Headquarters of the Central Bank of Russia, Neglinnaya St, Moscow
Photo: Yury Martyanov
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CBR to Alter Exchange Playing Concept
The Central Bank of Russia (CBR) wants to approach the exchange to loan money to banks on security of exchange bonds. The government OKed the respective bill Monday and the State Duma is expected to pass it in the nearest future.
CBR plans to approach stock markets to make repo operations with securities that are out of the OFZ section (i.e. with corporate bonds), Sergei Shvetsov, head of the CBR department for financial market operations, announced yesterday. The actual intention of CBR is to credit the banks, including on security of exchange bonds; the respective bill has been sanctioned by the cabinet already.
Nowadays, the banks may attract the CBR money at 6.03 percent to 6.3 percent via the repo auctions that are held twice a day or they may get it at 8 percent in the course of the day. The novelty is expected to reduce rates, and therefore, it will be certainly of interest to credit institutions.
According to Ingosstrakh-Investitsii (Ingosstrakh Investments) General Director Valery Petrov, the rate used by the market players to clinch repo deals with each other will probably go down once such big counteragent joins the trading. Yesterday, the banks used the 7-percent rate for their transactions.
www.kommersant.com
All the Article in Russian as of Dec. 12, 2007
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