Wednesday, September 17, 2008
Russia to lend its three largest banks up to $44 billion
HONG KONG -- Russia's government will lend its three largest banks up to 1.3 trillion rubles ($44 billion) for three months and longer if needed, the Finance Ministry said in a statement Wednesday. The move comes a day after Russian equities went into free fall Tuesday, forcing the suspension of trading on its two major exchanges for an hour. The Finance Ministry said it would make 754.3 billion rubles available to state-run OAO Sberbank, 268.5 billion rubles to VTB Group 103.9 billion rubles to OAO Gazprombank. "These are system-forming banks, capable of ensuring the liquidity of banking system," the Finance Ministry said in a statement. Additional liquidity will also be made available to smaller banks.
Posted by Albert Howard at 9:27 AM