PRESS: Russian govt prepares 2 tln rbl anti-crisis plan

MOSCOW, Jan 21 (PRIME) -- Russian Prime Minister Dmitry Medvedev will present a 101 point 2 trillion ruble anti-crisis plan, developed by the Economic Development Ministry, to President Vladimir Putin on Wednesday, business daily Kommersant reported.

Over the past three days, the plan’s composition was changed significantly. The ideas of zeroing value-added tax for imported raw materials and components, all innovations in the pension sphere, freezing salaries of state-run companies’ employees and discussion of natural monopolies’ tariffs with them were taken out of the plan, Kommersant reported.

Instead, the plan says the government will have the right to change the 2015 budget by direct adjustments of state programs, and it also cuts payments under state contracts by 20% in the year. The Pension Fund will be provided with 147.5 billion rubles to raise pensions if the consumer price inflation exceeds 6% in 2015, and about 50 billion rubles more will be transferred to help farmers.

BANKS

Previously, the Economic Development Ministry suggested an indefinite delay in the introduction of a short-term liquidity ratio under Basel III standards, and rejection of some Basel III standards, like an increase of capital adequacy to 6% from 5.5%, and making flat some Basel II standards, like calculations of operational risks and tougher valuation of market bond risks.

But now the ministry wants only to provide large banks with money from the National Wealth Fund, including 150 billion rubles to VTB Bank and 100 billion rubles to Gazprombank. The money must be spent on a 1% monthly increase of their loan portfolios to selected sectors of the producing economy. They must also work on refinancing external debt of good Russian borrowers at pre-crisis conditions.

State-run Vnesheconombank (VEB) will receive 300 billion rubles to inject them into capitals of systemically important companies that have financial problems, excluding metals and mining group Mechel or any other company that is running the risk of losing stability, a source close to VEB told the business daily.

(64.9862 rubles – U.S. $1)

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