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Russia to invest billions buying up stocks
Edinburgh News.Net
Saturday 11th October, 2008
Russia will enter local stock markets next week to buy up billions of rubles of stocks, to help shore up markets.
The Russian government has set aside 175 billion rubles, the equivalent of $6.7 billion, to buy up stocks this year, and the same amount to invest in stocks next year.
The National development bank Vnesheconombank will supervise the buying operation, according to Russian Prime Minister Vladimir Putin.
The Russian markets have beed badly affected by the recent sell-offs, with the local exchange being regularly shut down as loss limits were reached.
The government however has acted aggressively to bring the situation under control. The Kremlin has committed $20 billion to combat the crisis in the financial markets, as part of an overall $200 billion rescue package.
The announcement by Putin to journalists outside his home was the first sign that the government was prepared to buy shares.
The moves follows a similar announcement by U.S. Treasury Secretary Hank Paulson that the U.S. government will buy shares in banks and other financial institutions, including insurance companies.
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Comments on this story
Sammy
10-11-08, 01:17 PM |
Russia to invest billions buying up stocks
Governments should be responsible in keeping financial stability, also they should impose severe controls to avoid irrisponsible speculation that are the basis for bank failures.
Sammy
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;) Midnight
10-11-08, 01:43 PM |
The banks are not regulated enough this is a fact, I would like to help verbally but perhaps there is something else that can be done.
This country has worked hard enough that is should be rock hard, corruption doesn’t seen to be a factor I believe there is another problem taking action again.
(MS I had to too)The public and private answer is still no to you all. I will win.
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waltky
10-12-08, 01:15 AM |
Well, at least we’re taking Russia down with us...
:o
IMF now fears global meltdown
Saturday 11th October, 2008 - The International Monetary Fund has warned that it is possible the global financial crisis will create a worldwide meltdown.
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The IMF has said the global economic slowdown could now turn into a dangerously deep recession. After the United States government last week appealed for patience to allow their bailout plan to work, the International Monetary Fund stressed that time was running out, after the leading industrialised nations failed to largely agree on measures to end the crisis at a pre-weekend meeting.
IMF chief Dominique Strauss-Kahn said: “Solvency concerns about a number of the largest US-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown." With confidence plummeting in world markets, panic has taken over, prompting banks to hoard cash and choke off lending facilities.
Meanwhile, France and Germany are moving ahead to try to prevent the worst global downturn in decades. French President Nicolas Sarkozy and German Chancellor Angela Merkel have indicated they have been working on another bailout plan to put to European leaders at a Sunday meeting The emergency meeting of euro zone leaders will discuss a bank rescue package, as part of a joint solution.
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