housing into which their funds were invested.

Urban Group had prioritised administrative resources and conducted all negotiations from a position of strength. The situation has now changed. The developer's problems are creating significant difficulties for the Moscow region authorities.