Russian govt to supply liquidity to financial market, banks

Date : 03/24/2008 @ 12:19PM
Source : TFN
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Russian govt to supply liquidity to financial market, banks

        MOSCOW (Thomson Financial) - Finance Minister Alexei Kudrin said the
government has decided on a series of measures aimed at supplying liquidity to
the Russian financial markets and banking system and to guarantee access to
credit and sustain the country's economic growth.
    The government has decided to "place on the domestic market the capital of
several companies, in particular Rosnanotech (a state-owned company which
develops nanotechnologies) and that of communal services", he said at a meeting
with President Vladimir Putin, cited by Russian news agencies.
    He said about 340 bln rubles (9.3 bln eur) of resources will be allocated in
the long-term.
    Kudrin said he believes this will guarantee liquidity in the coming months
and until the end of the year.
    The Treasury will also be authorised to make temporary funds available to
the market, he said.
    These measures have been discussed by the central bank and the banking
sector, he said.
    The growth in credit will thus reach 35-40 pct this year, he said. He added
that this is slightly less than last year due to the risks on the global
financial markets, but sufficient to guarantee economic growth of at least 7 pct
this year in Russia.
    On Saturday, Kudrin said the government revised upwards its growth forecast
for 2008 to 7 pct from 6.5 pct, and added that a further upward revision is
possible, "if we remain capable of resisting the effects of the world
(financial) crisis".

    
tf.TFN-Europe_newsdesk@thomson.com
afp/cmr

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