Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (22198)	10/24/1998 5:55:00 PM
From: Alex	Read Replies (1) \| Respond to of 116795

Central Bank to Buy Gold-Backed Bonds MOSCOW, Oct. 23, 1998 -- (Reuters) The Russian central bank will buy bonds backed by 50 tonnes of gold from the State Precious Metals and Stones Reserve (Gokhran) next week, Gokhran chief German Kuznetsov said on Friday. "We proposed to central bank chief Victor Gerashchenko that the bank should buy all the securities," Kuznetsov told a news briefing. "The proposal was accepted. We will conclude the deal next week," he added. Kuznetsov said the bond issue was necessary to finance gold production in Russia. He added that the issue had been prepared before Aug. 17, when the government froze the ruble debt market and effectively devalued the ruble, sparking economic crisis. Originally Gokhran had been in discussions with Western banks about buying the bond issue, Kuznetsov said, adding that some had expressed interest. But the operation fell victim to the aftermath of the Aug. 17 crisis, and Gokhran decided instead to sell the whole issue to the central bank, which said recently that it would increase gold reserves as part of a plan to back an increase in the money supply. ( (c) 1998 Reuters) russiatoday.com