Daily Banking Industry News
Friday 06th of February 2009

Banking Sectors:

By company:

By organisation:

Also see:

February 5, 2009

Russia shores up domestic banks with $40bn

by Gill Montia

Story link: Russia shores up domestic banks with $40bn

Russia’s finance minister, Alexei Kudrin, has announced that around $40 billion (£27.6 billion) of government money will be injected into the country’s domestic banks, to shore up capital ratios.

In return, Mr Kudrin expects the banks to restore lending to Russian businesses.

The credit crisis sparked large-scale withdrawals of foreign capital from Russia and last year, around $26 billion was pledged by the government to support the country’s leading banks.

In addition to the outflows of foreign cash, the Russian economy has been hit by falling oil and gas prices, rising unemployment and a falling rouble, which has plunged almost 40% in six months.

This week, credit rating agency Fitch downgraded Russia’s sovereign rating by one notch to “BBB” and warned that further cuts are possible.

The new rating is regarded as two notches above “junk”.

According to a report in The Times, Russia’s foreign exchange reserves, which stood at $600 billion in the summer of 2008, have fallen to around $386 billion today.

 

Add to Bookmarks:

ADD TO NETSCAPE     ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL


Related stories to: Russia shores up domestic banks with $40bn

Deutsche Bank make pair of Russian appointments  ...

Barclays acquires Expobank of Russia  ...

Deutsche Bank strengthens its Russian presence  ...

Shinginko bank of Tokyo in crisis  ...

Chinese Government Disciplines HSBC  ...

No Comments »

No comments yet.

Leave a comment


Previous: « Britons rely on credit for everyday purchases
Next: Abbey profit up 20% »

Visited 137 times, 31 so far today


Savings & Investment News


Borrowing & Lending News



Financial Reports News