mark61
17-09-08, 11:30
Trading on Russia's main stock exchanges has been suspended following steep falls in shares prices this week.
The shock developments on Wall Street this week spurred a sell-off in Russian shares, which sank to three-year lows on Tuesday.
Following a plunge of 6%, the dollar-denominated RTS index halted trading on Wednesday until further notice. It is down 60% since its May peak.
Trading on the rouble-denominated Micex was also suspended.
Confidence in Russian shares began to ebb after the country's invasion of Georgia last month with billions of dollars of foreign capital pulled out of the country in August alone.
Adding to this there have been mounting worries over the global credit markets, particularly after the demise of US banking giant Lehman Brothers and problems at insurer AIG.
The Kremlin moved to reassure investors by making available 1.13 trillion roubles ($39bn; £21bn) to three of the country's biggest banks to boost liquidity.
The money will be offered to Sberbank, VTB Group, and Gazprombank for a period of three months to make it easier for them to lend to smaller banks at affordable rates.
"These are market-making banks capable of insuring the liquidity of the banking system," the Finance Ministry said in a statement.
Nee joh, ff Georgië invaderen heeft geen gevolgen...
The shock developments on Wall Street this week spurred a sell-off in Russian shares, which sank to three-year lows on Tuesday.
Following a plunge of 6%, the dollar-denominated RTS index halted trading on Wednesday until further notice. It is down 60% since its May peak.
Trading on the rouble-denominated Micex was also suspended.
Confidence in Russian shares began to ebb after the country's invasion of Georgia last month with billions of dollars of foreign capital pulled out of the country in August alone.
Adding to this there have been mounting worries over the global credit markets, particularly after the demise of US banking giant Lehman Brothers and problems at insurer AIG.
The Kremlin moved to reassure investors by making available 1.13 trillion roubles ($39bn; £21bn) to three of the country's biggest banks to boost liquidity.
The money will be offered to Sberbank, VTB Group, and Gazprombank for a period of three months to make it easier for them to lend to smaller banks at affordable rates.
"These are market-making banks capable of insuring the liquidity of the banking system," the Finance Ministry said in a statement.
Nee joh, ff Georgië invaderen heeft geen gevolgen...