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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: TokyoMex who wrote (1841)	8/17/1998 4:56:00 AM
From: TokyoMex	Read Replies (1) \| Respond to of 119973

Russian central banks..spending,,1 bil per week to defend Rubles... Monday, Aug 17.. Financial Times, London,, Russian central bank calls on public to remain calm By John Thornhill in Moscow Russia's central bank appealed to the public to remain calm at the weekend as rumours swirled around Moscow that some of the country's biggest banks were experiencing severe liquidity problems. "There is no reason today to run to a bank and collect one's savings," Denis Kisilyov, a deputy chairman of the bank, said in a television interview. The central bank faces two critical challenges this week as it fights to defend the value of the rouble and preserve confidence in the country's troubled banking sector. The outcome could shape the course of the country's economic reforms for months to come. Public reaction to the central bank's appeals for calm will test the level of confidence in the country's banking system. Some bank branches were forced to close on Friday following the turmoil on Russia's financial markets during the course of the week. Mr Kisilyov said: "We are working attentively with the heads of the biggest banks, primarily with those that attract considerable investments from the population, to prevent any interruption to the normal working of the banks." Sergei Dubinin, the central bank governor, cut short his holiday to meet Sergei Kiriyenko, prime minister, at the weekend to work out the government's response to the latest financial crisis, which has savaged Russia's equity and bond markets and threatens to force a rouble devaluation. The central bank is currently spending between $800m to $1bn of its reserves a week to defend the rouble. Its total gold and hard currency reserves stood at $17bn on August 7. Mr Kiriyenko is due to meet President Boris Yeltsin today at his holiday home on the edge of Moscow to discuss the crisis. So far, Mr Yeltsin has refused to return to the Kremlin, fearing the population would panic if he cut short his holiday. Many of Russia's 1,700 banks, which have big exposures to both internal and external government debt, have seen the value of their assets plunge in recent weeks, causing alarm among foreign lenders. The inter-bank lending market has all but dried up amid the turmoil. "The best way to address a systemic problem is to address it systematically and for the finance ministry and central bank to talk to all the biggest domestic and foreign banks about how they might solve this problem," said one Moscow-based western banker. About three-quarters of Russia's household bank savings are held by Sberbank, the state savings bank, which is considered to be relatively well insulated against the current financial crisis. But other big retail savings banks - such as SBS-Agro, Rossiisky Kredit and Inkombank - are thought to be more vulnerable.