Russia Earmarks Extra $58 Billion to Ease Bank Funding Shortage - Bloomberg

Russia Earmarks Extra $58 Billion to Ease Bank Funding Shortage - Bloomberg:



"Russia’s central bank is adding 2 trillion rubles ($58 billion) to a financing program aimed at tackling a cash shortage at lenders that has worsened this year as bond markets cut off borrowers.



The Bank of Russia expects lenders will need 7 trillion rubles to help meet refinancing needs through year end, Chairman Elvira Nabiullina said at a news briefing in Moscow yesterday. That’s up from a previous estimate of 5 trillion rubles in 2014, which was surpassed by June 1, according to the regulator’s data. 




Russian lenders have become more reliant on the central bank for funding as foreign investors dumped the nation’s assets, deterred by the escalating crisis in Ukraine, which also choked off borrowers’ access to global debt markets. Central bank loans comprised 8.2 percent of the banking industry’s funding as of June 1, an increase from 5.4 percent at the start of 2013, the data show."



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