**RUSSIAN ECONOMIC AND FINANCIAL DEVELOPMENTS**

**FOR WEEK ENDING OCTOBER 15, 1999**

** **

26 OCT 99

SOURCE: US EMBASSY MOSCOW

---------------------------

FINANCIAL MARKET INDICATORS

---------------------------

 

1. FINANCIAL MARKET TRENDS

 

THE MAJOR FACTORS AFFECTING THE MARKET THIS WEEK WERE

SPECULATION ABOUT WHEN THE NEXT IMF TRANCHE WOULD BE

RELEASED, THE WAR IN CHECHNYA, AND WHETHER PRIME

MINISTER PUTIN WOULD KEEP HIS JOB. ON THURSDAY, NON-

RESIDENT INVESTORS PUSHED THE RTS THROUGH THE 100

LEVEL, BUT THE RESIGNATION ON FRIDAY OF THE CHAIRMAN OF

THE FEDERAL COMMISSION ON THE SECURITIES MARKET PUSHED

THE RTS DOWN TO 95.10. FOR THE WEEK, THE RTS WAS UP

1.92 PERCENT ON MODERATE TO HIGH VOLUMES. THE STOCK

MARKET WAS SLIGHTLY UP FOR THE WEEK WITH THE RTS INDEX

INCREASING BY 1.92 PERCENT.

 

INTERNATIONAL RESERVES ROSE SHARPLY THIS WEEK, BY

USD400 MILLION OR 3.6 PERCENT, AND TOTALED USD11.6

BILLION.  THEMONETARY BASE ALSO INCREASED SHARPLY, BY

R7.5 BILLION OR 2.9 PERCENT. THE RUBLE INTERBANK SHORT-

TERM LOAN MARKET RATES DROPPED DUE TO THE HIGH RUBLE

LIQUIDITY ON THE MARKET. THE GOR DECREE ALLOWING THE

CBR TO ISSUE SHORT-TERM SECURITIES AND STATEMENTS

ANNOUNCING POSSIBLE CHANGES IN THE USE OF FROZEN S-

ACCOUNTS HOLD SOME PROMISE OF THE BEGINNINGS OF A

REVIVAL OF RUSSIA'S FINANCIAL MARKET.

 

---------------------------------------------

2. ECONOMIC AND FINANCIAL MARKET DEVELOPMENTS

---------------------------------------------

 

-- ACCORDING TO HEAD OF THE MOSCOW TAX INSPECTORATE

GENNADY BUKAEV, CURRENTLY, R3.3 BILLION OF TAX PAYMENTS

ARE FROZEN IN MOSCOW BANKS ACCOUNTS.  AT THE BEGINNING

OF THE YEAR, THIS NUMBER WAS R6 BILLION.

 

-- ACCORDING TO GENNADY BUKAEV, PRIVATE INDIVIDUALS

TRANSFERRED R17.6 BILLION OF INCOME TAXES TO THE

CONSOLIDATED BUDGET DURING THE FIRST 9 MONTHS OF 1999.

 

-- ACCORDING TO THE LABOR MINISTER SERGEY KALASHNIKOV,

THE MINIMUM SURVIVAL SALARY IN MOSCOW IS THREE TIMES

HIGHER THAN IN OTHER CITIES AND REGIONS, AND TOTALS

R26OO.

 

-- ACCORDING TO SERGEY KALASHNIKOV, WAGE ARREARS

DECLINED BY 30 PERCENT DURING 1999 AND CURRENTLY TOTAL

R56 BILLION. PENSION ARREARS HAVE BEEN LIQUIDATED AND

THE GOR PLANS A 15 PERCENT INCREASE IN PENSIONS

STARTING NOVEMBER 1, 1999.  THE MINIMAL PENSION WILL

EQUAL R36O.

 

-- ACCORDING TO TRADE MINISTER MIKHAIL FRADKOV, US

DIRECT INVESTMENT IN RUSSIA TOTALS USD4.1 BILLION, 31.5

PERCENT OF THE TOTAL ACCUMULATED DIRECT INVESTMENT.

 

-- -- ON OCTOBER 13, PRIME MINISTER PUTIN SIGNED A

DECREE ALLOWING THE CBR TO BEGIN RE-ISSUING ITS SHORT-

TERM BILLS, WIDELY KNOWN IN THE MARKET AS BOBRS

(BEAVERS). THE CBR WAS FORCED TO SUSPEND ITS BOBR

ISSUES IN EARLY 1999 DUE TO A REGULATORY DISPUTE WITH

THE RUSSIAN FEDERAL SECURITIES COMMISSION (RFSC). THE

DECREE REQUIRES THE RFSC TO GRANT THE MINISTRY OF

FINANCE THE RIGHT TO REGISTER THESE BILLS WITHIN ONE

WEEK. THE CBR PLANS TO PLACE THE FIRST ISSUE IN THREE

TO FOUR WEEKS, WITH EXPECTED YIELOS OF 25-45 PERCENT.

 

--------------

3.  BANK ALERT

--------------

 

-- THE CENTRAL BANK OF RUSSIA (CBR) REPORTED RUSSIA'S

GOLD AND CURRENCY RESERVES AT USD11.6 BILLION ON

OCTOBER 8, UP USD400 MILLION FROM THE PREVIOUS FRIDAY.

THE ABOVE TOTAL INCLUDES USD4.4 BILLION WORTH OF GOLD

ANO USD289.9 MILLION IN ASSETS HELD BY THE CBR AMONG

ITS FOREIGN SUBSIDIARIES.

 

-- IN THE FIRST NINE MONTHS OF THE YEAR RUSSIA'S GOLD

AND CURRENCY RESERVES CONTRACTED BY MORE THAN A BILLION

USD, FROM USDI2.223 BILLION ON JANUARY 1 TO USD11.2I2

BILLION ON OCTOBER 1. HOWEVER, DURING THAT PERIOD

RESERVES WERE USED TO MAKE DEBT SERVICING PAYMENTS

WHICH TOTALED ABOUT USD7 BILLION.

 

-- THE CBR'S SHARES IN ITS FOREIGN SUBSIDIARIES WILL

NOT BE SOLD BY THE END OF THIS YEAR AS THE IMF HAS

DEMANDED, FIRST DEPUTY PRIME MINISTER VIKTOR KHRISTENKO

SAID IN A NEWSPAPER INTERVIEW.  CBR CHAIRMAN VIKTOR

GERASHCHENKO CALLED THE DEMAND "ILLEGAL ANDSTUPID."

AS OF JANUARY 1, THE CBR HOLDS 88.9 PERCENT OF MOSCOW

NARODNY BANK (LONDON), 77.8 PERCENT IN EUROBANK

(PARIS), 82 PERCENT OF OST WEST HANDELSBANK

(FRANKFURT), 49 PERCENT OF DONAU-BANK (VIENNA), AND 49

PERCENT OF EAST-WEST UNITED BANK (LUXEMBOURG).

 

-- THE CBR WILL PULL THE OPERATING LICENSES OF ANOTHER

50 BANKS BY THE END OF THE YEAR, HEAD OF BANK

REORGANIZATION AT THE CENTRAL BANK, ANDREI VINOGRADOV,

SAID AT A BANKING FORUM IN MOSCOW.  "THESE BANKS ARE

EXHIBITING ALL THE SIGNS OF FINANCIAL INSOLVENCY," HE

SAID.

 

-- THE CBR HAS RAISED MINIMUM CHARTER CAPITAL

REQUIREMENTS FOR NEW BANKS FROM R25.07 MILLION TO

R26.46 MILLION, THE EQUIVALENT OF 1 MILLION EUROS, A

CBR OFFICIAL TOLD INTERFAX NEWS AGENCY.  CAPITAL

REQUIREMENTS ARE SET IN EUROS, AND THEIR RUBLE

EQUIVALENT IS ADJUSTED QUARTERLY TO REFLECT CHANGES IN

THE EXCHANGE RATE. THE CBR ORDER SETTING THE FOURTH

QUARTER RUBLE EQUIVALENT WAS SIGNED ON OCTOBER 4, 1999

AND WENT INTO FORCE IMMEDIATELY.  THE MINIMUM CHARTER

CAPITAL FOR NEW NON-BANK LENDING INSTITUTIONS, EXCEPT

FOR SUBSIDIARIES OF FOREIGN BANKS, WAS RAISED FROM

R2.507 MILLION TO R2.646 MILLION, THE EQUIVALENT OF

100,000 EUROS. THE CHARTER CAPITAL MINIMUM FOR A

LENDING INSTITUTION THAT IS A SUBSIDIARY OF A FOREIGN

BANK WAS RAISED FROM R250.7 MILLION TO R264.6 MILLION,

OR 10 MILLION EUROS. THE MINIMUM EQUITY CAPITAL FOR

BANKS APPLYING FOR A GENERAL LICENSE WAS RAISED FROM

R125.35 MILLION TO R132.3 MILLION, OR 5 MILLION EUROS.

 

-- THE CBR WILL ALLOW FOREIGN BANKS TO INVEST RUBLES

FROM S-TYPE ACCOUNTS IN THE SHARES OF RUSSIAN

COMMERCIAL BANKS. A CBR OFFICIAL SAID THE RELEVANT

DECREE EXTENDS TO FOREIGNERS THE SAME ABILITY TO INVEST

GOVERNMENT SECURITIES IN THE CHARTER CAPITAL OF BANKS

THAT RUSSIAN RESIDENTS ALREADY HAVE.  MOREOVER, ONCE

THE GOVERNMENT SECURITIES ARE INVESTED IN THE CAPITAL

OF A RUSSIAN BANK, FOREIGNERS WILL ALSO BE ABLE TO

INVEST RUBLES FROM S- TYPE ACCOUNTS IN THE BANK IN AN

AMOUNT EQUAL TO THE VALUE OF THE SECURITIES.  HOWEVER,

THE OFFICIAL NOTED THAT FOREIGNERS CANNOT OWN MORE THAN

25 PERCENT OF A RUSSIAN BANK.  FOREIGNERS ARE LIKELY TO

INVEST THEIR S ACCOUNT FUNDS IN THEIR SUBSIDIARIES IN

RUSSIA.

 

-- THE CBR IS WORKING ON A DOCUMENT THAT WILL ALLOW

OVERSEAS INVESTORS TO TRANSFER SECURITIES AND MONEY

HELD IN S-TYPE ACCOUNTS AMONG THEMSELVES, ACCORDING TO

THE HEAD OF OPEN MARKETS AT THE CENTRAL BANK,

KONSTANTIN KORISCHENKO.  INVESTORS WILL BE ABLE TO

TRANSFER FUNDS FROM THE ACCOUNT OF ONE COMPANY TO

ANOTHER. KORISCHENKO SAID THE DECISION RECOGNIZES THAT

OVERSEAS INVESTORS OFTEN REGISTERED THEIR SECURITIES IN

THE NAME OF OTHER FOREIGN COMPANIES, MEANING THAT S-

TYPE ACCOUNTS OF ONE FOREIGN INVESTOR ARE HELD IN

ANOTHER NONRESIDENT ACCOUNT.

 

-- THE CBR IS ALSO WORKING ON A DOCUMENT THAT WILL

ALLOW FOREIGN INVESTORS TO USE THEIR S-TYPE ACCOUNTS TO

INVEST IN PROJECTS IN RUSSIA, KORISCHENKO REPORTED.

HOWEVER, THE CBR IS STILL ANALYZING THE FORM OF A

DECREE. KORISCHENKO NOTED ONE WORRY IS THAT COMPANIES

RECEIVING THE INVESTMENT COULD EXCHANGE THE MONEY INTO

DOLLARS, FOR EXAMPLE TO IMPORT EQUIPMENT, AND THAT THE

AMOUNT OF INVESTMENT SHOULD THEREFORE BE "SENSIBLY

LIMITED."

 

-- THERE ARE 19 BANKS IN RUSSIA, INCLUDING FIVE

NONRESIDENT BANK SUBSIDIARIES, WITH THE RIGHT TO MANAGE

S- TYPE ACCOUNTS, WHICH TOTALED R11.2 ON JULY 1, 1999.

NONRESIDENT BANK SUBSIDIARIES HELD R8.7 BILLION OF THIS

SUM.  THE MAINHOLDERS OF S-TYPE ACCOUNTS ARE ING-BANK

(EURASIA), CITIBANK T/O AND CHASE MANHATTAN BANK

INTERNATIONAL, WHICH HOLD THREE-QUARTERS OF THE FUNDS

HELD IN S-TYPE ACCOUNTS BY ALL RUSSIAN BANKS.

 

-- THE TAX MINISTRY SAYS THAT RUSSIAN COMMERCIAL BANKS,

INCLUDING THOSE THAT HAVE LOST THEIR OPERATING

LICENSES, OWE ABOUT R33 BILLION IN BACK TAXES.  AN

INTER-AGENCY GOVERNMENT COMMISSION PLANS TO LOOK AT THE

CASES OF EIGHT BANKS THAT FAILED TO PAY R3.5 BILLION IN

TAXES IN FOUR MONTHS.

 

-- THE COMBINED CAPITAL OF THE RUSSIAN BANKING SYSTEM

COULD REACH ITS PRE-CRISIS LEVEL OF R120 BILLION BY THE

END OF THIS YEAR OR EARLY NEXT YEAR, ACCORDING TO BORIS

SAFRONOV, HEAD OF PRUDENTIAL REGULATION AT THE CBR.

THIS WILL BE POSSIBLE IF ALL MEASURES PLANNED BY THE

CBR ARE IMPLEMENTED, HE SAID, INCLUDING USING R10

BILLION IN ARCO CAPITAL TO RECAPITALIZE BANKS,

CONTRIBUTING R3 BILLION TO THE CHARTER CAPITAL OF THE

RUSSIAN DEVELOPMENT BANK, AND PULLING THE LICENSES OF

BANKS WITH NEGATIVE CAPITAL.  SAFRONOV SAID THESE

MEASURES WOULD INCREASE THE STATE SHARE IN BANK CAPITAL

FROM 27 PERCENT TO 34 PERCENT.

 

-- THE FEDERATION COUNCIL VOTED DOWN THE BILL ON

GUARANTEEING PRIVATE BANK DEPOSITS. THE AUTHOR OF THE

BILL, DUMA BANKING SUBCOMMITTEE CHAIRMAN PAVEL

MEDVEDEV, SAID THE MEASURE CANNOT BE ADOPTED UNTIL NEXT

YEAR AT THE EARLIEST.

 

---------

4. PRICES

---------

 

ACCORDING TO THE RUSSIAN STATISTICAL AGENCY, INFLATION

FOR THE FIRST 11 DAYS OF OCTOBER TOTALED 0.5 PERCENT.

FOR THE PERIOD OCT.05-11 PRICES GREW BY 0.3 PERCENT.

AVERAGE DAILY INFLATION DECREASED THIS MONTH TO 0.O43

PERCENT, COMPARED WITH 0.049 IN SEPTEMBER, WHEN THE

INFLATION RATE WAS 1.5 PERCENT.

 

------------------------------

5.   FINANCIAL MARKET TABLES

------------------------------

 

-----------------------------------------------------------

A. THE FOREX MARKET STABILIZES, THE RUBLE WEAKENS JUST

O.47 PERCENT FOR THE WEEK

-----------------------------------------------------------

 

THE FOREX MARKET WAS FAIRLY STABLE LAST WEEK, WITH THE

RUBLE SLOWLY FIRMING MONOAY THROUGH THURSDAY. THE RUBLE

RETREATED ON FRIDAY AS BANKS OPTED TO STAY IN FOREIGN

CURRENCY FOR THE WEEKEND.  HOWEVER, EVEN THEN THE CBR

RETAINED FULL CONTROL OF THE MARKET, BUYING DOLLARS

CHEAPLY AT THE BEGINNING OF THE MORNING SESSION AND

SELLING LATER WHEN THE DOLLAR RATE ROSE.  THUS, THE CBR

MANAGED TO INCREASE ITS CURRENCY RESERVES DURING THE

WEEK.  FOR THEWEEK AS A WHOLE, THE "TOD" DOLLAR WENT UP

JUST O.47 PERCENT AGAINST THE RUBLE.  AVERAGE DAILY

TURNOVER IN THE MORNING SESSION WAS DOWN 20 PERCENT FROM

THE PREVIOUS WEEK TO USD130.4 MILLION.  AVERAGE AFTERNOON

SESSION ("TOM") TURNOVER DECLINED EVEN MORESHARPLY, BY

41 PERCENT, TO USD47.1 MILLION.

 

TABLE 1A:  RUBLERATES -- MICEX SELT TRADING (NOTE 1)

 

 ------------------------------------------------

          USD-TOD   USD-TOD   USD-TOM   USD-TOM

  DATE   AVERAGE   VOLUME    AVERAGE   VOLUME

            PRICE   (USD MN)   PRICE   (USD MN)

 ------------------------------------------------

 10/11/99      NO TRADING      25.7792    24.80

 10/12/99  25.7374     145.98  25.7800   30.90

 10/13/99  25.7045     171.36  25.6497   42.20

 10/14/99  25.6734     174.60  25.7448   64.20

 10/15/99  25.8024     160.13  25.9113   73.20

 

TABLE 1B:  RUBLERATES -- CASH RATES AT EXCHANGE POINTS

(RUBLES PER USD) (NOTE 2)

-------------------------------------------------

                    PRCT CHNG           PRCTCHNG

  DATE    AVERAGE   AGAINST   AVERAGE   AGAINST

             BUY    WEEKAGO    SELL    WEEK AGO

-------------------------------------------------

 10/11/99   25.58        0.51   25.86        0.19

 10/12/99   25.65       -0.04   25.86       -0.65

 10/13/99   25.67        0.31   25.83       -0.23

 10/14/99   25.62        0.31   25.84        0.16

 10/15/99   25.69        0.35   25.94        0.27

 

TABLE 1C:  RUBLERATES-- CBR OFFICIAL EXCHANGE RATE

 -----------------------------------------

                     PRCT CHNG  PRCT CHNG

  DATE   OFFICIAL   AGAINST    AGAINST

            RATE     WEEKAGO   09/08/98

 -----------------------------------------

 10/11/99  25.7600        2.22      51.62

 10/12/99  25.7600        1.06      51.62

 10/13/99  25.7400       -0.62      51.50

 10/14/99  25.7000       -0.31      51.27

 10/15/99  25.6700       -0.19      51.09

 

-------------

B. OFZ MARKET

-------------

 

IN SPITE OF THE HIGH RUBLE LIQUIDITY IN THE MARKET,

SPARE RUBLES DIDN'T REACH THE SECONDARY OFZ MARKET,

WHICH WITNESSED A WEEK OF CONTINUOUS DECLINE.  IN THE

MIDDLE OF THE WEEK, LONGER TERMS ISSUES WERE IN DEMAND,

HOWEVER, BY FRIDAY THEIR YIELDS HAD INCREASED TO 88

PERCENT P.A. COMPARED WITH 83 PERCENT P.A. LAST FRIDAY.

THE SHORTEST OFZ ISSUE LOST IT'S ATTRACTION, AND ITS

YIELD COLLAPSED FROM 57.1 PERCENT P.A. AT THE END OF

THE LAST WEEK TO 66.6 PERCENT P.A. AT THE FRIDAY CLOSE.

CURRENTLY, THREE ISSUES ARE HOLDING THE MARKET DOWN -

THE EXPECTED APPEARANCE OF NEW RESTRUCTURED OFZ ISSUES

ON THE MARKET, THE CBR'S ISSUANCE OF BONDS, AND THE

CBR'S SPECIAL CURRENCY AUCTION AT THE END OF OCTOBER.

 

------------------------------

TABLE 3A: OFZ SECONDARY MARKET

------------------------------

 

         11.04.99  12.05.99  13.06.99  14.07.99 15.08.99

 TOTAL

 TRADE      N/A       N/A       N/A       N/A       N/A

 VOLUME

(MLN RUB)

 

 ----------------------------------------------------

C. SHORT-TERM INTERBANK DOWN

-----------------------------------------------------

 

SHORT-INTERBANK RUBLE LOAN MARKET RATES DECREASED

FURTHER THIS WEEK. AT THE BEGINNING OF THE WEEK, THERE

WAS A RUBLE DEFICIT ON THE MARKET.  HOWEVER, THE RUBLE

MASS INCREASED SUBSTANTIALLY DURING THE WEEK, AS

INDICATED BY THE INCREASING BALANCES ON BANKS'

CORRESPONDENT ACCOUNTS IN THE CBR, WHICH POPPED UP BY

MORE THAN R4 BILLION DURING THE WEEK.

 

 --------------------------

 TABLE 4:INTERBANK CREDIT

 --------------------------

 

  DATE                      PERIOD(IN DAYS)

 -----------------------------------------------------

                   1     7     14     30     60     90

 -----------------------------------------------------

 

 OCT 11   MIBID   08.6  LO.O   13.0   20.O   22.0  25.0

          MIBOR   15.O   20.0  23.O   30.0   35.0  39.O

 

 OCT 12   MIBID   14.0  10.0   12.O   17.0   21.0  25.0

          MIBOR   23.6   22.0  26.0   31.O   33.0  40.0

 

 OCT 13   MIBID   12.6  12.0   14.0   19.0   21.0  25.0

          MIBOR   20.2   24.0  25.0   31.0   35.0  40.0

 

 OCT 14   MIBID   O9.8  10.O   12.0   17.O   19.O  23.0

          MIBOR   17.O   20.O  22.O   30.0   32.O  4O.O

 

 OCT 15   MIBID   05.5  10.0   13.O   18.0   22.0  26.O

          MIBOR   12.0   20.O  23.0   31.O   35.0  41.O

 

--------------------------------------------

D. STOCK MARKET VOLATILE BUT UP FOR THE WEEK

--------------------------------------------

 

THE PREVIOUS WEEK'S UPWARD TREND CONTINUED ON MONDAY,

FUELED BY ADR PRICE INCREASES.  LATER IN THE WEEK, TINY

DOWNWARD PRICE CORRECTIONS TOOK PLACE ON A MODERATE

VOLUMES.  ONTHURSDAY, NON-RESIDENT INVESTORS ENTERED

THE MARKET AND THE RTS INDEX PIERCED THROUGH THE 100

LEVEL ON A HEALTHY VOLUME OF USD12.5 MILLION.  HOWEVER,

THE RESIGNATION OF THE CHAIRMAN OF THE FEDERAL

COMMISSION ON THE SECURITIES MARKET DMITRY VASILIEV, AND

NEGATIVE US STOCK PERFORMANCE, PUSHED THE RTS DOWN TO

95.10 AT THE END OF THE WEEK. OVERALL TRADE ACTIVITY WAS

HIGH THROUGHOUT THE WEEK AND THE RTS INDEX GAINED 1.92

PERCENT IN REAL TERMS FOR THE WEEK.

 

--------------------------

TABLE 5: RTS STOCK INDICES

--------------------------

                                               DOLLAR

 DATE    RTS INDEX       PERCENT CHANGE     ADJUSTED

          (R)      NOMINAL (RUB) REAL (USD)

OCT 11     N/A          N/A        4.16      97.19

OCT 12     N/A          N/A      -0.97     96.25

OCT 13 555.85          N/A      -0.23     96.03

OCT 14 579.73          4.30       4.46    100.31

OCT 15 548.98         -5.30       -5.19      95.10

 

E. INTERNATIONAL RESERVES                      -

-------------------------

 

INTERNATIONAL RESERVES OF THE CENTRAL BANK AND THE

FINANCE MINISTRY INCREASED AGAIN THIS WEEK BY USD400

MILLION AND TOTALEO US011.6 BILLION.  THIS IS THE

LARGEST INCREASE IN RESERVES SINCE JULY 30, 1999.

ACCORDING TO THE OFFICIAL PRESS RELEASE OF THE CBR,

INTERNATIONAL RESERVES INCLUDE US0289.8 MILLION LOCATED

IN THE CBR'S OVERSEAS SUBSIDIARIES.

 

-----------------------------------------

TABLE 6: INTERNATIONAL RESERVES (NOTE 5)

-----------------------------------------

 

INTERNATIONAL BLN USD  PERCENT CHG  PERCENT CHG

RESERVES                 PREV WK     01.01.99

 

10.08.99         11.6       3.6       -04.9

10.01.99         11.2       2.8       -08.2

09.24.99         10.9       0.0       -10.7

09.17.99         10.9       0.0       -10.7

09.10.99         10.9      -1.8       -10.7

 

----------------

F. MONETARY BASE

----------------

 

THE MONETARY BASE INCREASED FOR THE FIRST TIME IN THREE

WEEKS, TO A TOTAL OF R266.5 BILLION.  THE BASE

INCREASED BY 2.9 PERCENT, THE LARGEST INCREASE SINCE

APRIL 14, 1999.

 

--------------------------------

TABLE 7: MONETARY BASE (NOTE 6)

--------------------------------

 

MONETARY  BLN RUBLES    PRCTCHNG FROM      PRCT CHNG FROM

BASE                      PREV. WEEK        PREV. 4 WK AVG

 

10.04.99     266.5          -2.89                 1.4

10.04.99     259.0          -1.00                -1.8

09.27.99     261.6          -1.13                -1.0

09.20.99     264.6          -0.56                -0.1

09.13.99     266.1           1.45                 0.4

 

--------------------------

G. CORRESPONDENT ACCOUNTS

--------------------------

 

-------------------------------------------

TABLE 9: BALANCES ON CORRESPONDENT ACCOUNTS

-------------------------------------------

 

        DATE                BALANCE (BLN RUB)

      10.11.99                    49.821

      I0.12.99                    52.639

      10.13.99                    52.814

      10.14.99                    54.308

      10.15.99                     54.015

 

-----------------------

H. RESERVE REQUIREMENTS

-----------------------

 

BANK RESERVES REQUIREMENTS REMAIN UNCHANGED SINCE JUNE 10,1999

 

------------------

------------------

EXPLANATORY NOTES

------------------

 

1. EXCHANGE RATES: SELT - "SYSTEM OF ELECTRONIC LOT

(CURRENCY) TRADING" - A COMPUTER-BASED OTC-TYPE TRADING

SYSTEM ORGANIZED BY THE MOSCOW INTERBANK CURRENCY

EXCHANGE (MICEX). USD-TOD PRICE IS THE PRICE OF THE

DOLLAR WITH THE SAME DAY DELIVERY.  USD-TOM PRICE IS

THE PRICE OF THE DOLLAR WITH DELIVERY ON THE NEXT DAY.

MINIMUM LOT SIZE FOR EACH OF THE DOLLAR INSTRUMENTS IS

USDLOO,OOO. AVERAGE PRICE IS QUOTED AS THE WEIGHTED

AVERAGE OF ALL THE BIDS AND OFFERS ENTERED INTO THE

SYSTEM BY VARIOUS BANKS.

 

2. AVERAGE CASH RATES ARE QUOTED AS CALCULATED BY THE

INTER-LINE INFORMATION AGENCY THAT PROCESSES DATA FROM

OVER 500 EXCHANGE POINTS IN THE CITY OF MOSCOW.

 

3. INTEREST RATES: THE TABLE PROVIDES MOSCOW INTERBANK

BID (MIBID) AND MOSCOW INTERBANK OFFERED RATE (MIBO

R)

-- ANNUALIZED AVERAGE BID AND OFFER RATES ON SHORT-TERM

RUBLE LOANS BETWEEN COMMERCIAL BANKS.

 

4. STOCK INDICES: THE RTS INDEX, IS THE ONLY OFFICIAL

INDICATOR OF THE RUSSIAN TRADING SYSTEM.  IT IS

CALCULATEO EVERY 30 MINUTES OF THE RTS TRADE SESSION,

STARTING FROM 12:00. IT COMPRISES 60 SHARES OF 35

LEAOING COMPANIES. THIS SHARES ARE INCLUOED IN SO-

CALLEO CATEGORY "A" LISTING.  THE INDEX INDICATES OVER-

THE-COUNTER STOCK PRICES.  THE INDEX REPRESENTS THE

RATIO OF THE TOTAL MARKET CAPITALIZATION OF THE SHARES

OF THE COMPANIES SELECTED FOR THE INDEX TO THE TOTAL

MARKET CAPITALIZATION OF THE SAME SHARES AS OF THE

INITIAL DATE MULTIPLIED BY THE INDEX VALUE AS OF THE

INITIAL DATE (31 DECEMBER, 1997) USING A BASE OF 100

BEGINNING SEPTEMBER 1, 1995.  THE RUBLE-ADJUSTED INDEX

IS A DERIVATIVE OF THE MAIN DOLLAR INDEX, USING THE

SAME BASE.

 

5. INTERNATIONAL RESERVES OF THE RUSSIAN FEDERATION

REPRESENT THE AMOUNT OF RESERVE ASSETS OF THE BANK OF

RUSSIA AND FINANCE MINISTRY.  THOSE RESERVE ASSETS ARE

COMPRISED OF MONETARY GOLD, SPECIAL DRAWING RIGHTS, THE

RESERVE POSITION IN THE IMF AND OTHER LIQUID FOREIGN

CURRENCY ASSETS. THE LATTER INCLUDE SHORT-TERM

DEPOSITS IN NONRESIDENT AND RESIDENT BANKS, BALANCES IN

CURRENT ACCOUNTS, FOREIGN GOVERNMENT SECURITIES, REPO

AGREEMENTS WITH THESE SECURITIES MADE WITH

NONRESIDENTS, AND OTHER LIQUID ASSETS (ACCRUED INTEREST

ON THESE ASSETS IS NOT INCLUDED).  MONETARY GOLD IS

EVALUATED AT USD300 PER TROY OZ.  FOREIGN CURRENCY

ASSETS ARE CONVERTED INTO US DOLLARS ON THE BASIS OF

THE CROSS RATES OF FOREIGN CURRENCIES TO THE USD,

CALCULATED USING THE OFFICIAL RATES OF THE RUBLE TO

THESE FOREIGN CURRENCIES, SET BY THE CBR.

 

6. MONETARY BASE (ML) IS COMPRISED OF CASH AND RESERVES

OF COMMERCIAL BANKS ON DEPOSIT IN THE CBR.  IT IS THE

BASIC PART OF THE MONEY SUPPLY (M2).

 

7. LOMBARD CREDITS, DISTRIBUTED THROUGH AUCTIONS, ARE

AIMED TO PROVIDE THE LIQUIDITY TO THE BANKING SECTOR.

THESE CREDITS ARE EXTENDEO TO BANKS ON THE BASIS OF

COLLATERAL (T-BILLS, OR MORE RECENTLY, SHARES).