25 April 2002 00:00
DEPUTY PRIME MINISTER AND FINANCE MINISTER ALEXEI KUDRIN ADDRESSES CONGRESS OF ASSOCIATION OF RUSSIAN BANKS
Alexei Kudrin, Deputy Prime Minister and Minister of Finance of the Russian Federation, spoke at the 12th Congress of the Association of Russian Banks. He said the Government is not going to create any additional obstacles to the flow of foreign capital into the banking sector of the country in relation to the entry of Russia into the World Trade Organization.
Kudrin also said Russia's current banking reform is "one of the most ambitious" and that the presence of foreign investment helps strengthen the Russian banking system. At the same time he urged bankers to draw attention to increasing the authorized and equity capital of banks, as well as capital sufficiency standards. Regional banks, he said, currently react more actively to signals from the Government and the Central Bank and are striving to augment their capital, while most banks in Moscow are taking no measures. The Deputy Prime Minister noted that a Law On Guaranteeing Individuals' Deposits in Commercial Banks may be adopted by the end of the year, which will help enhance control over banks and attract individuals' money to credit organizations. Besides, Kudrin reiterated the state's intention gradually to withdraw from large banks' capital. "I hope that in 2002 the Bank of Russia will withdraw from the capital of Vneshtorgbank [Foreign Trade Bank], and then a program for its gradual privatization will begin," he said. On the whole, Kudrin noted, the Government of the Russian Federation intends to reduce the level of state regulation in the economy of the country.
Speaking of inflation figures in the current year, Kudrin gave an assurance that they will not exceed the planned rate of 12-14 percent, and in 2003 will stand at 10-12 percent. Touching on a 2003 budget, the Deputy Prime Minister said "in its parameters it will be even more rigid than budget-2002." In addition, he stressed that Russia's exports next year will remain at a high level, as well as a favorable trade and payments balance of Russia.
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