Russia rushes through bank recapitalisation bill

Moscow

A BILL authorising a one trillion rouble (S$22.1 billion) recapitalisation of banks was rushed through Russia's Lower House of Parliament.

Legislators in the State Duma approved the bill in all three readings on Friday, allowing the Finance Ministry to issue new OFZ bonds that will be exchanged for subordinated bonds of recapitalised banks.

The bill adds to efforts by Russian authorities to boost confidence in the financial system in response to the slump in the rouble, which has lost 45 per cent against the US dollar this year. The currency fell to a record 80.1 per US dollar at one point on Dec 16, even as the central bank raised its key i…