Bloomberg News

Putin Unveils New Proposals to Boost Liquidity, Interfax Says

September 29, 2008

Russian Prime Minister Vladimir Putin said the central bank should make loans available to banks without collateral, while companies may borrow from the state development bank to pay off foreign debts, Interfax said.

Putin announced the new measures at a government meeting today, the Moscow-based news service said.

Banks and companies will be able to borrow from VEB, or Vnesheconombank, to help pay foreign loans taken out before Sept. 25, Interfax said. VEB's capital will be increased by 75 billion rubles ($2.9 billion) this year, Putin said.

The central bank will also be permitted to cover banks' losses from lending on the interbank market and Bank Rossii should offer loans without collateral in order to support liquidity ``as quickly as possible,'' Putin said, according to Interfax. The number of banks allowed to participate in auctions of unused budget funds could be made ``significantly wider,'' Putin was quoted as saying.

To contact the reporter on this story: Alex Nicholson in Moscow at anicholson6@bloomberg.net

To contact the editor responsible for this story: Chris Kirkham at ckirkham@bloomberg.net


Cash Is for Losers
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus