08/13/1998 07:29:39 Russia c.bank says new measures will calm markets
MOSCOW, Aug 13 (Reuters) - Russia's central bank expanded
commercial bank access to overnight credits and imposed limits
on foreign exchange purchases on Thursday, saying the measures
would calm markets and did not affect rouble convertibility.
"We are widening the circle of banks which have access to
one-day credits from the Bank of Russia. Previously this access
was restricted to primary bank dealers," Central Bank Deputy
Chairman Denis Kiselyov told Reuters. He said overnight credits
were now available to banks with state debt portfolios of more
than 100 million roubles.
The central bank said on Wednesday that the Russian
interbank market had been crippled by acute liquidity problems
and a crisis of confidence, with some banks failing to meet
obligations to each other and to the central bank.
Kiselyov said the expanded access to overnight credits,
along with limits on purchases of foreign exchange by banks
building up their own reserves, would help cool the market. The
central bank is also stepping up supervision of banks.
"We expect these measures will be sufficient to stop the
market from overheating," he said. "We are not restricting in
any way the acquisition of foreign exchange for operations with
clients, to meet their own obligations, to pay off syndicated
loans, or to pay out resources on client deposits."
A central bank statement said the measures did not affect
rouble convertibility. "The decision does not introduce any
changes in the Russian rouble convertibility regime or in the
existing system of currency regulation in the Russian
((Irina Demchenko, Moscow Newsroom, +7095 941-8520