INTERFAX - Russia & CIS Banking and Finance news report of 22.08.2008

OPINION

Russian economic growth to slow in H2, banks to have liquidity shortage – Alfa Bank

FORECAST

Fitch forecasts liquidity risk rise for 2010

FINANCIAL POLICY

Government approves budget for 2009-2011

Russia earmarks 540 mln rubles in financial aid to South Ossetians

Finance Ministry tops off Reserve Fund for first time this year

Russia earns over $1 bln on Fannie Mae, Freddie Mac bonds – Kudrin

Russia not planning to up investment in Fannie, Freddie bonds

OFFICIAL COMMENTS

Russia’s H1 socioeconomic results "not bad," inflation unacceptably high – Putin

Russian inflation expected to slow in coming months – Nabiullina

Russian budget expenditures to total 16.8% of GDP in 2008 – ministry

Kudrin: capital outflow due to South Ossetia conflict has ended

Federal budget may face deficit starting with 2014 - Kudrin

Econ Ministry opposes increasing tax burden

Further fiscal tightening will slow bank growth – Central Bank’s Melikyan

STATISTICS

Russia had 0.1% inflation in August 12-18 – Rosstat

Russian GDP up 7.9% in 7 mths – Nabiullina

Central Bank estimates net capital inflow in Jan-July at over $30 bln

Central Bank forecasts net capital inflow of $50 bln in 2009

Central Bank forecasts 19%-28% growth in money supply in 2009

Producer prices up 5.4% in July, triple the forecast rate

Fixed capital investment growth in Russia slows to 9.9% in July

Fiscal revenue in Russia up 39.6% to 2.7 trillion rubles in 7 mths

Budget revenue could rise to 10.927 trillion rubles in 2009

Finance Ministry to attract 529.5 bln rubles on domestic market in 2009

Central Bank expects forex reserves to increase by $21.2 bln-$145.2 bln in 2009

Russian monetary base up 53.1 bln rubles to 4539.1 bln rubles

RUSSIAN BANKS

MERGERS & ACQUISITIONS, REGIONAL DEVELOPMENT

Gazprombank buys Noyabrskneftekombank

INVESTMENT

Bank of Moscow buys almost 1% stake in NOVATEK

TransCreditBank raises stake in Rostelecom to 5.59%

FINANCIAL RESULTS

Sberbank boosts earnings 40% to 81.8 bln rubles in Jan-July

KIT Finance boosts net assets 7% in H1

CENTRAL BANK

Central Bank to raise bank capital requirements

Central Bank to beef up supervision of 200 banks

SHAREHOLDER & BOARD MEETINGS

Rosselkhozbank to double charter capital

RATING ACTIONS

S&P assigns Russia’s Bank Vozrozhdenie ’BB-/B’, ’ruAA-’ ratings

Fitch Upgrades Russia’s BTA Bank to ‘B+’; Outlook Negative

Fitch withdraws ratings of Russia’s Conversbank

TRENDS

DOLLAR DOWN IN RUSSIA

Govt debt prices slide again in thin trading

Mixed trends on Eurobond market

Stock market starts to recover, RTS holds at around 1700

Results Of Russian Stocks Trading In Russian Trading System

STOCK INDEXES

CIS AND THE BALTIC

UKRAINE

Ukrainian economy grows 6.5% in Jan-July

Foreign direct investment in Ukraine soars 170% in H1

Foreign ownership of Ukrainian banks shrinks to 37.2% in July

BELARUS

Belarusian budget deficit to total 2% of GDP in 2009-2011 – ministry

Foreign investment in Belarus increases 44% in H1

KAZAKHSTAN

Kazakhstan’s Narodny Bank to raise at least $200 mln in syndicated loan

KYRGYZSTAN

Kyrgyzstan’s budget surplus at 2.3% of GDP in H1

Nb: This news report features only the headline of each news.