Russian cbanker hopes for better Fitch rating soon

KAZAN, Oct 13 (PRIME) -- International rating agency Fitch may raise Russia’s rating of BBB-, which now has a negative outlook, because of an improved economic situation in the country, Central Bank Chairwoman Elvira Nabiullina said on Thursday.

“A rating review by rating firms … of course, we always hope that the rating will improve. Especially since there are reasons for that – macroeconomic stability and sustainability,” she told reporters.

“The fact that the economy is demonstrating signs of revival. The monetary policy and the budget policy are balanced, they ensure long-term stability for the Russian economy.”

She said that the consumer price inflation index will be close to the lower bracket of the official forecast of 5.5–6% in 2016.

“We did not change our forecast – it is 5.5–6%. But under our estimates inflation will likely be closer to the lower bracket of our forecast in 2016,” she said.

A return of Turkish agricultural products to the Russian market will not have a significant impact on inflation, she said. On Tuesday, the government allowed imports of oranges, tangerines, apricots, peaches, plums and blackthorn from Turkey.

“In terms of inflation this is one of the factors that can have influence. We don’t think that it will be significant. We will monitor the situation, inflation is so far falling in accordance with our forecasts and estimates. We hope it will continue this way,” she said.

She also said the government had agreed with the central bank’s proposals to change the bank bailout mechanism.

“It will be a shareholder form, we will enter shareholder capital of bailed out banks instead of providing loans to bailout agents chosen at a tender,” she said. The functions of a management company will be given either to a management company or to the Deposit Insurance Agency the central bank supervision, she also said, adding that the issue was still being discussed.

Nabiullina said separately the central bank had no information about oil major Rosneft selli8ng foreign currency for rubles on a large scale to buy the government’s stake in oil company Bashneft. Rosneft’s potential acquisition of its own shares will not affect the ruble, as the company has sufficient savings in rubles, she added.

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