Interfax: Russia & CIS Banking and Finance news report of 03.07.2009

Weekly news:

REPORT

Fitch says global economy stabilizing; medium-term fiscal challenge ahead

OPINION

Russian banks may need more than $60 bln in recapitalization – Alfa Bank

FINANCIAL POLICY

FAS opens case against VTB 24, Raiffeisenbank over insurance practices

OFFICIAL COMMENTS

State support for mortgage borrowers to continue - Medvedev

Putin vows larger financial institutions will be kept afloat

Putin: Russia cannot afford budget deficits of 13%

Govt to assume most risk on loan guarantees – Putin

Ignatyev says reduction in refinancing rate highly likely

Inflation in Russia may be far lower 13% in 2009 – CB chairman

MinFin planning to present legislation on a state financial agency in August

MinFin considering ways of raising foreign lending in 2010

Bank recapitalization using OFZ will get 210 bln rubles in 2010 – Kudrin

Banks need recapitalization totaling 5%-10% of GDP - Aven

Russia interested in purchasing IMF bonds - Dvorkovich

Russian budget deficit could exceed 6% in 2010 – Kremlin aide

STATISTICS

Russian inflation at 0.2% from June 23-29, 0.6% in June

Russian international reserves up $3.4 bln in week

Russian monetary base down 18.9 bln rubles to 3988.4 bln rubles

Russian balance of payment surplus plunges 73% to $17.2 bln in H1 - Central Bank

Reserve Fund down to 2.958 trillion rubles on July 1 - MinFin

Russian external debt shrinks to $451 bln in Q1 – CB

Russian consolidated budget surplus shrinks to 15.6 bln rubles in 4 mths

Russian customs revenue plummets 39.3% in H1

Individual bank deposits in Russia up 1% in April - Rosstat

Central Bank lowers estimate of Q1 current account surplus

CENTRAL BANK

Central Bank will drop recommended foreign asset limits for banks in Q3

Russian banks get 10 bln rubles at three-month loan auction; cut-off rate at 14.57%

Banks raise 16 bln rubles in unsecured 5-week loans from CB, cutoff rate at 12.75%

Two Russian banks lose licenses

Central Bank to offer 10 bln rubles at 3-mth repo auction July 6

Central Bank to offer 175 bln rubles in unsecured loans at auction July 6

RUSSIAN BANKS

MERGERS & ACQUISITIONS, REGIONAL DEVELOPMENT

Sberbank confirms development plans in Belarus - Gref

Gazprombank buys VTB’s Swiss subsidiary for $91 mln

SHAREHOLDER STRUCTURE

Minfin disburses 100 bln rubles to boost VEB charter capital

Svyaz-Bank to place additional share issue worth 20 billion rubles in offer to VEB

LOANS

Sberbank lowers loan rates by average of point percentage point as of July 1

Sberbank loan provisioning ahead of schedule – Gref

Sberbank cuts interest rates on deposits

VEB invites banks to participate in $1-bln syndicated loan – source

Alfa Bank gets $320 mln subordinated loan from shareholders

VTB 24 boosts loan portfolio by 20 bln rubles in H1; deposits up 70 bln rubles

IFC loans Rosevrobank $20 mln for trade financing

INVESTMENT

Sberbank chief sees no serious competition in Opel deal

FINANCIAL INSTRUMENTS

Sberbank buys up $135 mln in subordinated Eurobonds from market

Gazprombank raised $120 mln in LPN private placement in May

MBRD redeems $100 mln in three-year Eurobonds

FINANCIAL RESULTS

VTB likely to see losses in 2009

VTB posts 26.45 bln rubles net loss in H1

VTB Europe provided $350 mln in earnings YTD - Kostin

Gazprombank posts IFRS net profit of 16.6 bln rubles in Q1

RATING ACTIONS

Moody’s withdraws ratings of Perm Krai

Moody’s Interfax withdraws ratings of Rostov Oblast

Fitch assigns MBRD fifth-series bond issue for 5 bln rubles ‘A-(rus)’ rating

Moody’s lowers ratings on three VTB foreign subsidiaries

Moody’s changes outlook on Absolut Bank’s BFSR of D- to negative

NONBANK FINANCIAL INSTITUTIONS

Moscow city to place 15 bln rubles in bonds July 8 - Pakhomov

TRENDS

DOLLAR, EURO GAIN GROUND ON RUBLE LAST WEEK

Govt debt market trends up

Eurobonds slide after bright start to week

Investors fail to put stock market back on winning track

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CIS AND THE BALTIC

UKRAINE

Ukraine’s state budget deficit at $357 mln in Jan-May

Ukraine’s balance of payments deficit totals $6.6 bln in Jan-May

National Bank of Ukraine registers Deutsche Bank subsidiary

BELARUS

Belarus receives over $600 million under IMF loan program

IMF urges Russia, other donors to increase foreign financing of Belarus

S&P affirms Belarus ratings, outlook negative

KAZAKHSTAN

Kazakhstan sees 0.4% inflation in June, 3.9% in H1

Economics Ministry expects GDP growth in 2009

Kazakh foreign debt down 2.5% in Q1

AZERBAIJAN

Central Bank of Azerbaijan sees forex reserves contract 17% in H1

GEORGIA

Georgian current accounts deficit contracts 51% in Q1

Georgia wants additional financial aid from IMF

ARMENIA

Armenian economy contracts 15.7% in Jan-May

Armenia sees 0.3% deflation in June, 5.2% inflation since start of 2009

World Bank approves $60-mln loan to support Armenian budget

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

Agency Interfax