BUSINESS

Bank Unveils Measures

By Tai Adelaja

Staff Writer

The Central Bank on Wednesday announced a series of measures aimed at shoring up liquidity and helping to cope with the effects of the ongoing financial crisis.

Central Bank First Deputy Chairman Alexei Ulyukayev said the turmoil in the country’s financial markets had been localized but that liquidity problems created in its wake could last for another 15 months.

Speaking at a conference on capital markets, Ulyukayev said the $50 billion that the Central Bank is to make available to the state-owned Vneshekonmbank, also known as the Development Bank, to help refinance the debt of Russian banks and companies would be released by the end of next year.

He said Russian banks and companies would need to pay back up to $40 billion to foreign creditors before the end of 2008 and another $80 billion in 2009.

The Central Bank may also ease requirements on loan collateral by one percentage point to stimulate domestic banks, Ulyukayev said.

A draft bill is also being prepared that would allow the Central Bank to offer unsecured loans to rated banks for up to six months to supplement the regular banking auction organized by the Finance Ministry, he said.

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